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

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.

MetLife Study of Employee Benefits Trends - Summary: The 6th annual MetLife Study of Employee Benefits Trends examines the attitudes of an increasingly diverse workforce toward financial and benefits-related issues. The Study also captures the benefits practices and perspectives of both small and large companies across a wide array of industries. Located at: MetLife , 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.

The Role of IRAs in U.S. Households' Saving for Retirement - Summary: With $4.6 trillion in assets in mid-2007, individual retirement accounts (IRAs) represent more than one-quarter of U.S. total retirement market assets, compared with 14 percent two decades ago. IRAs have also risen in importance on households' balance sheet. Located at: Investment Company Institute , January 2008. Click on headline for full article.

Fidelity Investments' Annual Report on the State of the 401k Industry - Summary: Building Futures VIII illuminates the magnitude of the challenge as well as the performance of the defined contribution system in confronting it. This eighth installment in the Building Futures series looks closely at the question of retirement readiness and the opportunities available to plan sponsors and service providers to enhance the workplace savings system. Located at: Fidelity Investments , November 2007. 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.

The Recent Trend Towards Later Retirement - Summary: A dramatic decline in work at older ages persisted over most of the twentieth century. Recently, however, retirement ages stabilized, prompting debate as to whether the early retirement trend had stopped or simply paused. This article shows that the trend towards earlier retirement has not just leveled off but has apparently reversed, with especially large increases in labor supply of women in late middle age. Located at: Center for Retirement Research at Boston College, 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.

401k Plan Asset Allocation, Account Balances, and Loan Activity in 2005 - Summary: This annual report is a joint venture between EBRI and ICI. The 2005 EBRI/ICI database covers approximately 37 percent of the universe of 401k plan participants, 11 percent of plans, and 42 percent of 401k plan assets. The EBRI/ICI project is unique because of its inclusion of data provided by a wide variety of plan recordkeepers and, therefore, portrays the activity of participants in 401k plans of varying sizes-from very large corporations to small businesses-with a variety of investment options. Located at: Investment Company Institute , August 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.

Earnings and Women's Retirement Security - Summary: By and large, those who continue to work until their mid-60s or beyond do not end up poor. The question is explored in this study is what determines women's labor force activity at older ages and what determines when they retire. Only by understanding these levers is it possible to make changes that are likely to encourage stronger labor force participation, and thus greater retirement security, for women. Located at: Center for Retirement Research, Boston College, June 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.

Empirical Regularity Suggests Retirement Risks - Summary: This brief discusses why the decline in defined benefit pensions, the drop in rates of return on capital, the increase in life expectancy, and the rise in health care costs require an increase in the wealth-to-income ratio to produce a comparable standard of living in retirement. Located at: Center for Retirement Research, Boston College , 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.

401k Plan Asset Allocation, Account Balances, and Loan Activity in 2004 - Summary: Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI) collect annual data on millions of 401k plan participants to present an accurate portrayal of the behavior of 401k plan participants. This report updates ICI and EBRI's research of 401k plan participant activity through year-end 2004. Located at: Employee Benefit Research Institute , September 2005. Click on headline for full article.

Regret, Portfolio Choice, and Guarantees in Defined Contribution Schemes - Summary: This paper evaluates the portfolio allocation behavior of participants in defined contribution plans, taking account of the possibility that such pension plan investors may be influenced by the prospect of regret. Located at: Pension Research Council, The Wharton School , September 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.

Deloitte Consulting 401k Benchmarking Survey Uncovers Tremendous Scrutiny Around Plan Investments - Summary: Dramatic increases in the use of investment advisors and greater fee transparency from providers and vendors underscore the mindset of human resources and employee benefits executives nationwide, according to a national survey released today by the Human Capital practice of Deloitte Consulting LLP. Located at: 401khelpcenter.com, April 2005. Click on headline for full article.

