Macro & Financial Risk
2026-04-26
10 minute read
19 sources
The 2026 Auto-Enrollment Reset: SECURE 2.0, Plan Demographics, and the Asset Manager Stack
SECURE 2.0 Section 101 mandates auto-enrollment at 3 to 10 percent for new 401(k) and 403(b) plans starting plan year 2025, with full effect through 2026. Vanguard reports 92 percent participation under auto plans against 62 percent voluntary, target-date funds capture roughly 80 percent of new contributions, and the small-plan tail is the next coverage frontier. Asset managers, recordkeepers, and policy designers face a structural reset.
SECURE 2.0 became law on December 29, 2022 as Division T of the Consolidated Appropriations Act 2023. Section 101 requires every newly established 401(k) and 403(b) plan to automatically enroll new hires at a 3 to 10 percent default deferral in the first plan year, escalating one point annually to a 10 to 15 percent ceiling. The mandate f...