In the context of a 401(k) plan, how does 'automatic enrollment' typically influence employee participation rates, and what specific implications does this have for retirement savings outcomes?

Automatic enrollment in a 401(k) plan significantly increases employee participation rates compared to voluntary enrollment. Under automatic enrollment, employees are automatically enrolled in the plan at a predetermined contribution rate (e.g., 3% or 5% of salary) unless they actively opt out. This leverages behavioral economics principles, as many people tend to stick with the def....