Women increased their deferral rates at twice the level of
men (an average increase of four basis points for women vs. an average increase
of two basis points for men), according to MassMutual's Retirement Services
Division data for the first quarter.
In defined contribution plans administered by MassMutual,
4.22% of participants increased their deferral percentage in the first quarter,
marking the second highest percentage in a single quarter since measurement
began in 2007.
"Deferral percentages are up, with the greatest
increase coming from Gen Y, and participants are letting their money work for
them by avoiding loans, withdrawals and other behaviors that can have a
negative impact," said Elaine Sarsynski, executive vice president of
MassMutual's Retirement Services Division and chairman and chief executive of
MassMutual International LLC.
Average deferral rates for the youngest savers (3.58%) are
lower than they are for older participants (7.18%). Gen Y savings, however, are
increasing at an accelerated
Participants age 29 and under increased their savings levels by 2.29% vs.
participants age 60 and older who increased by just .42%. Participants aged
40 to 49 had the second highest savings level increase of .57%, to an
average deferral rate of 5.27%. Also encouraging is that only 1.30% of
participants overall decreased their deferral percentage during the quarter,
and only 2.98% stopped deferring.