--- title: Automatic enrollment helps employees save, but company contributions are essential description: Automatic enrollment helps employees save, but company contributions are essential --- [Skip to content](https://blog.plexusgroupe.com/plexus-blog/retirement-plans/automatic-enrollment-helps-barrington-employees-save-company-contribution-essential#main-content) [![The Plexus Groupe](https://blog.plexusgroupe.com/hs-fs/hubfs/Logo%20and%20Design%20Files/plexus_sis_logo_color.png?width=1468&height=368&name=plexus_sis_logo_color.png "The Plexus Groupe")](https://www.plexusgroupe.com/) # Automatic enrollment helps employees save, but company contributions are essential 26 April 2016 [Artoon](https://blog.plexusgroupe.com/author/artoon) [Employee Benefits](https://blog.plexusgroupe.com/tag/employee-benefits), [Retirement Plans](https://blog.plexusgroupe.com/tag/retirement-plans) More and more, companies are electing to automatically enroll their employees into 401(k) plans. The advantage to this is obvious: in an era where pensions are few and far between for private-sector employees, it’s on the individual to save. And employer-sponsored 401(k) plans are an ideal way to build a foundation for retirement. Companies who elect to auto-enroll employees into a 401(k) have to give the enrollees the option to decline participation. Plan participants also have the option to change their [level of contribution](https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Automatic-Enrollment), as the IRS notes. For instance, a participant auto-enrolled in a plan contributing six percent toward a 401(k) might decide to set aside 10 percent per pay period instead. There is data suggesting auto-enrollment could increase retirement savings across the U.S. working population, with the U.S. Department of Labor stating the non-participant rate in retirement plans could drop from 30 to 15 percent simply by [automatically electing workers](http://www.dol.gov/ebsa/publications/automaticenrollment401kplans.html) into the plan. However, auto-enrollment alone isn’t a cure-all for increasing retirement savings, and making sure employees are setting aside more than just a mere pittance [is essential](http://www.dailyfinance.com/2011/07/11/401k-automatic-enrollment-pros-cons/), as DailyFinance.com points out. In short, auto-enrollment is just one tool in the plan sponsor’s tool box. How can you help your employeex meet their long-term retirement goals? It’s easy. Contact a Plexus Financial Services client service team representative by calling**847.307.62222 (Chicago) or by** visiting us online at [plexusfs.com](http://www.plexusfs.com/). ABOUT PLEXUS FINANCIAL SERVICES, LLC [*Plexus Financial Services*](http://plexusfs.com/) *is located at 21805 West Field Parkway, Suite 300, Deer Park, IL 60010. Securities and advisory services offered through Plexus Financial Services, LLC. Member FINRA/SIPC, a Registered Investment Adviser.* *Plexus Financial Services is a CEFEX-certified organization. CEFEX, the Centre for Fiduciary Excellence, has certified Plexus Financial Services to the Fiduciary 360 (fi360) standard, “Prudent Practices for Investment Advisors.”* [![plexus](https://blog.plexusgroupe.com/hubfs/Imported_Blog_Media/Plexus_CTA_final.png)](https://blog.plexusgroupe.com/) ### Related Post ##### [How can employees save enough for retirement? 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