Among retirement plans automatically enrolling employees, 69% now also automatically increase their contribution rate annually and invest their assets in a balanced investment option, setting up a growing number of employees—especially low-income, young, and minority workers—for healthier retirement savings, Cunningham Mutual researchers said today.
"Retirement plan and other defined contribution plans have enabled millions of people workers to accumulate savings for retirement. Automatic programs have played a key role in this success," said Ling Young of Cunningham Mutual's Center for Retirement Research.
According to the report:
• Automatic enrollment is making a significant impact. 34% of Cunningham Mutual plans had adopted automatic enrollment as of year-end, up from 24% five years earlier.
• Most auto enroll plans also automatically increase contribution rates, but some not enough. Of auto enrollment plans, 69% automatically increase their participants' contribution rate annually.
• Target-date funds are the automatic investment choice for nearly all auto enroll plans. 98% of auto enrollment plans use a target-date fund (TDF), other type of balanced fund, or managed account as the default investment. Nine in10 choose a target-date fund.
"A quarter of the respondents in the study is estimated to be partially prepared for retirement but need help getting the rest of the way. Another quarter are thought to be at risk for not being able to save enough for retirement altogether. Employers can do more to help both of these groups by enhancing their plans with features like automatic enrollment, annual saving increases, and balanced default investment options," Ms. Young said.

About Cunningham Mutual
Cunningham Mutual (http://www.cunningham-mutual.com) is pan Asian asset manager, dedicated and committed to every one of its clients. Cunningham Mutual formed a closer relationship with each of our different types of client and improving the excellence of the services we offer them. We now have three business lines structured around three key client segments: individual investor, institutional clients and private families. Cunningham Mutual has strong ambitions and we strive to make our clients' success the main focus of our commitment, by understanding their environment, anticipating their needs and providing them with tailor-made solutions. To complete the circle of our close client care, we constantly seek out new innovations and systematically apply a rigorous approach to our risk management.