Data & Research March 19, 2009

Average 401(k) Deferrals Increased—Barely

Contributions to 401(k) plans went up nearly 1% since 1988, according to the Employee Benefit Research Institute (EBRI).
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Data in a new report show the average contribution to 401(k)-type plans was 7.5% in 2006, unchanged from 2003 but up from the 6.6% in 1988 and 7.1% in 1993.

A news release from EBRI said the data also showed that from 1993 to 2006, about 45% of 401(k) participants contributed 5% or less of their salary, while the remaining participants were about equally divided between those who contributed 5% to 10% and those who contributed 10% or more.

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The high contributors—those who deferred 10% of more of their salary—were more likely to contribute a higher amount in 2006 than in 1993, EBRI said.

EBRI said the average deferral for 401(K)-type plans for nonagricultural wage and salary workers age 16 and over included:

  • 1998: 6.6%
  • 1993: 7.1%
  • 1998: 7.4%.
  • 2003: 7.5%.
  • 2006: 7.5%.

The article is based on 2006 data from the U.S. Census Bureau Survey of Income and Program Participation (SIPP) data (the latest available). The EBRI Notes is here.

Products March 19, 2009

Great-West Launches Retiree Web Site

Great-West Retirement Services launched an interactive Web site geared specifically toward participants nearing or in retirement.
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Retiree Crossroads is a participant-specific Web site that addresses financial topics along with the emotional issues that participants may face once in retirement, according to a press release. Participants are able to access Retiree Crossroads through a portal on their existing participant Web site.

Gregg Seller, senior vice president of government markets for Great-West Retirement Services, said the Web site has been rolled out for participants in 457 plans serviced by Great-West, and is expected to be available for 401(k), 401(a) and 403(b) plans later this spring.

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“Retiree Crossroads reinforces the idea that retirement planning doesn’t end with retirement. On this site, participants have access to a host of resources and tools that will help them create their own unique retiree strategy,” Seller added, in the realse.

The Web site can be previewed at www.fascore.com/retiree_crossroads/.

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