2013 Universe Benchmarks Report
Measuring Employee Savings and Investing Behavior in Defined Contribution Plans
The Aon Hewitt 2013 Universe Benchmarks research report analyzes participant behavior of more than 3.5 million employees eligible for defined contribution plans. This report focuses primarily on the quality of participation, plan balances, investments, account activity and demographics.
As data was analyzed, four key trends emerged:
- Participation rates hit an all-time high and savings rates increased slightly.
- Automation plays a strong role in many savings behaviors.
- Leakage declined while continuing to come down from its peak in 2010.
- Diversification improved and balances recovered to prerecession levels.
The result is a comprehensive study that can be used by plan sponsors:
- As a benchmark—Plan sponsors can learn how their workers’ saving and
investing behavior compares to that of the average worker.
- To shape plan structure—Employers can better understand general
patterns of participant behavior across demographic groups, and better
determine who might benefit from certain plan features and also benefit
from new opportunities to improve results.
- For targeting communication—Demographic analysis helps plan sponsors
pinpoint which groups of workers may benefit from certain communication
or education about the plan.