Most transfers went from equity to fixed income, according to the Alight Solutions 401(k) Index report.
A recent study found 81% of participants have logged into their accounts, with most signing in to check account balances or review investment options.
Participants shared with Empower the simple, direct retirement plan terminology they would prefer.
Participants said they would welcome assistance through their employers with figuring out how to catch up to their retirement savings goals and managing their expenses.
Average asset allocation in equities rose to 70.2% during June, the highest level in 20 years, though the proportion of new contributions going to equities remained at 69.2%.
Educating participants and offering them guidance on rollovers can substantially reduce loans, hardship withdrawals and cash-outs, experts say.
In April, it reached the highest levels since 2001, according to Alight.
They say loans and withdrawals put them in a better place financially, but they are concerned about their long-term financial picture.
A survey identified confusion plan sponsors can clear up with ongoing education and digital tools.
Likely feeling the same financial squeeze as their private sector counterparts, the new Public Retirement Research Lab also found they are contributing less to retirement savings.
Retirement plan sponsors can remind participants to review their finances and provide resources for them to do so.
Their portfolios' exposure to equities is back to pre-pandemic levels.
Recordkeepers say they saw low uptake for coronavirus-related distributions and loans, a stark contrast from what was predicted when the CARES Act was passed in March.
In October, all of their net trades went into fixed income, according to the Alight Solutions 401(k) Index.
Gen Zers likely had a great start to saving for retirement, but they are facing near-term financial challenges.