1 All data is based on Fidelity Investments recordkept data of nearly 21,600 corporate defined contribution (DC) plans and 13.5 million participants as of December 2015. Excludes nonqualified plans, TEM pooled plans, DB cash balance plans, plans with 0 participants, and FMR Co. plans. Participation rates in plans that offer automatic enrollment are 15.7% higher than those that do not. 42% of deferral increases are a result of AIP over the past 12 months.
2 Ignites reported the “average” household retains nearly two employer-sponsored DC plans, three IRA accounts, and one each of a traditional DB pension and cash balance plan. Along with other retirement accounts, that’s an average of nine separate retirement accounts—excluding separate savings in CDs, home equity, 529 accounts, etc.
3 Initial default could be a target date fund or other fund as determined by the plan (e.g., lifecycle fund, balanced fund), of which participants can opt out and choose a different investment option in the plan at any time.
4 The annual evaluation provides participants the opportunity to opt out of the automatic enrollment into the managed account. Participants can unenroll from the managed account and/or choose a different investment option in the plan at any time. In the instance they choose to opt out, they will not be included in the following year annual evaluation and passive enrollment campaign.
5 Any participant that unenrolls from PAS-W will automatically become ineligible for inclusion in future passive enrollment campaigns. Investing involves risk, including risk of loss.
Fidelity® Portfolio Advisory Service at Work is a service of Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments company. This service provides discretionary money management for a fee.
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