How and why your 401(k) is changing

(Reuters) - Employers are getting smarter about how they run retirement plans. They are making some moves that are good for younger workers, including automatically enrolling new employees in 401(k) plans and defaulting their savings into target-date funds, which offer an investment mix designed to meet retirement goals.

Other choices are raising eyebrows, including International Business Machine's decision to make its 401(k) matching contribution only once a year.

David Huntley, principal at HR Consultants in Baltimore and publisher of "The 401(k) Averages Book" talks about these and other trends.

Q. What's the latest and greatest in the world of 401(k)s?A. I'm so encouraged by the number of young people who are contributing to the max in their 401(k) plans. Every young person I talk to - teachers, coaches, engineers, Wall Street types - says they are maxing out in their retirement plans. That's never happened before.

Q. Why?A. The pieces are falling into place. Kids don't seem to think about Social Security, but they are aware that saving is important. The word 401(k) is out there all the time now. Auto-enrollment certainly helps - at least 30 percent of companies will automatically sign you up for retirement benefits. When millennials get hired, the benefits are front and center - not an afterthought.Q. What's your outlook for older workers?A. I'm 56, and I'm worried about the investment options for people my age. Even if people have saved enough, what kind of income can you get in a low-interest-rate environment? It's a real concern for people who are in or near retirement.