Contribution, Asset Allocation, Loan and Withdrawal Activity Among Retirement Savers Remarks for the Dartmouth College Symposium How to Increase Effectiveness of Financial Education Sarah Holden Investment Company Institute Jack VanDerhei Temple University, EBRI Fellow October 17, 2005

2 OverviewOverview 401(k) Participants  The Participation Decision  Contributions  Asset Allocation  Loans and Withdrawals What Can 401(k) Accumulations Generate at Retirement? IRA Owners  The Participation Decision  Contributions  Asset Allocation  Withdrawals Appendix  Job Change and Retirement Bibliography

3 The 401(k) Participation Decision Choi, Laibson, Madrian & Metrick (July 2004) Fidelity Investments (2004) Automatic enrollment increases participation rates, especially among lower income workers (see Holden & VanDerhei (July 2005) for discussion and references) ICI (Spring 2000) 401(k) Household Survey Asked Why Participated and Why Didn’t

4 Reasons for Participating in the 401(k) Plan 1, Percent of 401(k) plan participants indicating reason was “very important.” 2 Multiple responses included. Number of respondents varies. 3 Asked of those offered the feature. Source: Investment Company Institute, 401(k) Plan Participants: Characteristics, Contributions, and Account Activity, Spring

5 Reasons for Not Participating in the 401(k) Plan 1,2 1 Percent of 401(k) plan non-participants indicating reason was “very” or “somewhat” important. 2 Multiple responses included. Number of respondents varies. Source: Investment Company Institute, 401(k) Plan Participants: Characteristics, Contributions, and Account Activity, Spring 2000

6 401(k) Plan Education Primary Purpose 401(k) Plan Education Primary Purpose (percent of plans) Increase Participation Other Increase Employee Appreciation for the Plan Introduce Plan Changes Improve Asset Allocation Increase Deferrals (Employee Contributions) Note: Components do not add to 100 percent because of rounding. Source: Profit Sharing/401(k) Council of America (PSCA), 48 th Annual Survey of Profit Sharing and 401(k) Plans: Reflecting 2004 Plan Experience, 2005

7 EBRI/ICI Participant-Directed Retirement Plan Data Collection Project Collaborative effort of the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI) Have collected annual data for 1996–2004 from a variety of recordkeepers covering a variety of plans 16.3 million 401(k) participants in 2004 (38% of the 401(k) universe) 45,783 plans in 2004 (10% of universe) $926.2 billion in assets in 2004 (44% of universe) Representative sample of the universe Analyze account balances, asset allocation, and loan activity in annual updates. Special Reports—contribution activity, EBRI/ICI 401(k) Accumulation Projection Model Source: Tabulations from the EBRI/ICI Participant-Directed Retirement Plan Data Collection Project (see Holden & VanDerhei (September 2005 and September 2005—Appendix))

8 401(k) Plan Participant Contribution Activity What influences 401(k) plan participants’ contribution activity? 401(k) Participants Respond to “Corner” Points  EGTRRA Catch-Up Contributions  Automatic Enrollment Defaults  Internal Revenue Code Limit  Match Level for Employer Contribution Age Loan Provision Tenure Employer Match Income Limits and Nondiscrimination Testing

9 Among Participants Making Contributions, Percentage of Participants at 402(g) Limit by Salary 1,2 Non-Highly Compensated Employees Highly Compensated Employees 1 Percent of participants in salary range. 2 Excludes participants earning less than $40,000 a year because another IRC limit prevented them from reaching the §402(g) limit. Tabulated from a sample of 0.8 million participants. Source: Tabulations from the EBRI/ICI Participant-Directed Retirement Plan Data Collection Project (see Holden & VanDerhei (October 2001))

10 401(k) Participants Contributing at Employer Contribution Match Level by Salary 1,2 Non-Highly Compensated Employees Highly Compensated Employees 1 Percent of participants in salary range. Contributions in Sample of nearly 1 million participants (whether contributing or not) for whom employer matching contribution information was provided or derived. Source: Tabulations from the EBRI/ICI Participant-Directed Retirement Plan Data Collection Project (see Holden & VanDerhei (October 2001))

11 401(k) Participants’ Asset Allocation What influences 401(k) plan participants’ asset allocations? EBRI/ICI database analyses 401(k) participant asset allocation by age, tenure, salary, plan size, and investment option. 401(k) plans generally have lots of investment options. EBRI/ICI Research* finds:  Participants are offered 10.4 options, on average,  But, 2.5 options are chosen, on average.  Participants are not “naïve” – less than 1% had followed 1/n.  The more equity options, the higher the allocation to equity funds. Age Recent Mkt. Returns Income Family Plan Materials/Design Other? Education Number of Investments *See Holden & VanDerhei (May 2001).

