ICI Defined Contribution Plan Recordkeeper Data Show Retirement Plan Participants Continued to Save in 2016 

Washington, DC, June 6, 2017—Americans continued to save for retirement through defined contribution (DC) plans in 2016 according to ICI’s “Defined Contribution Plan Participants’ Activities, 2016.” The study tracks contributions, withdrawals, and other activity, based on DC plan recordkeeper data covering more than 29 million participant accounts in employer-based DC plans.

The latest recordkeeper data indicate that savers remain committed to saving and investing in their futures, as nearly all plan participants continued contributing to their plans in 2016. Only 2.7 percent of DC plan participants stopped contributing in 2016.

Other findings include:

• Withdrawal activity for DC plans remained low in 2016, and was in line with prior years’ activity. In 2016, 3.3 percent of DC plan participants took withdrawals, compared with 3.4 percent in 2015. Levels of hardship withdrawal activity also were low, with only 1.5 percent of DC plan participants taking hardship withdrawals during 2016, similar to the previous year. 

• Most DC plan participants stayed the course in their asset allocations. In 2016, 9.4 percent of DC plan participants changed the asset allocation of their account balances, and 5.6 percent changed the asset allocation of their contributions. Account balance reallocation activity was little changed and contribution reallocation activity was slightly lower compared with 2015.

• DC plan participants’ loan activity was slightly lower in 2016 than in the previous year. At the end of December 2016, 17.0 percent of DC plan participants had loans outstanding, compared with 17.4 percent at the end of 2015. Loan activity continues to remain slightly higher than eight years ago (at the end of 2008, 15.3 percent of DC plan participants had loans outstanding).

ICI has been tracking participant activity through recordkeeper surveys since 2008. This update provides results from ICI’s survey of a cross section of recordkeeping firms representing a broad range of DC plans. Please visit ICI’s 401(k) Resource Center for more information.