Drafted to Save

The latest in 401(k)s is automatic enrollment. Don't opt out, but don't get stuck in a bad fund

There's a war going on over government and industry's efforts to get you to save for retirement. If you haven't been doing your part by stashing money in a 401(k) plan, you just might get drafted. That's right. A growing number of companies have begun enrolling workers in 401(k)s whether they like it or not. This isn't your dad's war. Draftees may--with written notice--opt out. But few do. The result is that plans with an automatic-enrollment feature boast enviable participation rates.

Nationally, 80% of those who qualify take part in a 401(k) plan. But a recent Hewitt Associates study found...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!