T. ROWE PRICE PUBLISHES REPORT FEATURING 401(k) PLAN SPONSOR AND PARTICIPANT BEHAVIOR IN FIRST HALF 2022
New study shows participants are staying the course and eager to get better educated about retirement savings amid rising inflation and heightened market volatility
Despite increased inflation and market volatility in the first half of 2022, participants have not changed their loan, distribution, or withdrawal behavior significantly. Participants who invested fully in target date products continued to exchange between investment choices at lower rates than plan participants at large.
The research also saw that while distribution rates have normalized since the height of the pandemic, financial hardship withdrawals increased slightly in the first half of 2022 compared to the previous two years. This is largely due to the fact that special COVID-related distributions are no longer available.
The report also found that participants consumed a greater amount of digital retirement planning and savings content during the second quarter of 2022, specifically around financial wellness. These popular programs focused on budgeting, retirement readiness, and maximizing 401(k) plans.
- Participants have not changed their loan, distribution, or withdrawal behavior significantly, despite increased inflation and market volatility
- More than 99% of participants who invested fully in a target date product did not make an exchange
- Participants accessed three times more retirement planning and savings content than in the same period last year
- Longer-tenured employees' average deferral rate is 48% higher than the average for new hires
- Hiring and termination rates reached five-year highs in the first half of 2022
"While we are seeing difficult economic conditions, we are encouraged to see participants continuing to maintain savings levels and take advantage of retirement education," said
To view a copy of the report highlights, click here.
About the REPORT
The Q2 Reactions Report was published by
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T. ROWE PRICE, PUBLIC RELATIONS - Daniel Morris, 443-804-8595, firstname.lastname@example.org, or Laura Parsons, 443-472-2281, email@example.com