Plan Participants Displaying 'Calm After the Storm'
SPRINGFIELD, MA, January 27, 2010 -- MassMutual's Retirement Services Division has released new data indicating that participants in retirement plans administered by MassMutual are taking a calmer, longer-term approach to their retirement saving plans. Here is the data.
A number of key participant measures for the quarter and year ended December 31, 2009 support this finding. Participant deferrals in Q4 2009 were up an average of 0.54% across all age groups vs. Q3 2009. The percentage of participants who maintained or increased their savings rate reached its highest level for the year in Q4 2009 at 96%, with 2.7% of participants actually increasing their savings rate. In addition, the number of participants who decreased their deferral rate reached the lowest levels in Q3 (1.25%) and Q4 (1.28%) respectively, demonstrating comfort with continued savings through their 401k plan.
While overall traffic on The Journey(SM), MassMutual's participant web site, declined 13% in Q4 vs. Q3 2009, traffic on the company's participant education web site, RetireSmart(SM) Academy, increased by more than 52% for the same period, a trend that indicates participants are checking their account balances less frequently but are very focused on educational activities.
RetireSmart Academy also noted its highest-ever Asset Allocation Seminar attendance since the site launched early in 2009, indicating a heightened interest in the importance of appropriate asset allocation. "Participants seem to have a greater understanding of the importance of taking a long-term approach and allocating their investments appropriately," says Heather Smiley, chief marketing officer for MassMutual's Retirement Services Division. "We have made a significant effort in investment education for participants and we will continue to do so in 2010," she adds.
MassMutual's average participant balance was up 29.1% in 2009 vs. 2008 and participants are displaying increasing confidence in equities. As of year-end 2009, participant assets in bonds and stable value funds declined slightly, while assets in equities and asset allocation investments as a percentage of total assets grew to 62.3%, a high for the year. Investments in MassMutual's asset allocation options increased from 18.6% at year-end 2008 to 21.6% at year-end 2009, a 16% increase and the highest level of assets in asset allocation funds as a percentage of total retirement assets at MassMutual to date.
"We are very pleased to see that MassMutual's retirement plan participants are taking full advantage of the many resources we offer to help them establish a long-term plan to retire successfully," says Elaine Sarsynski, executive vice president of MassMutual's Retirement Services Division and chairman and CEO of MassMutual International LLC.
According to MassMutual's call center data, more participants called about loans than any other activity in the 4th quarter, many of whom were exploring ways to pay off higher-interest debt and holiday expenses. While inquiries regarding loans and withdrawals were robust in the 4th quarter, the number of participant loans and hardship/in-service withdrawals actually initiated declined by 6.7% and 6.2% respectively for the period.
MassMutual's data covers approximately one million participants across more than 6,000 plans.
About MassMutual
MassMutual's Retirement Services Division has been serving retirement plans for more than 60 years. It offers a full range of products and services for corporate, union, nonprofit and governmental employers' defined benefit, defined contribution and nonqualified deferred compensation plans. It serves approximately one million participants. For more information regarding MassMutual Retirement Services, please call your retirement plan advisor or contact MassMutual at 1-866-444-2601.
###
Click here for more material dealing with current trends, opinion, news, legislative action, investments, marketing, sales, consulting, and legal issues on 401k plans.
This is a press release provided by the company or its representatives. 401khelpcenter.com, LLC is not the author of this release and is not associated or affiliated with any firm or organization mentioned unless otherwise noted. Use of any information obtained from this release is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com, LLC.
