Push 401(k) Default Savings Rates Higher, Researchers and Plan Sponsors Agree

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SHRM Article ImageErring on the high side when choosing a 401(k) savings default-contribution rate won’t likely discourage employees from participating in the plan, new research suggests. Plan sponsors’ experiences back up this finding. Setting default rates between 7 percent and 10 percent did not result in lower enrollment when compared to a 6 percent control rate.