401(k) Plans in 2010: An Update from the SCF

Source: Alicia H. Munnell, Center for Retirement Research at Boston College, Issue Brief, IB#12-13, July 2012

From the summary:
The brief’s key findings are:
– Progress in the 401(k) system stalled in the wake of the economic crisis, according to the 2010 Survey of Consumer Finances data.
– Despite an increase in auto-enrollment, the percent of employees not participating ticked up.
– And 401(k) contributions slipped, while leakages through cash outs, loans, and hardship withdrawals increased.
– As a result, the typical household approaching retirement had only $120,000 in 401(k)/IRA holdings in 2010, about the same as in 2007.
– This amount would provide only $575 in monthly income, assuming a household purchases a joint-and-survivor annuity.

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