Two years in from the onset of the COVID-19 pandemic, we examine how plans and participants have fared. Despite the challenges, the data highlight encouraging signs observed over the past year.
Plan sponsors and participants took positive steps that show they realize the value of retirement savings programs:
Combining auto-solutions can help achieve better results:
Auto-increase using the opt-out approach proves more effective than opt-in approach. In 2021, participation in auto-increase was 65% in plans that used the opt-out approach compared with only 11% for plans using the opt-in approach.
The data from 2021 show us that sponsors and participants continue to understand the value of retirement savings programs. There is still a need for financial wellness programs to help participants manage challenges without losing sight of their long-term goals. Continued adoption of plan design best practices can help drive increased participation and savings rates.
About the Report
Unless otherwise noted, all data included in this report are drawn from the following sources: Data are based on the large-market, full-service universe—T. Rowe Price total—of T. Rowe Price Retirement Plan Services, Inc., retirement plans (401(k) and 457 plans) consisting of 660 plans and over 2 million participants.
For more information on this report or where you can get additional industry-specific data to support your plan design discussions, please contact your T. Rowe Price representative.
This material is provided for general and educational purposes only and is not intended to provide legal, tax, or investment advice. This material does not provide recommendations concerning investments, investment strategies, or account types; it is not intended to suggest that any particular investment action is appropriate for you. Please consider your own circumstances before making an investment decision.
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