12 401(k) Participants Now More Likely to Choose Balanced Funds 1, (k) plan average asset allocation among participants with two or fewer years of tenure, percent of total. Minor investment options are not shown; therefore, column percentages do not add to 100 percent. 2 Drawn from samples of 1.2 million participants with two or fewer years of tenure in 1998 and 1.8 million participants with two or fewer years of tenure in Fixed-Income investments include bond funds, guaranteed investment contracts (GICs) and other stable value funds, and money funds. 4 “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security indicated. 5 Balanced funds include lifestyle and lifecycle funds. Source: Tabulations from the EBRI/ICI Participant-Directed Retirement Plan Data Collection Project (see Holden & VanDerhei (September 2005)) 3 4 4,5

13 401(k) Loan and Withdrawal Activity Loans  Loans widely available  Loan option increases employee participation and contributions  Loans rarely taken Withdrawals  Safe harbor  Generally subject to taxes and penalty  Withdrawals very rarely taken Sources: Utkus (July 2005), Holden & VanDerhei (November 2002—Appendix), Holden & VanDerhei (October 2001), ICI (Spring 2000), U.S. Government Accountability Office (October 1997)

14 Loans Are Widely Available…But Rarely Taken from 401(k) Plans Among 401(k) participants with loans, the level of the unpaid balance represented 13 percent of the account balance (net of the unpaid loan balance) at year-end Have Taken Out a Loan Participants in Plans Offering Loans Source: Tabulations from the EBRI/ICI Participant-Directed Retirement Plan Data Collection Project (see Holden & VanDerhei (September 2005))

15 Few 401(k) Participants Take Hardship Withdrawals * *Percent of 401(k) participants whose plans allow hardship withdrawals. Source: Investment Company Institute, 401(k) Plan Participants: Characteristics, Contributions, and Account Activity, Spring 2000 (see also Holden & VanDerhei (November 2002—Appendix))

16 Basic Elements of the EBRI/ICI 401(k) Accumulation Projection Model Start at Year-End (k) Account Balance Asset Allocation Loan Balance Annual Income Participant Activity Inside the 401(k) Plan Participant Behavior Over Working Career Source: EBRI/ICI 401(k) Accumulation Projection Model (see Holden & VanDerhei (July 2005, November 2002, and November 2002—Appendix)) Project for Each Participant: Account Balances and Income Until Age 65 At Age 65 – Calculate Median Replacement Rate

17 Basic Model Elements: Participant Activity Inside the 401(k) Plan Contributions? Amount Contributed? Loans? Amount Borrowed? 401(k) Withdrawal? Amount Withdrawn? Asset Allocation Rebalance Portfolio Investment Returns Source: EBRI/ICI 401(k) Accumulation Projection Model

18 Basic Model Elements: Participant Behavior Over Working Career Change Jobs? Leave Balance, Cash Out, or Roll Over? Rollover IRA? Asset Allocation, Investment Returns, IRA Withdrawals? Source: EBRI/ICI 401(k) Accumulation Projection Model

19 Median Replacement Rates for Participants Turning 65 Between 2030 and 2039 by Income Quartile at Age Percent of final five-year average salary. 2 The 401(k) accumulation includes 401(k) balances at employer(s) and rollover IRA balances. Source: Tabulations from the EBRI/ICI 401(k) Accumulation Projection Model (see Holden & VanDerhei (July 2005)) 2 2

20 Change in Median Replacement Rates from 401(k) Accumulations for Participants Reaching Age 65 Between 2030 and 2039, by Income Quartile at 65 ScenarioLowestSecondThird Highest Baseline Change 3 Always contributing Loans never taken No 401(k) withdrawals Stochastic coverage No cashouts No IRA withdrawals The 401(k) Accumulation includes 401(k) balances at employer(s) and rollover IRA balances. 2 Percent of final five-year average salary (median). 3 Percentage points. Source: EBRI/ICI 401(k) Accumulation Projection Model (see Holden & VanDerhei (November 2002))

