Only 2.4% of 401(k) participants stopped contributing in 2010

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.