Press release
T. ROWE PRICE PUBLISHES REPORT FEATURING 401(k) PLAN SPONSOR AND PARTICIPANT BEHAVIOR IN FIRST HALF 2022
New study shows participants are staying the course and eager to get better educated about retirement savings amid rising inflation and heightened market
About this update from T. Rowe Price Group, Inc.
[{"type":"text","content":"New study shows participants are staying the course and eager to get better educated about retirement savings amid rising inflation and heightened market volatility\nBALTIMORE, Sept. 15, 2022 /PRNewswire/ -- T. Rowe Price, a global investment management firm and a leader in retirement, has published a report detailing plan sponsors' and participants' reactions to increased inflation and market volatility in the first two quarters of 2022. The report examines retirement behavioral trends and correlations between the challenging economy and job tenure with rates of savings for retirement.\nDespite increased inflation and market volatility in the first half of 2022, participants have not changed their loan, distribution, or withdrawal behavior significantly. Participants who invested fully in target date products continued to exchange between investment choices at lower rates than plan participants at large.\nThe research also saw that while distribution rates have normalized since the height of the pandemic, financial hardship withdrawals increased slightly in the first half of 2022 compared to the previous two years. This is largely due to the fact that special COVID-related distributions are no longer available.\nThe report also found that participants consumed a greater amount of digital retirement planning and savings content during the second quarter of 2022, specifically around financial wellness. These popular programs focused on budgeting, retirement readiness, and maximizing 401(k) plans.\nKey Highlights:\nParticipants have not changed their loan, distribution, or withdrawal behavior significantly, despite increased inflation and market volatilityMore than 99% of participants who invested fully in a target date product did not make an exchangeParticipants accessed three times more retirement planning and savings content than in the same period last yearLonger-tenured employees' average deferral rate is 48% higher than the average for new hiresHiring and termination rates reached five-year highs in the first half of 2022\"While we are seeing difficult economic conditions, we are encouraged to see participants continuing to maintain savings levels and take advantage of retirement education,\" said Rachel Weker, senior retirement strategist for Retirement Plan Services at T. Rowe Price. \"For those participants who consume a...