Most participants in defined contribution plans left their asset allocations unchanged as stock valuations rose during the first nine months of 2013, according to new research.
The Investment Company Institute unveiled this finding in its February 2014 report, “Defined Contribution Plan Participants’ Activities: First Three Quarters of 2013.” The survey details DC plan participants’ withdrawals and contributions, investment activity and loan activity.
The report reveals that that just 9.2 percent of DC plan participants changed the asset allocation of their account balances in the first three quarters of 2013. And 6.8 percent changed the asset allocation of their contributions. The levels of reallocation roughly matched those of the preceding year.
The report notes also that 3 percent of DC plan participants took withdrawals, similar to the pace recorded in the first three quarters of 2012. Hardship withdrawal levels likewise were low during the first nine months of 2013: Just 1.4 percent of DC plan participants took such withdrawals.