21 Median Replacement Rates 1 from 401(k) Accumulations 2 for Workers Turning 65 Between 2030 and 2039 by Income Quartile at Age In all three simulations presented in this figure, workers experience continuous employment, continuous 401(k) plan coverage, and investment returns based on average annual returns between 1926 and While in the baseline, only 401(k) participants with account balances at year-end 2000 are considered; here, all eligible workers are considered. 2 The 401(k) accumulation includes 401(k) balances at employer(s) and rollover IRA balances. 3 Percent of final five-year average salary. Source: EBRI/ICI 401(k) Accumulation Projection Model (see Holden & VanDerhei (July 2005))

22 History of IRAs Facilitate a Commitment to Saving  Tax incentives  Behavioral finance Simplicity—Universal IRA Flexibility—Rollovers and Contributions

23 The IRA Participation Decision IRAs—Very Low Participation Rates  Sailer and Holden (August 2004)  Contribution Activity Varies with Age, Income IRA Contributions at “Corner” Points  Internal Revenue Code Limit  EGTRRA Catch-Up Contributions

24 Deductible Contributions to Traditional IRAs,* 1981–1987 and 2002 Deductible Contributions to Traditional IRAs,* 1981–1987 and 2002 (billions of dollars) *Deductible IRA contributions reported on individual income tax returns (Form 1040). Sources: IRS, Statistics of Income Division, Individual Income Tax Returns, Publication 1304, various years and SOI Bulletin, various issues (see Holden, Ireland, Leonard-Chambers, and Bogdan (February 2005))

25 Percent of All Taxpayers by Eligibility for IRA Deductions Full Roth Contribution Instead 2% Eligible, Taking Traditional IRA Deduction 2% Eligible, Not Taking Deduction 65% No Taxable Compensation 12% Covered* and Above Income Limit 17% Older than 70 ½ 2% *Covered by a qualified employer-sponsored plan. Source: Matched File of Income Tax Returns, Forms 5498, and 1099-R for Tax-Year 2001 (see Sailer & Holden (August 2004))

26 IRA Contribution Decision IRA Contributions at “Corner” Points  Among those making contributions to IRAs, more than half contributed at the limit (through 2001). EGTRRA Catch-Up Contributions  Percentage of Contributing IRA Owners Age 50 or Older Source: ICI Annual Owners Survey (see Holden, Ireland, Leonard-Chambers, and Bogdan (February 2005)) Traditional IRA Roth IRA

27 Traditional IRAs Traditional IRAs (billions of dollars) p e p=preliminary e=estimate Sources: Investment Company Institute, U.S. Internal Revenue Service Statistics of Income Division and SOI Bulletin, various issues (see ICI (August 2005— Appendix)) Market Value of Assets Rollovers Contributions

28 IRA Owners’ Asset Allocations IRA asset allocation varies with age. In 2004, 46 percent of households with traditional IRAs had rollovers in their IRAs (ICI (February 2005)). IRA owners hold a variety of assets (see Holden, Ireland, Leonard-Chambers, and Bogdan (February 2005)). Households with IRAs and 401(k) accounts are heavily invested in equities in both (see Copeland (January 2004)).

29 1%3%5%Other 100% 16%15%6%Mixed 31%28%15%CDs/Money Market Funds 20%11%4%Bonds 32%43%70%Stocks/Mutual Funds 70+60s20s How Is Your IRA or Keogh Account Invested? IRA Asset Allocation by Age of Household IRA Asset Allocation by Age of Household (percent of U.S. households) Source: ICI tabulations of the Federal Reserve Board’s 2001 Survey of Consumer Finances

30 IRA Withdrawal Activity IRAs  Loans are not allowed  Withdrawals permitted; often with penalty  Withdrawals rarely taken

31 Few Households with IRAs Take Withdrawals * *Percent of households with traditional IRAs. Withdrawal activity in any given year on average between 1999 and Source: ICI Annual IRA Owners Surveys (see Holden, Ireland, Leonard-Chambers, and Bogdan (February 2005))

32 Reasons for IRA Withdrawals When Under Age 59 1,2 1 Percent of households taking traditional IRA withdrawals. Results pooled over 2000 through 2004 survey years covering withdrawal activity in 1999 to Multiple responses. Source: ICI Annual IRA Owners Survey (see Holden, Ireland, Leonard-Chambers, and Bogdan (February 2005))

33 Reasons for IRA Withdrawals When 70 or Older 1,2 1 Percent of households taking traditional IRA withdrawals. 2 Multiple responses. Source: ICI Annual IRA Owners Survey (see Holden, Ireland, Leonard-Chambers, and Bogdan (February 2005))

