If your plan has automatic enrollment, your employer is setting your default savings rate in case you don’t take action to save in your 401(k) plan. These automatically saved amounts will be invested in an age-appropriate portfolio based on your expected timeframe to retirement. You can log in to your account to change both your savings rate—including choosing not to participate in the plan—and investment selections at any time.
Often times, plans with automatic enrollment have higher participation rates. Many employers are now choosing this option so that they can help more employees get the ball rolling on saving for retirement while still giving you full flexibility to pick the right rate for you.