Adding loans to a 401(k) plan may not do much to increase participation rates.[@@]
Researchers at Principal Financial Group Inc., Des Moines, Iowa, reach that point in the company’s annual retirement plan trends report.
The researchers drew on data from Principal’s own retirement services operation as well as data from government agencies and private groups to compile the report.
The researchers note that plan participants with $25,000 to $49,999 in assets are especially likely to use professional asset-allocation services; that the typical plan with an automatic-enrollment features offers participants a 3% match; and that more than 95% of Principal 401(k) plans offer catch-up provisions.