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

The U.S. Retirement Market, 2009 - Summary: This 40 page report presents detailed information on total retirement assets and mutual fund holdings in retirement accounts. It is organized into two broad sections: (1) narrative and data that highlight recent developments in the U.S. retirement market and (2) an appendix with additional data. Located at: Investment Company Institute , May 2010. Click on headline to read full article.

Retirement Income Guarantee Products Snapshot Survey - Summary: PSCA conducted a snapshot survey of plan sponsors in March, 2010 to determine their views on retirement income products. This is an overview of the survey results. Located at: Profit Sharing/401k Council of America , April 2010. Click on headline to read full article.

2010 Investment Company Fact Book - Summary: U.S.-registered investment companies play a significant role in the U.S. economy and world financial markets. These funds managed more than $12 trillion in assets at the end of 2009 for nearly 90 million U.S. investors. This is a review of trends and activity in the investment company industry. Located at: Investment Company Institute , April 2010. Click on headline to read full article.

Conservation of Choice: Simplifying Investment Options to Better Serve Participants - Summary: This paper explores why retirement plan participants tend to under save, misunderstand their investment options, and make poor allocation decisions. Based on studies in behavioral finance, it offers some potential solutions for structuring plan options to encourage participants rather than frustrate and confuse them. Located at: Arnerich Massena , April 2010. Click on headline to read full article.

11th Annual Transamerica Retirement Survey - Summary: The results of the 11th Annual Transamerica Retirement Survey -- conducted among nearly 3,600 American workers -- found that workers who are offered 401k plans, or similar employee-funded arrangements, exhibit more proactive retirement savings behaviors, demonstrate higher levels of knowledge about retirement investing, and are more confident in their ability to retire comfortably. Located at: Transamerica Center for Retirement Studies , April 2010. Click on headline to read full article.

2009 Risks and Process of Retirement Survey - Summary: This report presents the results of a telephone survey among Americans aged 45 to 80 conducted by Mathew Greenwald & Associates, Inc., and the Employee Benefit Research Institute on behalf of the Society of Actuaries. The purpose of the study was to evaluate Americans’ awareness of potential financial risks in retirement, how this awareness impacts the management of their finances with respect to retirement, and how Americans are managing the process of leaving the workforce. Located at: Society of Actuaries , April 2010. Click on headline to read full article.

Retirement Plan Survey 2010 - Summary: This study was conducted to gain a general assessment of the level of understanding of investments, fees and administrative practices related to retirement plans. The survey's major findings address: Fiduciary and investment challenges in 2009, Employer and employee economic challenges in 2009, Plan design features, Tax and ERISA compliance issues, and 403(b) plans. Located at: Grant Thornton LLP , April 2010. Click on headline to read full article.

2010 Retirement Confidence Survey - Summary: The 44 page 2010 Retirement Confidence Survey finds that Americans' confidence in their ability to afford a comfortable retirement, which had dropped sharply over the past two years, has stabilized now that the economic volatility of the recession has abated. The steep declines in other retirement confidence indicators also appear to be slowing. However, the retirement preparations reported by some workers are eroding, leaving them less prepared for retirement. Located at: Employee Benefit Research Institute , March 2010. Click on headline to read full article.

Retirement Plan Participation: Race/Ethnicity Differences - Summary: How do race and ethnicity affect the likelihood of participating in a retirement plan? How do the size of employers and the birthplace of workers affect these levels? Here are some of the key findings concerning race/ethnicity differences in employment-based retirement plan participation. Located at: Employee Benefit Research Institute , December 2009. Click on headline to read full article.

Participating in a Retirement Plan: Gender Differences - Summary: How does gender affect the likelihood of participating in a retirement plan? Here are some of the key findings on gender in employment-based retirement plan participation. Located at: Employee Benefit Research Institute , December 2009. Click on headline to read full article.

Emerging Retirement Model Study: A Survey of Plan Sponsors - Summary: MetLife conducted this survey of 240 plan sponsors at companies with at least 1,000 employees to examine employer attitudes and behaviors towards the aging workforce in the midst of a deep economic crisis, and recent regulation addressing the retirement security provided by pension and retirement plans. Located at: MetLife , December 2009. Click on headline to read full article.

Study of Employee Benefits: 2009 & Beyond - Summary: Given the extraordinary challenges and the potential changes facing plan sponsors, the need for sound benefits strategy and planning has never been greater. Benefits professionals are playing an increasingly important role as plan sponsors seek expert advice and guidance on maintaining the competitiveness of their benefits programs while managing costs effectively. This study looks at these and other trends that will continue to shape the employee benefits landscape over the next five years. Located at: Prudential , November 2009. Click on headline to read full article.

Trends and Experience in 401k Plans 2009 - Summary: The 2009 Trends and Experience in 401k Plans survey results reveal emerging trends in 401k plan design and administration. Information on key aspects of 401k design, investments, education, communication, plan expenses, and plan success was collected from a cross-section of plan sponsors. Located at: Hewitt Associates , November 2009. Click on headline to read full article.

A Study of 401k Savings Disparities Across Racial and Ethnic Groups - Summary: Significant differences can be found across race and ethnicity in the way U.S. employees save and invest in their 401k plans, according to this study -- the largest, most comprehensive examination of 401k saving and investing behaviors of African-American, Hispanic, Asian and white employees. Located at: Ariel Investments , November 2009. Click on headline to read full article.

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.

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.

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.

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