T. ROWE PRICE: 401(K) LOAN SIZES OUTPACED INFLATION IN 2024, HIGHLIGHTING THE IMPORTANCE OF EMERGENCY SAVINGS AND FINANCIAL WELLNESS FOR RETIREMENT SAVERS
T. Rowe Price released its annual 401(k) benchmarking report revealing concerning trends in retirement savings behavior. The average 401(k) loan size increased by 4% in 2024, exceeding inflation rates, with increased borrowing across all age groups. Loan usage rose by two percentage points from 2023, though remaining below 2015-2019 levels.
A financial wellness survey showed 64% of participants cannot cover six months of expenses, with these individuals being twice as likely to take loans. The report highlighted that participants using target date products are 20 times less likely to make investment exchanges, with 84% staying within target date funds when they do make changes.
Notable findings include that 23% of participants aged 63+ are invested in different target years than the assumed retirement age of 65, and 55% of retirement-age participants exit the plan within four years of termination, while 50% of plan sponsors prefer participants maintain their balances in-plan during retirement.
T. Rowe Price ha pubblicato il suo rapporto annuale di benchmarking sui piani 401(k), evidenziando preoccupanti tendenze nel comportamento di risparmio per la pensione. La dimensione media dei prestiti 401(k) è aumentata del 4% nel 2024, superando i tassi d'inflazione, con un incremento dei prestiti in tutte le fasce d'età. L'utilizzo dei prestiti è cresciuto di due punti percentuali rispetto al 2023, pur rimanendo sotto i livelli del periodo 2015-2019.
Un sondaggio sul benessere finanziario ha rilevato che il 64% dei partecipanti non riesce a coprire sei mesi di spese, e queste persone hanno il doppio delle probabilità di richiedere prestiti. Il rapporto ha sottolineato che i partecipanti che utilizzano prodotti a data target sono 20 volte meno propensi a effettuare scambi di investimento, con l'84% che rimane nei fondi a data target quando effettua modifiche.
Tra i dati più rilevanti, il 23% dei partecipanti con più di 63 anni investe in anni target diversi dall'età pensionabile presunta di 65 anni, mentre il 55% dei partecipanti in età pensionabile lascia il piano entro quattro anni dalla cessazione del rapporto, e il 50% degli sponsor del piano preferisce che i partecipanti mantengano i saldi all'interno del piano durante la pensione.
T. Rowe Price publicó su informe anual de referencia sobre planes 401(k), revelando tendencias preocupantes en el comportamiento de ahorro para la jubilación. El tamaño promedio de los préstamos 401(k) aumentó un 4% en 2024, superando las tasas de inflación, con un incremento en el endeudamiento en todos los grupos de edad. El uso de préstamos subió dos puntos porcentuales respecto a 2023, aunque sigue por debajo de los niveles de 2015-2019.
Una encuesta sobre bienestar financiero mostró que el 64% de los participantes no puede cubrir seis meses de gastos, y estas personas tienen el doble de probabilidades de solicitar préstamos. El informe destacó que los participantes que usan productos de fecha objetivo son 20 veces menos propensos a hacer intercambios de inversión, con un 84% que permanece en fondos de fecha objetivo cuando realizan cambios.
Hallazgos importantes incluyen que el 23% de los participantes de 63 años o más invierten en años objetivo diferentes a la edad de jubilación asumida de 65 años, y el 55% de los participantes en edad de retiro salen del plan dentro de los cuatro años posteriores a la terminación, mientras que el 50% de los patrocinadores del plan prefieren que los participantes mantengan sus saldos dentro del plan durante la jubilación.
T. Rowe Price는 은퇴 저축 행동에서 우려스러운 추세를 드러낸 연례 401(k) 벤치마킹 보고서를 발표했습니다. 2024년 평균 401(k) 대출 금액은 4% 증가하여 인플레이션율을 초과했으며, 모든 연령대에서 대출이 증가했습니다. 대출 사용률은 2023년 대비 2%포인트 상승했으나 2015~2019년 수준보다는 낮았습니다.
재정 건강 설문조사에 따르면 참가자의 64%가 6개월치 비용을 감당하지 못하며, 이들은 대출을 받을 확률이 두 배 더 높았습니다. 보고서는 목표 연도 상품을 사용하는 참가자가 투자 교환을 할 가능성이 20배 낮으며, 변경 시 84%가 목표 연도 펀드 내에 머무른다고 강조했습니다.
주목할 만한 발견으로는 63세 이상 참가자의 23%가 가정된 은퇴 연령인 65세와 다른 목표 연도에 투자하고 있으며, 은퇴 연령 참가자의 55%가 퇴직 후 4년 이내에 플랜을 탈퇴하며, 플랜 후원자의 50%는 참가자가 은퇴 기간 동안 플랜 내 잔액을 유지하기를 선호한다는 점이 있습니다.
T. Rowe Price a publié son rapport annuel de référence sur les plans 401(k), révélant des tendances préoccupantes dans le comportement d’épargne-retraite. La taille moyenne des prêts 401(k) a augmenté de 4% en 2024, dépassant les taux d’inflation, avec un recours accru à l’emprunt dans tous les groupes d’âge. L’utilisation des prêts a augmenté de deux points de pourcentage par rapport à 2023, tout en restant inférieure aux niveaux de 2015-2019.
