Defined contribution pension plan members in the U.S. are committed to saving and investing, as only two per cent stopped contributing to their plan in the first half of 2022, according to a report by the Investment Company Institute.
The report, based on record-keeper data covering more than 40 million DC plan members, noted one per cent halted their contributions in the first half of 2021, compared to two per cent in the first half of 2020 and five per cent in the first half of 2009, amid the 2008/09 financial crisis.
Just three per cent of DC plan members took withdrawals in the first half of 2022, similar to the activity observed in the first half of 2021, 2020 and 2019. Only two per cent took hardship withdrawals in the first half of 2022, compared with one per cent in the first half of 2021.
Most DC plan participants kept their asset allocations, even as stock values generally declined during the first six months of the year. In the first half of 2022, seven per cent of participants changed their asset allocations, similar to the first half of 2021 and down from eight per cent in 2020.