# Auto-Enrolment

*Retirement & Benefits — Finicade finance glossary*

Auto-enrolment puts employees into a retirement plan by default, leaving them to opt out rather than opt in. It is the most successful application of behavioural economics in public policy: participation rates jump from roughly half to over 90% with no change in incentives. Its known weakness is anchoring — people stay at the default contribution rate — which is why auto-escalation of that rate now usually accompanies it.

**Also known as:** automatic enrollment, auto escalation, opt-out pension

**Related terms:** [401(k)](https://finicade.com/glossary/401k), [Employer Match](https://finicade.com/glossary/employer-match), [Nudge](https://finicade.com/glossary/nudge), [Savings Rate](https://finicade.com/glossary/savings-rate), [Target-Date Fund](https://finicade.com/glossary/target-date-fund)

Source: https://finicade.com/glossary/auto-enrolment