COLLECTED WISDOM™ - Studies and Research focused on 401k Plans

Target-Date Funds Survey - Summary: This is the published reults of a recent survey conducted be PSCA on target-date funds. PSCA received 397 responses from plan sponsors. 54.8 percent of responding companies have more than 1,000 participants. Located at: Profit Sharing/401k Council of America , November 2009. Click on headline for full article.

401k Plan Asset Allocation, Account Balances, and Loan Activity in 2008 - Summary: Because 401k balances can fluctuate with market returns from year to year, meaningful analysis of 401k plans must examine how participants' accounts have performed over the long term. This study looks at consistent participants in the EBRI/ICI 401k database over the five-year period from 2003 to 2008 and reports on the findings. Located at: Investment Company Institute , October 2009. Click on headline for full article.

Can 401k Plans Provide Adequate Retirement Resources? - Summary: This paper illustrates that moderate 401k contribution rates can lead to adequate income replacement rates in retirement for many workers; that adequate asset accumulation can be achieved using only a 401k plan; and that these results do not rely on earning an investment premium on risky assets. Located at: Pension Research Council at The Wharton School (free registration may be required), June 2009. Click on headline for full article.

Financial Literacy: Evidence and Implications for Financial Education - Summary: The paper discusses financial literacy in the United States in the context of retirement planning. Due to the long-term shift away from defined benefit to defined contribution pensions, it is important to examine whether workers are adequately equipped to manage the resultant increased responsibility for planning their retirement. Given that financial literacy is an important predictor of retirement planning and other important financial decisions, widespread illiteracy is a serious cause for concern. Located at: TIAA-CREF Institute , May 2009. Click on headline for full article.

The 2009 Retirement Confidence Survey - Summary: The recession has cast a pall over the retirement expectations of the vast majority of Americans, leaving a record-low 13 percent this year able to say they are very confident of having enough money to live comfortably in retirement, according to the 19th Annual Retirement Confidence Survey released by the nonpartisan Employee Benefit Research Institute. Located at: Employee Benefit Research Institute , April 2009. Click on headline for full article.

10th Annual Transamerica Retirement Survey - Summary: Since 1999, the Transamerica Center for Retirement Studies has conducted a national survey of U.S. business employers and workers regarding their attitudes toward retirement. The overall goal for the study is to illuminate emerging trends, promote awareness, and help educate the public. This is the just released published results of the latest survey. Located at: Transamerica Center for Retirement Studies , April 2009. Click on headline for full article.

Impact of Market Volatility on Participant Exchange Behavior - Summary: Recent market events are drawing a lot of attention to how defined contribution participants are reacting. This report contains exchange data through November 2008, and although these findings are early, it will provide some insight on the initial actions that participants took, if any, as they weather the turbulent markets of 2008. Located at: Fidelity Investments , January 2009. Click on headline for full article.

2008 401k Plan Eligibility Survey - Summary: This snapshot survey investigates eligibility practices of 531 profit sharing, 401k, and combination plans. Located at: Profit Sharing/401k Council of America , December 2008. Click on headline for full article.

2008 PLANSPONSOR Consultant Survey - Summary: Few associations are more valued by plan sponsors than the one with their investment consultant, and that assistance is rarely more appreciated than in times of market turmoil and uncertainty. Located at: Plansponsor.com (free registration may be required), October 2008. Click on headline for full article.

How America Saves 2008: A Report on Vanguard 2007 DC Plan Data - Summary: Illustrated with numerous charts and tables, this valuable reference tool provides an analysis of savings, investing, and account activity trends in Vanguard defined contribution plans. You’ll also find useful insights on a variety of contemporary issues, including automatic or default plan features, target-date funds, and company stock. Located at: Vanguard Center for Retirement Research , August 2008. Click on headline for full article.

The Efficiency of Pension Plan Investment Menus: Investment Choices in DC Plans - Summary: This paper assesses the efficiency and performance of 401k investment options offered by a large group of US employers. It showes that most plans are efficient compared to market benchmark indexes. Located at: Center for Retirement Research at Boston College , August 2008. Click on headline for full article.

