Data from October 2008 through April 2010 shows the average account balance increase for all participants was 34%, while the average increase for participants deferring into their plan and who made a deferral increase was 43%. Participants who used the automatic rebalancing feature saw an average increase of 47% during this time period, according to a Mercer news release.
Deferring participants who utilized automatic deferral increase and automatic rebalancing saw an average account balance increase of 60%.
In addition, those participants who made an account exchange during the same period did slightly worse than those who did not – an average account balance increase of 30% versus 35%, respectively.
Currently, 81% of Mercer’s clients offer an automatic rebalance feature in their plan, and 77% of the clients for which Mercer tracks deferral rates offer a systematic deferral increase feature.The analysis excluded any participants who took a withdrawal or loan from their account during the time period.