BofA Merrill Lynch Finds Retirement Participants Boosting Savings
February
8, 2010 (PLANSPONSOR.com) - 401(k) participants took positive savings actions
within their retirement savings plans in Q4 and throughout 2009, according to
the latest quarterly "401(k) Contribution Activities Scorecard"
report from Bank of America Merrill Lynch.
Among the plans that the company serves, 721,000
employees took a positive savings action in their 401(k) plans in 2009. Of all
participants who have taken some type of savings action in 2009, 70% started or
increased saving versus 30% who stopped or decreased saving, the report says.
In addition, for the quarter, 80% of plan participants
who changed their savings rate in Q4 chose to increase savings (compared to 64%
in Q3, and 63% in Q2). The number of participants who stopped contributing to
their plans in Q4 was 53% lower than in Q3, and the number of participants who
decreased their contribution in Q4 was 33% lower than in Q3.
The analysis also finds that plan sponsors are taking
positive actions to help employees with their retirement savings goals. Among
plan sponsors the company serves, there was a 14% increase in the use of auto enrollment,
and a 23% increase in the use of auto increase.
Additionally, there was a 20% increase in plan usage of the
firm's Advice Access service, which helps participants determine the likelihood
they will reach their retirement savings goals.
There was a significant increase in plan participant
interest and use of Advice Access – a 52% increase in participants accessing
advice, and a 43% increase in participants receiving specific advice within
their 401(k) accounts.
The
report
is based on the activities
of more than 1.5 million participants across more than 1,500 plan sponsor
clients of Bank of America
Merrill Lynch.
Rebecca Moore
editors@plansponsor.com