Fulfilling Fiduciary Obligations Can Present Challenges for 401k Plan Sponsors - Summary: When acting as fiduciaries, they must act prudently and solely in the interest of plan participants and beneficiaries. The GAO administered a survey asking sponsors how they select plan features and oversee operations, reviewed industry research, conducted interviews, and reviewed related documents. Located at: Government Accountability Office , August 2008. Click on headline for full article.

Deloitte 2008 401k Benchmarking Survey - Summary: Employers are diligently seeking better ways to leverage their investment in 401k plans to attract, motivate, and retain workers. They are doing so with a relatively consistent set of beliefs about the key elements of plan effectiveness. Yet employers also are expressing some doubts and disappointments with their 401k plans as they experiment with designs and policies to achieve their business goals – sentiments that point to the need for additional fine-tuning, or perhaps in some cases, even a radical overhaul. Located at: International Foundation of Employee Benefit Plans , July 2008. Click on headline for full article.

2008 PLANSPONSOR Recordkeeping Survey - Summary: They say that the only things certain in life are death and taxes but, for defined contribution plan recordkeepers, a third certainty applies: change. Located at: Plansponsor.com (free registration may be required), July 2008. Click on headline for full article.

Financial Experience & Behaviors Among Women - Summary: Prudential Financial's study on the Financial Experience & Behaviors Among Women polled 1,033 American women about their financial knowledge, goals, actions taken, and confidence in attaining financial goals. The survey was administered from October 17 to 25, 2007. Located at: Prudential Financial , May 2008. Click on headline for full article.

Hardship Withdrawals and the Mortgage Crisis - Summary: Hardship withdrawals from Vanguard DC plans rose in 2006 and 2007, although the absolute level of withdrawals is still quite low. The increase may be correlated with either the emerging home mortgage crisis or broader economic stress among financially vulnerable plan participants. Located at: Vanguard Center of Retirement Research , April 2008. Click on headline for full article.

The Influence of Time Diversification on Horizon-Based Asset Allocations - Summary: Academic opinion is divided over the existence of time diversification—the premise that investments in stocks are less risky over longer periods. This new Vanguard white paper examines the empirical research on this subject. Located at: Vanguard Investment Counseling & Research , April 2008*. Click on headline for full article.

401k Plan Eligibility Survey - Summary: This is the tenth year that PSCA has collected defined contribution plan eligibility data. The changes over time have been significant. Located at: Profit Sharing/401k Council of America , February 2008. Click on headline for full article.

International Employee Benefits Trends - Summary: This inaugural edition of the MetLife Study of International Employee Benefits Trends reports on the results of our survey of both employers and employees across four countries that serve as a representative sample of different economic and workplace environments. Located at: MetLife, November 2007. Click on headline for full article.

2007 Retirement Plan Trends - Summary: This report gives a picture of the ever-evolving trends in the retirement industry and their potential impact on retirement plan sponsors and their participants. It includes an annual review, report card, and forecast, and it also provides plan sponsors with helpful tips that serve to compare your plan with industry benchmarks. Located at: Principal Financial Group , November 2007. Click on headline for full article.

2007 Consultant Survey - Summary: This is the results of Plansponsor.com's 2007 Consultant Survey which has just been published. Located at: Plansponsor.com (free registration may be required) , August 2007. Click on headline for full article.

2007 Recordkeeping Survey - Summary: As a complement to our Defined Contribution Survey - which measures how satisfied DC clients are with their providers - the Recordkeeping Survey gives employers the chance to see exactly which products and services each provider offers, as well as listing information on total assets and overall client demographics. Located at: Plansponsor.com (free registration may be required), June 2007. Click on headline for full article.

The 2007 Retirement Confidence Survey - Summary: The A large percentage of American workers see that the U.S. retirement system is going through major changes, but many are not taking steps that are likely to leave them well-positioned for a comfortable retirement, according to the 17th annual Retirement Confidence Survey (RCS). Located at: Employee Benefit Research Institute , April 2007. Click on headline for full article.

Projecting Behavioral Responses to the Next Generation of Retirement Policies - Summary: This paper examines retirement and related behavioral responses to policies that on average are actuarially neutral. Many conventional models predict that actuarially neutral policies will not affect retirement behavior. In contrast, our model allows those with high time preference rates to find that the promise of an actuarially fair increase in future rewards does not balance the loss from foregone current benefits. Located at: Michigan Retirement Research Center, March 2007. Click on headline for full article.

