It goes without saying that the coronavirus pandemic had, and will continue to have, repercussions on plan design and employee retirement savings outcomes. Yet in spite of the challenges, saving for retirement continued: Participant participation increased from 66% in 2019 to 67% in 2020.
The data reflects how both plan sponsors and participants understood that continuing to save for retirement is important, even during economic uncertainty:
While not necessarily "apples to apples," we can draw some comparisons between the 2008 Great Recession and the recent pandemic of 2020; one difference that stands out is average deferral rates.
Auto solutions make a difference:
Market volatility affected retirement savings but we still see continued growth:
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 674 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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