2004 Defined Contribution Survey - Summary: During one of the more tumultuous years in the industry's history, plan sponsors—and the participants whose retirements they help support—are offering more than ever. On average, participants have access to more funds, more advice, more defined benefit plans, and more Internet services, and are more likely to have a larger company match than found in last year's survey. Located at: Plansponsor.com (free registration required), December 2004. Click on headline for full article.

Sliding into Poverty? Cross-National Patterns of Income Source Change and Income Decay in Old Age - Summary: This paper is about the way that "retirement" income packages change as people age and the adequacy of those incomes at older ages. Located at: Center for Retirement Research at Boston College , November 2004. Click on headline for full article.

Why Don't Americans Save? - Summary: Data shows a major portion of the fall in saving can be traced to lower rates of growth of pension plans. Saving outside of the formal retirement accounts has also declined significantly. Located at: Center for Retirement Research at Boston College , November 2004. Click on headline for full article.

How Do Pensions Affect Expected And Actual Retirement Ages? - Summary: The trend toward earlier and earlier retirement has slowed and, perhaps, even reversed. A host of explanations are possible: the elimination of mandatory retirement, the cessation of the expansion of Social Security, the reduction of retirement incentives within Social Security, and the changing nature of the private pension system. This paper explores the latter issue – how pension coverage and the type of pension affect the timing of retirement. Located at: Center for Retirement Research at Boston College , November 2004. Click on headline for full article.

401k Plan Asset Allocation, Account Balances, and Loan Activity in 2003 - Summary: Published in August 2004. The portion of 401k balances invested in equities increased in 2003, reflecting the strength of equity prices. Beyond the market-driven changes, 401k plan participants do not appear to have made significant asset reallocations or to have made changes in their loan activity. Buoyed by strong equity market returns and ongoing contributions, 401k account balances increased in 2003. Among participants with accounts since year-end 1999, the average account balance increased 29.1 percent in 2003. Located at: Investment Company Institute , August 2004. Click on headline for full article.

America's Top Recordkeepers - 2004 - Summary: 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 registrations required), June 2004. 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.

Will Americans Ever Become Savers? - Summary: Why aren't some Americans saving for retirement? Among those who are, are they saving enough? And what can be done about it? Despite recent changes in the economy and efforts to educate the population about retirement, the 14th annual wave of the Retirement Confidence Survey finds that the proportion of Americans saving for retirement has remained constant, as have other key indicators of how Americans say they are preparing for retirement. Located at: Employee Benefit Research Institute , April 2004. Click on headline for full article.

Retirement Confidence Survey: Percentage of Americans Saving Stagnant Since 2001 - Summary: What will it take to get more Americans to save and plan for retirement? Despite a recovering economy and efforts to educate the population about the importance of planning and saving for retirement, the percentage of Americans who say they are saving for retirement remains stagnant. This, according to the 14th annual national Retirement Confidence Survey (RCS) released today by the Employee Benefit Research Institute (EBRI), American Savings Education Council (ASEC), and Mathew Greenwald & Associates (Greenwald). Located at: 401khelpcenter.com, April 2004. Click on headline for full article.

Employment, Social Security, and Future Retirement Outcomes for Single Mothers - Summary: This paper examines this recent increase and analyzes the implications for future retirement security. Using the most recent longitudinal data available, the authors model employment, hours of work, and wages for women raising children outside of marriage. Despite gains, many women who raised children outside of marriage will continue to fare poorly in retirement. Located at: Center for Retirement Research at Boston College , August 2003. Click on headline for full article.

Lump-Sum Distributions and Retirement Income Security - Summary: In a Congressional Research Service report, they found that about half of all workers age 21 and older participate in an employer-sponsored retirement plan, but not all of these workers will receive a pension or retirement annuity from the jobs they now hold. That's because many will receive a "lump-sum distribution" from their retirement plan when they change jobs. Located at: 401khelpcenter.com . Click on headline for full article.

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