What We Learned About 401k Participant Behavior Amid COVID-19 and the CARES Act

Vanguard’s latest analysis of defined contribution (DC) recordkeeping data from January through September 2020 suggests that, while there have been negative impacts on retirement readiness due to the COVID-19 pandemic, the response from participants has been better than expected.

Plan sponsors can take some credit for this finding, Vanguard says, noting that while CARES Act loan and withdrawal provisions caused some concern among plan sponsors about leakage from their plans, the data shows very few participants actually utilized the remedy provided. Continue reading.

Source: 401(k) Specialist Magazine
2-minute read.