Fifty seven percent of employers automatically enroll workers in 401(k) plans, but slightly less than half of those that reduced or suspended matching contributions when the financial crisis hit in September 2008 have restored them, according to a survey released Wednesday by Towers Watson.
The survey, conducted in April and May with 334 companies with 1,000 or more employees, also found that target-date funds are the biggest default investment option for 401(k) plans. Seventy two percent of employers use target-date or “lifecycle” funds as the default option and another 13% use balanced or lifestyle funds.
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