- Among employees who took action in their 401(k) plan during the fourth quarter last year, 81 percent took a positive action, such as starting or increasing contributions. That compares with 19 percent who took a negative action, such as stopping or decreasing contributions. These actions, which are measured quarterly and in this case occurred amidst a presidential election and fiscal cliff uncertainty, represent a two-year high.
- New 401(k) loan issuance transactions declined approximately 5 percent year-over-year, and total 401(k) hardship and in-service withdrawals fell nearly 8 percent year-over-year.
- As of the end of 2012, more than 90 percent of 401(k) participants who were automatically enrolled were still actively contributing to their plans.
Since 2009, employees have been taking increasingly positive actions in their 401(k) plans, widening the gap between those taking negative actions, according to a new report released today by Bank of America Merrill Lynch. The latest 401(k) Wellness Scorecard, which reveals quarter-over-quarter and year-over-year trends in plan participant behaviors, along with employers’ adoption of 401(k) design features in plans serviced by Bank of America Merrill Lynch, found that: