Investors stuck with their retirement savings plans in 2010, the Investment Company Institute said Tuesday, basing its findings on data from more than 23 million defined contribution accounts.

Only 2.4% of participants stopped contributing to their 401(k) accounts in 2010, compared to 3.4% in 2009.

And most participants did not tap into their accounts. Only 3.5% of participants took withdrawals in 2010, with only 1.7% taking hardship withdrawals. This was in line with the 3.1% who took withdrawals and 1.6% who took hardship withdrawals in 2009.

Outstanding loans, however, rose to 18.2% last year, up from 16.5% at year-end 2009.

Further, most investors stayed the course with their investments, with only 10% reallocating their investments last year, ICI reported.

Lee Barney writes for Money Management Executive, a SourceMedia publication.

Register or login for access to this item and much more

All Employee Benefit News becomes archived within a week of it being published

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access