An Investment Company Institute (ICI) study has determined retirement saving continued to be a strong focus for defined contribution (DC) plan participants during the first half of this year.
The analysis – Defined Contribution Plan Participants’ Activities, First Half 2022 – explored contributions, withdrawals and other activity in 401(k) and other DC retirement plans.
“Defined contribution plan participants generally stayed the course with ongoing contributions, and withdrawal activity remained low in the first half of 2022,” ICI Retirement and Investor Research Senior Director Sarah Holden said. “Plan participants held steady with their asset allocations despite stock values generally declining in the period.”
Per the study results, within the first half of 2022, 6.6 percent of DC plan participants changed the asset allocation of their account balances, noting the percentage was slightly lower than 7.3 percent in the first half of 2021, 8.3 percent in the first half of 2020 and 7.7 percent in the first half of 2009.
The ICI noted the study also showed DC first half of 2022 plan withdrawal activity was low and similar to the activity observed in the first half of last year; record keeper data indicate determined DC plan participants were continually committed to saving and investing; and DC plan participants’ loan activity was unchanged in the second quarter of this year.