September 27, 2012
majority of company stock plan assets (57%) are being earmarked for eventual
investment or retirement savings after participants sell them. ---
Just 13% of the assets are being targeted to pay off bills
or debt in the future, according to a survey by Fidelity Investments. In years
past, the largest allotment of assets was directed toward paying off bills and
debt (32%). Just one-quarter of the assets were targeted previously for future
investment or retirement savings, the study found.
It also found participants in stock option, stock purchase
and restricted stock plans tend to be aggressive savers. On average, these
participants report they are saving 18% of their annual household income using
various savings vehicles, including:
into a 401(k) type plan;
into personal savings;
into company stock plans;
into brokerage accounts;
into individual retirement accounts (IRAs); and
into other vehicles.
“On average, stock plan participants
have a very strong savings rate and are using their company stock as an
important building block for their retirement portfolio,” said Kevin Barry,
executive vice president of Fidelity’s Stock Plan Services business.