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.
When the pandemic is financially and emotionally affecting employees, they need access to sound reasoning.
Even as Congress fails to enact new relief legislation, experts say they do not suspect defined contribution (DC) plan withdrawals will rise.
An American Consumer Credit Counseling (ACCC) report found 23% of employees are also increasingly unconfident in the economy.
School districts will find that advisers who normally camp out in the cafeteria or teachers’ lounge are striving to continue educating participants in creative ways.