Few 401(k) Plan Participants Cut, End Contributions

401(k) plan participants continued to contribute to their retirement plans at high levels in the first half of 2011, according to a survey of record keepers from the Investment Company Institute.

According to the survey, "Defined Contribution Plan Participants' Activities, First Half, 2011," 1.6% of plan participants stopped contributing in the first half of this year, compared to 1.7% the same period the previous year.

Only 2.1% of participants withdrew money, the same as the previous year, with 1.1% taking hardship withdrawals, compared to 0.9%.

In addition, 6.4% of plan participants changed the asset allocations of their accounts in the first half of 2011, compared to 6% during the same period the previous year.

Also according to the survey, 26% of U.S. retirement assets were in defined contribution plans.

ICI surveyed record-keeping firms representing 24 million plan participants.

SOURCE: http://www.pionline.com/article/20111027/DAILYREG/111029917/ici-survey-few-401k-plan-participants-cut-end-contributions