NEPC, LLC, one of the largest independent, research-driven investment consulting firms, conducted a poll about COVID-19’s impact on the retirement landscape, receiving 105 responses from defined contribution plan sponsors.
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“Our survey reveals that with the tremendous volatility amid the COVID-19 pandemic, plan sponsors’ number one priority is communicating with participants to help them navigate this period of disruption and make the best decisions for their future”
The findings quell some of the largest fears about the potentially detrimental impact of the pandemic and economic disruption on retirement savings:
- The vast majority (77%) of employers kept their match and don’t plan to lower or suspend it. Only half furloughed or laid off any staff.
- 91% of plan sponsors report less than 5% of Americans made an early withdrawal from their retirement account, as permitted by the CARES Act. 51% don’t anticipate an increase in coronavirus-related distributions this year.
- 9 in 10 are confident in their investment menu and believe they offer the right mix of options to withstand volatility.
“Our survey reveals that with the tremendous volatility amid the COVID-19 pandemic, plan sponsors’ number one priority is communicating with participants to help them navigate this period of disruption and make the best decisions for their future,” said Ross Bremen, Partner in NEPC’s Defined Contribution practice. “Between the SECURE Act, the CARES Act, and the DOL’s ruling on private equity’s inclusion in plans, there is also tremendous legislative and regulatory change to react to.”
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