How does 401(k) auto-enrollment affect me and can I change the default rate?

Many plans now automatically enroll new hires at a default deferral rate, often 3% to 6%, unless you opt out. Under SECURE 2.0, most newly created 401(k) and 403(b) plans are required to auto-enroll eligible employees starting at 3% to 10%. The default investment is usually a target-date fund matched to your expected retirement year.

You are never stuck with the defaults. Log into your plan portal to raise the rate (crucial if the default is below the match threshold), change your investments, or opt out entirely. The danger of the default is complacency: a 3% starting rate may miss part of your match and is well below what most people need to save. Bump your rate up promptly to at least capture the full employer match.