According to “Defined Contribution Plan Participants’ Activities, First Half 2013,” contribution rates remained high during the first half of the year. Just 1.5% of DC plan participants stopped contributing in the first half of 2013—a slight decrease from the 1.6% measured during the first half of 2011 and 2012.
Withdrawal activity also remained low during the first six months of 2013, with 2.1% of DC plan participants taking any type of withdrawal in the first half of 2013. Hardship withdrawals clocked in at 0.9% for participants. Researchers observed the same withdrawal levels last year.
DC plan loan activity, down fractionally over last year, remains elevated compared with rates before the 2008-09 financial crisis. At the end of June 2013, 18.1% of DC plan participants had loans outstanding, compared with 17.9% at the end of March 2013, 18.2% at year-end 2012, and 15.3% at year-end 2008.
Asset allocation strategies for DC plans remained steady as well from January to the end of June, with 7.4% of DC plan participants changing the asset allocation of their account balances and 6.0% altering contribution allocations.
More about the study’s findings and methodology is here.