Nevertheless, participants’ commitment to 401(k) and similar plans continued, as evidenced by stronger contribution activity and lower levels of participant-initiated changes in asset allocations, ICI said in a press release.
The data showed that as of June 2010, 17.5% of DC plan participants had loans outstanding, compared with 16.5% with loans outstanding at year-end 2009. Only 2.1% of DC plan participants took withdrawals in the first half of 2010, compared with 1.8% in the first half of 2009. The share of workers taking hardship withdrawals was only 0.9%, the same as in the first half of 2009.
Only 1.5% of DC plan participants stopped contributing in the first half of 2010, compared with 4.6% in the same time frame in 2009. Only 6.6% of DC plan participants changed the asset allocation of their account balances; 6.3% changed the asset allocation of their contributions.Defined Contribution Plan Participants’ Activities is at http://www.ici.org/pdf/ppr_10_rec_survey-q2.pdf.