More 401(k) plans are using auto enrollment and auto escalation, according to a report from Bank of America Merrill Lynch.
According to the latest quarterly 401(k) Wellness Scorecard — based on actions taken by the firm’s clients — plans using an auto-enrollment feature increased 16% in 2013, to 343 plans. A total of 295 plans used auto enrollment in 2012, and 282 plans in 2011.
The number of plans using auto escalation grew 26% to 250 plans. A total of 199 plans used the feature in 2012, and 172 plans used it in 2011.
Nearly half of participants in plans that offer auto enrollment but not auto escalation still increased their contributions. According to the report, 41% of participants in those plans with auto enroll but not auto escalate have increased their contributions since the beginning of 2012. Only 25% of participants had done so in 2011.