Key Points to Consider
If auto-acceleration sounds like it might work for you, here are some words to the wise:
Keep in mind that your employer may make the initial determination of how much the automatic increase will be, how often it will be triggered and whether there will be a cap on total savings—10% or 15% of one’s paycheck, for instance.
There should always be an opt-out for participants. If you have signed up for the standard, automatic increase for next year and suddenly decide you want to call it quits, you should be able to sit down at your computer and flip a switch to turn the increase mechanism off, or change it to a different level.
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Make sure you know the particulars of your own plan. Ask the folks in human resources if they have an 800 number for the plan vendor or another source of information if it the details aren’t entirely clear.
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