Defined contribution (DC) plan participants’ contribution activity remained strong in 2021, according to an ongoing Investment Company Institute (ICI) study. ICI tracks contributions, withdrawals, and other activity in 401(k) and other retirement plans, based on data covering more than 30 million accounts in employer-based DC plans. The latest data indicate that Americans remain committed to retirement saving and investing. Only 1.2 percent stopped contributing to their plans in the first three quarters of 2021, compared with 2.2 percent in the first three quarters of 2020, and 5.0 percent in the first three quarters of 2009 (another time of financial market stress).
“Despite the economic hardships brought on by the lingering pandemic, the long-term mindset of retirement savers continues to serve them well,” said Sarah Holden, ICI senior director of retirement and investor research. ICI has been tracking DC plan participant activity through recordkeeper surveys since 2008.
Americans Remain Committed to Retirement Saving
Read about how early and consisting investing in your employer 401k can help you win the retirement race.