More employers are providing value-added 401(k) plan features that help drive positive plan participation and savings behaviors, according to new research from Charles Schwab.

"For many 401(k) investors, the 401(k) is their primary retirement savings vehicle, so it is important that employers continue to make available plan features that drive better participation, savings levels and outcomes," says Dean Kohmann, Charles Schwab vice president of 401(k) plan services. "The employers we work with understand this responsibility as evidenced by some significant increases in features like automatic enrollment, automatic savings increases, and professional guidance in the form of target date funds and one-to-one advice."

According to data collected from 401(k) plans serviced by Schwab Retirement Plan Services, Inc. through the first half of 2010:

• Nearly three-quarters (74 percent) of employers make 401(k) advice available to plan participants, as compared to 42 percent in 2005.
• More than three-quarters (76 percent) of employers currently include target date funds in their fund line-ups, compared to 57 percent in 2005.
• Thirty-eight percent of employers automatically enroll participants, up dramatically from just 5 percent in 2005. An even greater number of larger companies automatically enroll participants. Among companies with more than 2,500 participants, 53 percent use automatic enrollment.
• Thirty-seven percent of employers using automatic enrollment are also using automatic savings increases, up from 14 percent in 2006, when Schwab's plan clients first began implementing automatic savings increases.
• Sixty-nine percent of employers provide a 401(k) matching contribution, down from a peak of 76 percent in 2006.