Data & Research
Participants More ‘Into’ Retirement Savings
MassMutual's Retirement Services Division released data indicating that
participants in its retirement plans are taking a calmer, longer-term
approach to their retirement saving plans.
Reported by Rebecca Moore
The number of participants who decreased their deferral rate reached the lowest levels in Q3 (1.25%) and Q4 (1.28%), respectively.
According to a press release, while overall traffic on The Journey, MassMutual’s participant Web site, declined 13% in Q4 versus Q3 2009, traffic on the company’s participant education Web site, RetireSmart Academy, increased by more than 52% for the same period—indicating that participants are checking their account balances less frequently but are focused on educational activities. RetireSmart Academy also noted its highest-ever Asset Allocation Seminar attendance since the site launched early in 2009.
MassMutual’s average participant balance was up 29.1% in 2009 versus 2008 and participants are displaying increasing confidence in equities, the company said. As of year-end 2009, participant assets in bonds and stable value funds declined slightly, while assets in equities and asset allocation investments as a percentage of total assets grew to 62.3%, a high for the year.
In addition, investments in MassMutual’s asset allocation options increased from 18.6% at year-end 2008 to 21.6% at year-end 2009—a 16% increase and the highest level of assets in asset allocation funds as a percentage of total retirement assets at MassMutual to date.
According to MassMutual’s call center data, more participants called about loans than any other activity in the 4th quarter; however, the number of participant loans and hardship/in-service withdrawals declined by 6.7% and 6.2%, respectively, for the period.