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November 07, 2013 at 10:21 AM
Withdrawals from defined contribution plans remained low in the first half of 2013, according to a new report.
The Investment Company Institute (ICI) discloses this finding in “Defined Contribution Plan Participants’ Activities, First Half of 2013.” The November report updates results from ICI’s survey of a cross section of recordkeeping firms representing a broad range of DC plans and covering about 24 million employer-based DC retirement plan participant accounts as of June 2013.
The report reveals that just 2.1 percent of DC plan participants have taken withdrawals in the first half of 2013, the same pace as in the first half of 2012. Hardship withdrawal activity also remained low: Only 0.98 percent of DC plan participants have taken hardship withdrawals during 2013, the same share as in 2012.
The report further shows that 25 percent of U.S. retirement assets are DC plan assets, including 401(k) plans ($3.8 trillion), other DC plans ($1.5 trillion) and individual retirement accounts ($5.7 trillion). Accounting for the balance of U.S. retirement assets in the second quarter are private defined benefit plans ($2.8 trillion), federal, state and local pensions ($5.2 trillion) and annuities ($1.8 trillion).
