What happened with 401k Saving in the First Half of 2016?

401(k) participants behaved well despite confusion, according to ICI.

401(k) participants behaved well despite confusion, according to ICI.

The behaved well and did exactly what they should. How boring.

401(k) participants stayed the course during the first half of this year, according to the Investment Company Institute’s latest study of retirement plan savers, despite Brexit, a contentious election primary season and ongoing turmoil overseas.

The study, “Defined Contribution Plan Participants’ Activities, First Half 2016,” tracks contributions, withdrawals, and other activity through the first six months of 2016, based on DC plan record keeper data covering about 28 million participant accounts in employer-based DC plans.

“DC plans are an important component of Americans’ retirement saving; assets in all DC plans accounted for about one-tenth of US households’ aggregate financial assets at the end of June 2016,” ICI notes.

The latest record keeper data indicate that savers remain committed to 401(k) plans, finding that nearly all plan participants continued contributing to their plans during the first half of 2016. Indeed, only 1.8 percent of DC plan participants stopped contributing in the first half of 2016, the same share as in 2015.

Other findings include:

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