12.14.18
DC Participants Not Saving Enough, Withdrawing Too Much: Report
by: James Comtois
Participants of defined contribution plans are saving too little and withdrawing too much, according to a report by J.P. Morgan Asset Management. The report showed that many participants are starting average contributions at the minimum rate of 3.3 percent rate but failing to increase this rate over time. The report also found that middle income earners are most likely to take a loan from retirement accounts, while the average participant withdrew more than 55 percent in any given year at or soon after retirement.
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