2006 Plansponsor DC Survey: Brave New World - Summary: Not so long ago, plan sponsors seemed relatively content with their providers, providers who were offering an expanding array of services, and at prices that, if they weren’t well understood, were nonetheless relatively painless, certainly on a historical basis. Having shaken many of the processing “bugs” out of the system—late checks, inaccurate statements, and the ilk—and also having shaken out many of the providers who lacked the commitment (or the profits), we were now ready to go to the Next Level. Located at: Plansponsor.com, December 2006. Click on headline for full article.

2006 On Track Retirement Study - Summary: The results of our most recent survey are not encouraging: Thirty-nine percent of employers believe that half of their employees will not have enough income to retire at a reasonable age (ages 62 to 65). Aon offers suggestions and tools on how to get employees save more and take more responsibility for their future. Located at: Aon Consulting, November 2006. Click on headline for full article.

How America Saves - Summary: The latest edition of How America Saves, the annual study of defined (DC) saving and investing from the Vanguard Center for Retirement Research, provides a detailed look at the savings adequacy issue and its implications for tomorrow's retirees. And for the first time since this valuable reference was initially published in 2000, it offers an in-depth look at employer contributions and autopilot plan design features. Located at: Vanguard Center for Retirement Research , November 2006. Click on headline for full article.

Annual 401k Benchmarking Survey - Summary: The Annual 401k Benchmarking Survey was conducted jointly by Deloitte Consulting LLP, the International Foundation and the International Society for Certified Employee Benefits Specialists. A total of 830 responses were received, representing the full spectrum of industries, geographic regions and company sizes. Respondents answered questions about their plans as well as, for the first time, a series of inquiries about other rewards programs. The result is a highly granular snapshot of plan characteristics, policies and trends. Located at: Deloitte, September 2006. Click on headline for full article.

America's Top Recordkeepers - 2006 - Summary: This survey gives employers the chance to see exactly which products and services each provider offers, as well as listing information on total assets and overall client demographics. This listing give information on 83 recordkeepers. Located at: Plansponsor.com (free registration required), July 2006. Click on headline for full article.

Savings, Portfolio Choice, and Retirement Expectations - Summary: This study finds that expectations of old age social security benefits have little effect on portfolio decisions, although there is some evidence that higher expected social security benefits lead to more risky financial investments, particularly in IRAs. Located at: Michigan Retirement Research Center , June 2006. Click on headline for full article.

The Importance of Default Options for Retirement Saving Outcomes - Summary: This paper summarizes the empirical evidence on how defaults impact retirement savings outcomes. The evidence strongly suggests that defaults impact savings outcomes at every step along the way. Located at: Pension Research Council, The Wharton School , January 2006. Click on headline for full article.

2005 Defined Contribution Survey - Summary: This is a comprehensive overview of the state of the defined contribution market, covering plan basics, participation rates, company stock, company match, advice, services and more. A record 4,741 plan sponsors responded to our survey this year, running the gamut of plan sizes. Located at: Plansponsor.com (free registration required), December 2005. Click on headline for full article.

America's Top Recordkeepers - 2005 - Summary: As a complement to our Defined Contribution Survey - which measures how satisfied DC clients are with their providers - the Recordkeeping Survey gives employers the chance to see exactly which products and services each provider offers, as well as listing information on total assets and overall client demographics. This survey is comprised of data collected from the providers themselves. Located at: Plansponsor.com (free registration required), June 2005. Click on headline for full article.

2005 Retirement Confidence Survey - Summary: What does it take to get workers to save more in their retirement plan? Based on the 401k experience, the message from workers is clear: Show me the money — the matching money — according to the 2005 Retirement Confidence Survey released today. Located at: Employee Benefit Research Institute, April 2005. Click on headline for full article.

STUDY: Costs and Benefits to Fund Shareholders of 12b-1 Fees - Summary: This paper addresses whether 12b-1 plans are successful in leading to faster asset growth and whether the shareholders that pay for 12b-1 plans receive any net benefits from the plans. The paper finds that all the evidence demonstrates that 12b-1 plans are successful at attaining faster asset growth; however, shareholders do not obtain any of the benefits from the asset growth. This result validates the concerns raised by opponents of 12b-1 plans about the conflicts of interest created by these plans. Located at: Securities and Exchange Commission , May 2004. Click on headline for full article.

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