Eighty-four percent of workers who are automatically enrolled in a 401(k) plan stick with the plan, up from 77% in 2007, Charles Schwab found. Participation among all plans rose to 77%, up from 73% in 2007.
“The good news is that most employees are sticking with their 401(k) plan, which continues to be one of the best vehicles to save for retirement,” said Catherine Golladay, vice president of 401(k) participant education and advice at Schwab. “The even better news is that people are also contributing to their accounts at almost the same level as they were prior to the market downturn. In fact, the average contribution rate in our plans stayed around 7% from 2007 to 2008, which is a reflection of people getting more serious about saving.”