"This survey underscores one simple fact: the economy and the critics have not discouraged those who are regularly participating in a defined contribution plan," said Catherine Smith, CEO of ING U.S. Retirement Services. "The average American preparing for retirement recognizes the important role their employer-sponsored plan plays in achieving their savings goals, and they value the conveniences and options these plans afford."
The survey, part of ING's effort to gain greater insights into the "hearts and minds" of investors, polled more than 1000 men and women of all ages participating in defined contribution plans managed by ING's U.S. Retirement Services operations. These individuals represented a cross-section of investors in plans that span the 401(k), 403(b) and 457 Internal Revenue Code provisions and cover the corporate, not-for-profit, healthcare, education and government sectors.
Other findings further demonstrated that investors did not radically change their behavior or abandon these plans in response to the market downturn. For example, since the fall of 2008:
- More people (nearly 40%) reported joining an employer's plan or increasing their contributions than decreasing or stopping contributions (less than 30%).
- While more than one-third of participants (37%) changed to a more conservative asset allocation, nearly one fifth (19%) saw an opportunity to become more aggressive in their investment strategy.
- Very few reported either taking money out through a hardship withdrawal (6%) or a loan (5%).
