Plan activity has remained steady, according to a recently released report from ICI covering withdrawals, contributions, asset allocation and loans, primarily during the first half of 2013. Highlights included:
• Hardship withdrawals remained low at 0.9%, which matched 2012 levels.
• Overall withdrawals, at 2.1%, indicate that most participants remained invested in their plans.
• Only 1.5% of participants stopped contributing, compared with 1.6% in 2012.
• Asset allocation for current account balances was adjusted by 7.4% of participants; 6.0% changed contributions, down from a high of 9.3% in the first half of 2009.
• 18.1% of participants had outstanding loans, compared with 17.9% in March 2013, 18.2% at the end of 2012 and 15.3% at the end of 2008.
With markets and the economy stable and growing, inertia on the part of participants seems to be helping, but that may be a liability if conditions change — which they always do.
