Defined contribution (DC) retirement plan participants remain committed to saving, the Investment Company
Institute (ICI) found through its analysis of plan recordkeeping data covering more
than 26 million participants.
In the first half of the year, only 1.8% stopped
contributing to their DC plans, compared with 2.1% in the first half of
2014.
Participants also stayed the course with their asset allocations. Only 6.6% changed the asset allocation of their account balances, the
same as in the first half of 2014. Only 6% changed the asset allocation of
their contributions, up slightly from 5.1% in the first half of 2014.
Only 2.2% of participants took withdrawals in the first half of 2015,
compared with 2.3% in the first half of 2014, and only 0.9% took hardship
withdrawals in the first six months of this year, the same as in comparable
periods in the past three years.
Historically, the share of participants with loans tends to
increase after the first quarter of each year, ICI said. However, at the end of
June 2015, 17.5% of DC plan participants had loans outstanding,
compared with 17.4% at the end of March 2015.
Retirement
plan providers continue to place more emphasis on their mobile presence, according to Corporate Insight’s latest Retirement Plan Monitor report update.
In
the past year, providers have launched new phone apps, tablet apps and revamped
mobile sites. Only MassMutual introduced a mobile app while three firms
unveiled tablet apps: The Principal Financial Group, T. Rowe Price and
TIAA-CREF. The tablet apps all mirror the firms’ existing mobile platforms,
offering participants a consistent cross-platform experience.
The
Principal and T. Rowe Price introduced new responsive participant sites, thus
revamping the mobile browser experience. The new responsive designs not only
provide a uniform experience from desktop to mobile but also offer sleeker
interfaces and improved organization and navigation.
Most
firms with existing mobile platforms enhanced their offerings, including the
addition of transactions and tools. Charles Schwab and Transamerica both added
transactions for the first time to their mobile platforms – bringing the total
amount of firms that offer mobile transactions up to 11 out of 18 – and four
expanded their existing capabilities. This time last year, four of 17 firms offered transaction capabilities.
Fidelity,
The Principal, Transamerica and Voya Financial added mobile-friendly retirement
tools, allowing participants to assess their retirement readiness. Three of the
tools allow participants to conduct transactions directly from the results
interface. The addition of tools and transactions increases participant
engagement and encourages beneficial account changes, Corporate Insight says.
Additional
features, such as message centers and document sending capabilities, are slowly
appearing on mobile platforms. Sending documents, a feature added by one firm,
allows participants to use a phone’s or a tablet’s camera to upload documents,
similar to depositing a check on a mobile banking app.
Corporate
Insight suggests that going forward, firms should continue to add transactions,
tools and features such as the document upload to the mobile experience and
continue to incorporate responsive design, considering the increased dependence
on phones and tablets over traditional desktop computers.
Looking at actual
401(k), 403(b) and 457 accounts, Retirement Plan Monitor explores the plan
participant experience offered by leading defined contribution plan providers.
The research analyzes the online and offline user experience, with a focus on
website design and usability, online education tools, transaction capabilities,
participant account documents, plan fees and more.