In the second quarter, NEPC's Defined Contribution team conducted a flash poll on defined contribution plan sponsor views and reactions in light of COVID-19.
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.