Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.
Americans Remained Committed to Their 401(k)s in 2017
Only 2.7% discontinued contributions, according to the ICI.
Americans remain committed to saving for their futures, according to the Investment Company Institute’s (ICI’s) report, “Defined Contribution Plan Participants’ Activities, 2017.” A mere 2.7% discontinued contributions during 2017, and 3.4% took withdrawals, virtually on par with the 3.3% who did so in 2016.
Only 1.7% took hardship withdrawals, up only slightly from the 1.6% who did so the year earlier. In 2017, 9.3% of defined contribution (DC) plan participants changed the asset allocation of their account balances, and 5.5% changed the allocation of their contributions. The ICI said this is similar to the activity in 2016.
Loan activity ticked downward, with 16.7% of DC plan participants having an outstanding loan at the end of December 2017, down from 17.0% the year earlier. The ICI also said that assets in 401(k) plans and other DC plans in 2017 rose to $7.7 trillion, comprising 27% of the nation’s total $28.2 trillion in retirement assets.
The ICI noted that in 2017, the S&P 500 rose 21.8%. ICI’s analysis is based on a survey of a cross section of recordkeeping firms representing a broad range of DC plans, covering more than 30 million DC plan accounts.
You Might Also Like:
![](https://si-interactive.s3.amazonaws.com/prod/planadviser-com/wp-content/uploads/2023/07/10160602/PA-071023-MandA-Slight-Decline-1434349137-web-450x315.jpg)
Fidelity Sees Quarter-on-Quarter Decline in Retirement Balances
![](https://si-interactive.s3.amazonaws.com/prod/planadviser-com/wp-content/uploads/2023/08/22133038/PA-082123-IRS-tax-relief-for-victims-of-Hawaii-wildfires-1131361055-web-450x315.jpg)
IRS Provides Tax Relief for Hawaii Wildfire Victims
![](https://si-interactive.s3.amazonaws.com/prod/planadviser-com/wp-content/uploads/2023/07/10112106/PA-071023-Annuity-Consultants-Tout-SPIAs-1286704808-web-450x315.jpg)