Less than 3% of defined contribution plan participants stopped contributing to their workplace plans in 2013, according to the Investment Company Institute.
Of nearly 24 million DC participants, just 2.7% stopped making contributions in 2013, up slightly from 2.6% in 2012. The percentage of people who quit making contributions slowed down from ICI’s review of the first half of 2013, when 1.5% had already stopped.
With so few people stopping contributions, ICI suggested, “It is possible that some of these participants stopped contributing simply because they reached the annual contribution limit.”
Withdrawals are also just barely up, with 3.5% of participants taking a withdrawal in 2013, compared with 3.4% in 2012. Hardship withdrawals were unchanged at 1.7%.