Fewer defined contribution plan participants changed their asset allocations in the first half of 2014 than did so in 2013, according to a new report by the Investment Company Institute (ICI). The report includes 403(b)s in its definition of DC plans, and it includes annuities held by 403(b)s in its statistics concerning annuities.
During the first half of 2014, 6.6% of DC plan participants changed the asset allocation of their account balances and 4.3% changed the asset allocation of their contributions, according to the ICI. “Defined Contribution Plan Participants’ Activities, First Half 2014,” based on the activity of some 25 million participant accounts, notes that that was less than the reallocation activity observed in the same time frame a year earlier, when 7.4% shifted the allocations on their account balances, and 6.0% made changes to their contribution allocations.
By contrast, in 2009, 7.7% changed the allocation of their account balance, and nearly one-in-ten (9.3%) did so to the allocation of their contributions.
Loans, Withdrawals Constant
In the first half of 2014, 2.3% of DC plan participants took withdrawals, about the same (2.2%) as the pace in the first half of 2013. About 0.9% of DC plan participants took hardship withdrawals during the first half of the year, matching the pace of a year ago.
However, 2.1% of DC plan participants stopped contributing to those plans during the first half of the year, compared with 1.5% a year ago — but much improved from the 4.6% who did so in 2009.
At the end of June 2014, 17.9% of DC plan participants had loans outstanding, compared with 17.7% at the end of March 2014, 18.2% at year-end 2013, and 15.3% at year-end 2008.
During the first half of 2014, 6.6% of DC plan participants changed the asset allocation of their account balances and 4.3% changed the asset allocation of their contributions, according to the ICI. “Defined Contribution Plan Participants’ Activities, First Half 2014,” based on the activity of some 25 million participant accounts, notes that that was less than the reallocation activity observed in the same time frame a year earlier, when 7.4% shifted the allocations on their account balances, and 6.0% made changes to their contribution allocations.
By contrast, in 2009, 7.7% changed the allocation of their account balance, and nearly one-in-ten (9.3%) did so to the allocation of their contributions.
Loans, Withdrawals Constant
In the first half of 2014, 2.3% of DC plan participants took withdrawals, about the same (2.2%) as the pace in the first half of 2013. About 0.9% of DC plan participants took hardship withdrawals during the first half of the year, matching the pace of a year ago.
However, 2.1% of DC plan participants stopped contributing to those plans during the first half of the year, compared with 1.5% a year ago — but much improved from the 4.6% who did so in 2009.
At the end of June 2014, 17.9% of DC plan participants had loans outstanding, compared with 17.7% at the end of March 2014, 18.2% at year-end 2013, and 15.3% at year-end 2008.
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