The automatic options that
In fact, Schwab's platform really does automate much of the entire process -- from automatically enrolling participants, deciding their contribution levels for them, synchronizing increases in contribution levels in step with raises and defaulting their investments into target-date funds, which offer ongoing rebalancing.
"Too often, employees don't take action because they are confused, overwhelmed or uncertain about making retirement plan decisions," said Steve Patterson, vice president of Schwab's corporate and retirement services unit. "By automating the enrollment, savings and investment decisions, plan sponsors can help employees save more for retirement."
A recent survey of workers by the
One of Schwab's 401(k) clients, Oregon Steel Mills, found that after switching to Schwab's automated platform, participation rates rose from 50% to 80%. The company is now also going to automatically set minimum contribution levels at 4%, which is Oregon Steel Mills' match level.