Reflections on participant progress in a time of change
Our “State of the participant 2022” report¹ reveals that over half of DC plan participants retained or achieved retirement readiness² in the past year. See how participants are saving, investing, and succeeding despite a lingering pandemic, the Great Resignation, and a volatile market.
Although the economic recovery has been far from smooth, more participants in every age group are on track for retirement. We look at how rates have changed over time—and what's driving the trends.
Retirement readiness among all participants exceeds 50%
Over 65% of those under 40 are now retirement ready
Retirement-ready participants by age group
How did the lingering effects of COVID-19 and the shock of the Great Resignation affect participant departures? We dug into the data to see where participant turnover’s been highest and lowest—and how these individuals have been taking their money. Use the interactive table below to see what plan turnover looked like in your industry in 2021.
With the progress of the SECURE Act 2.0, auto-enrollment and the auto-increase feature are on fiduciaries’ minds these days. See how well they’re working and learn about one important facet of the auto feature design.
The synergy of auto-enroll and auto-increase continues to boost retirement readiness at the plan level
Participant behavior may be greenlighting higher auto-increase caps
Top five auto-increase caps based on the percentage of plans using them
In October 2021, the DOL proposed a change to ERISA that would officially allow fiduciaries to consider environmental, social, and governance (ESG) factors in selecting funds for their DC plan lineups. We took a look at what percentage of plans are offering ESG funds on a stand-alone basis and the age of participants who are taking advantage of them.
ESG fund holdings are spread across the age spectrum
52% of participants with ESG funds are aged 50 and older
Destined to multiply? The growing percentage of John Hancock DC plans making ESG funds directly available to participants
Incorporating ESG criteria and investing primarily in instruments that have certain ESG characteristics, as determined by the manager, carry the risk that the fund may perform differently, including underperforming, than funds that do not use an ESG investment strategy.
Putting the research to work
Our financial professional resources help you automate your strategies to boost retirement readiness
Use plan manager to automate your service strategy—saving you time and improving your productivity.
Onboarding resource center
Our digital resources help you get off on the right foot onboarding new plans and newly eligible participants to John Hancock.
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1 All data is from our open-architecture platform. 2021 data reflects John Hancock’s 1.5 million participants, 1,645 plans, and $112.9 billion in assets under management and administration (AUMA) as of 12/31/21. 2022 data is based on John Hancock’s 1.6 million participants, 1,716 plans, and $108.5 billion in AUMA as of 3/31/22. Earlier data is from our 2020 and 2021 state of the participant reports. 2 In this report, retirement readiness means the projected ability for participants to replace 70% or more of their working income in retirement.
The content of this website is for general information only and is believed to be accurate and reliable as of the posting date, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice (unless otherwise indicated). Please consult your own independent advisor as to any investment, tax, or legal statements made herein.
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