Une enquête sur le bien-être financier a montré que 64% des participants ne peuvent pas couvrir six mois de dépenses, ces personnes étant deux fois plus susceptibles de contracter des prêts. Le rapport a souligné que les participants utilisant des produits à date cible sont 20 fois moins susceptibles de réaliser des échanges d’investissement, avec 84% restant dans les fonds à date cible lorsqu’ils effectuent des changements.
Parmi les résultats notables, 23% des participants âgés de 63 ans et plus investissent dans des années cibles différentes de l’âge de retraite supposé de 65 ans, et 55% des participants en âge de retraite quittent le plan dans les quatre ans suivant la cessation, tandis que 50% des sponsors préfèrent que les participants conservent leurs soldes dans le plan pendant la retraite.
T. Rowe Price veröffentlichte seinen jährlichen 401(k)-Benchmarking-Bericht, der besorgniserregende Trends im Verhalten beim Altersvorsorgesparen aufzeigt. Die durchschnittliche 401(k)-Darlehenshöhe stieg 2024 um 4% und überstieg damit die Inflationsrate, wobei die Kreditaufnahme in allen Altersgruppen zunahm. Die Darlehensnutzung stieg im Vergleich zu 2023 um zwei Prozentpunkte, blieb jedoch unter den Niveaus von 2015-2019.
Eine Umfrage zum finanziellen Wohlbefinden zeigte, dass 64% der Teilnehmer keine sechs Monate Ausgaben decken können, und diese Personen doppelt so wahrscheinlich Kredite aufnehmen. Der Bericht hob hervor, dass Teilnehmer, die Zieltermin-Produkte nutzen, 20-mal weniger wahrscheinlich Investmentwechsel vornehmen, wobei 84% bei Änderungen innerhalb der Zieltermin-Fonds bleiben.
Bemerkenswerte Erkenntnisse sind, dass 23% der Teilnehmer ab 63 Jahren in andere Zieljahre investieren als das angenommene Rentenalter von 65, und 55% der Teilnehmer im Rentenalter den Plan innerhalb von vier Jahren nach Austritt verlassen, während 50% der Plananbieter bevorzugen, dass Teilnehmer ihre Guthaben während des Ruhestands im Plan belassen.
- Participants using financial wellness resources show stronger savings behavior
- 84% of target date fund investors maintain disciplined investment strategy when making changes
- Plan sponsors are developing solutions to better accommodate retirees
- 401(k) loan sizes increased 4% in 2024, exceeding inflation
- 64% of participants lack adequate emergency savings
- Loan usage increased by two percentage points since 2023
- 55% of retirement-age participants exit plans within four years of termination
New report features latest trends in 401(k) plan design and participant behavior, based on the firm's recordkeeping client data for 2024
Meanwhile, data from a financial wellness questionnaire, hosted by T. Rowe Price for its 401(k) participants, found that
"With rising inflation, market volatility, and ongoing economic shifts, the importance of emergency savings funds and financial wellness programs becomes even more clear," said Francisco Negrón, head of Retirement Plan Services at T. Rowe Price. "Plan sponsors play a critical role, especially under these circumstances, and can have a direct impact on the financial security of their employees."
Additional key findings include:
- Participants who engage with financial wellness resources and retirement income tools, like T. Rowe Price's Retirement Income Planner or Social Security Optimizer, tend to demonstrate stronger savings behavior.
- Participants invested solely in a target date product are 20 times less likely to make an exchange and even when they do,
84% of them exchange into another target date fund. - Twenty-three percent of participants aged 63 and older are currently invested in different target years than the assumed retirement age of 65. As participants age, an increasing percent are invested in a fund with a target date year other than the assumed retirement age of 65, illustrating a potential need for more personalized target date solutions.
- Fifty-five percent of retirement age participants leave the plan within four years of termination and another roughly
20% leave in the following five years. Meanwhile,50% of plan sponsors prefer their participants keep their defined contribution plan balances in-plan when they retire. More plan sponsors are starting to offer solutions to better accommodate retirees and have expressed interest in implementing retirement income solutions.
Negrón adds, "Our purpose in delivering this report is simple: to equip plan sponsors and financial consultants with the insights they need to improve the financial futures of their participants. Ultimately, T. Rowe Price is dedicated to helping every participant get on the path toward better retirement outcomes, because everyone deserves to feel confident about their financial future."
ABOUT T. ROWE PRICE
Founded in 1937, T. Rowe Price (NASDAQ – GS: TROW) helps individuals and institutions around the world achieve their long-term investment goals. As a large global asset management company known for investment excellence, retirement leadership, and independent proprietary research, the firm is built on a culture of integrity that puts client interests first. Clients rely on the award-winning firm for its retirement expertise and active management of equity, fixed income, alternatives, and multi-asset investment capabilities. T. Rowe Price serves millions of clients globally and manages US
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SOURCE T. Rowe Price Group
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