Data can inspire solutions
What were the major trends that emerged for retirement plans in 2023—and what do those trends mean for 2024 and beyond?
Our annual Reference Point report breaks down data from the previous year to:
- Provide benchmarking for plans
- Analyze key trends
- Share commentary from T. Rowe Price experts
The insights in Reference Point can help plan sponsors, retirement professionals, and providers across the retirement industry determine next steps to help improve participant outcomes.
Account balances rebounded but fell short of the 2021 high
Strong markets in 2023 helped account balances regain some losses experienced in 2022.
The average account balance increased 14% to $115K.
Average account balances
2024 Midyear Report
Are older participants staying in the plan? Do Roth savers save more?
Inflation worries didn’t scare off savers
The average participation rate held steady from 2022 to 2023 and even surpassed the national average.
1 Source: T. Rowe Price Retirement Savings and Spending Study, 2023.
Roth is becoming a big priority
The popularity of Roth contributions continues to grow. It’s time to evaluate adding this option, especially as SECURE 2.0 will require plans to offer Roth or eliminate catch-up contributions beginning in 2026.
Target date investors are less likely to change direction
And among the few target date investors who made a change in 2023, 62% moved money to an investment with a later target date.
SECURE 2.0 could be contributing to a drop in distributions . . .
. . . at least among older participants. Participants age 72+ took 12.9% fewer distributions in 2023 than in 2022, potentially related to the change in the starting age for required minimum distributions from SECURE 2.0.
About the Report
Unless otherwise noted, all data included in this report are drawn from the following sources: Data are based on the large-market, full-service universe—T. Rowe Price total—of T. Rowe Price Retirement Plan Services, Inc., retirement plans (401(k) and 457 plans) consisting of 660 plans and over 2 million participants.
For more information on this report or where you can get additional industry-specific data to support your plan design discussions, please contact your T. Rowe Price representative.
202404-3479636