The Total View - (Page 35) Rollovers & Cash Withdrawals – Most Stayed Invested Nearly 90 percent of the retirement funds for participants that changed jobs in 2006 remained invested in an account for retirement, and just over 10 percent elected a cash withdrawal of the funds. Even a larger percentage of retirees’ assets remained invested in a retirement account; only 7 percent of assets were taken as a cash withdrawal. Of the retirement funds available for rollover or distribution due to a job change or retirement in 2006, more than half — 54 percent1 — remained invested with The Principal. This figure was higher than the industry average of 46.5 percent.2 Ninety percent of the 401(k) plans with recordkeeping services provided by The Principal allowed annuities as an option at the time of a distributable event. This is significantly higher than the industry average where 16.5 percent of pre-retirees and 22.7 percent of retirees were offered annuities as an option at distribution. 3 Percentage of Retirement Assets retained for retirement or taken as cash when participants change jobs 57% Retained by The Principal 12% Cash 43% 88% Retained for Retirement Invested in a qualified account outside The Principal Percentage of Retirement Assets retained for retirement or taken as cash when participants retire 47% Retained by The Principal Fast Fact Younger participants, those 34 or under, elected to receive a cash distribution option more often when changing jobs than any other age group, with 20% taking the cash option. 7% Cash 53% 93% Retained for Retirement Invested in a qualified account outside The Principal 35
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.