34 AppendixAppendix Total Retirement Market Participation Decision 401(k) Asset Allocation 401(k) Loans and Withdrawals Job Change and Retirement

35 Total Retirement Market Year-End 2004 Assets 1 (billions of dollars) IRAs3,475 Defined contribution plans 2 3,228 Private defined benefit plans1,846 State and local government plans2,585 Federal defined benefit plans 3 1,024 Annuities 4 1,246 Total Retirement Market13,404 1 Components do not add to total because of rounding. 2 Includes private employer-sponsored defined contribution plans, 403(b) plans, and 457 plans. 3 Includes U.S. Treasury security holdings of the civil service retirement and disability fund, the military retirement fund, the judicial retirement funds, the Railroad Retirement Board, and the foreign service retirement and disability fund. Also includes securities held in the National Railroad Retirement Investment Trust and the Federal Employees Retirement System (FERS) Thrift Savings Plan (TSP). 4 All fixed and variable annuity reserves at life insurance companies less annuities held by IRAs, 457 plans, 403(b) plans, and private pension funds. Sources: Investment Company Institute, Federal Reserve Board, National Association of Government Defined Contribution Administrators, American Council of Life Insurers, and Internal Revenue Service (see ICI (August 2005) and Flow of Funds Accounts, Z.1 Release (September 21, 2005))

36 Employer Changes that Could Improve 401(k) Plan Participation 1,2 1 Percent of 401(k) plan nonparticipants “very” or “somewhat” likely to enroll if each change is made. 2 Multiple responses included. Number of respondents varies. Source: Investment Company Institute, 401(k) Plan Participants: Characteristics, Contributions, and Account Activity, Spring 2000

37 Most Common Types of Education 1 Provided by Plan Sponsors 2 1 Communication techniques used to accomplish primary education goal. Multiple responses included. For other types of education mentioned, see the report. 2 Percent of plans. Source: Profit Sharing/401(k) Council of America (PSCA), 48 th Annual Survey of Profit Sharing and 401(k) Plans, Reflecting 2004 Plan Experience, 2005

38 Average Asset Allocation in 2004, by Participant Age 1 73% 55% 1 Percent of total assets. Components may not add to 100 percent because of rounding. 2 “Funds” include mutual funds, life insurance separate accounts, bank collective trusts, and any pool of assets primarily invested in the investment objective indicated. Source: Tabulations from the EBRI/ICI Participant-Directed Plan Data Collection Project (see Holden & VanDerhei (September 2005))

39 Percent of Assets Allocated to Equity Funds Varies Widely Among 401(k) Participants 1,2 >80 Percent Zero 1 to 20 Percent >20 to 40 Percent >40 to 60 Percent >60 to 80 Percent 1 Asset allocation distribution of 401(k) participant account balance to equity funds, percent of participants, Includes the 16.3 million participants in the year-end 2004 EBRI/ICI database. Components do not add to 100 percent because of rounding. Source: Tabulations from the EBRI/ICI Participant-Directed Retirement Plan Data Collection Project (see Holden & VanDerhei (September 2005))

40 Distribution of 401(k) Plans by Number of Investment Options Offered 1,2 2 to 5 Options 11 or More Options 6 Options 7 Options 8 Options 9 Options 10 Options 1 Percent of plans. 2 Sample of about 23,500 plans with 1.4 million participants drawn from the year-end 2000 EBRI/ICI database. Median number of options offered is 10; average is Median number of options chosen is 2; average is 2.5. Source: Tabulations from the EBRI/ICI Participant-Directed Retirement Plan Data Collection Project (see Holden & VanDerhei (May 2001))

41 Distribution of Participants by Number of Investment Options Offered and Chosen 1,2 1 Percent of participants in row. Row percentages may not add to 100 percent because of rounding. 2 Sample of about 23,500 plans with 1.4 million participants drawn from the year-end 2000 EBRI/ICI database. Source: Tabulations from the EBRI/ICI Participant-Directed Retirement Plan Data Collection Project (see Holden & VanDerhei (May 2001)) or more 2 to to or more Total Number Chosen by 401(k) Participant Number Offered

42 Reasons for Taking Most Recent 401(k) Plan Loan 1,2 1 Percent of 401(k) plan participants who have taken a loan from current plan. 2 Multiple respondents included. Source: Investment Company Institute, 401(k) Plan Participants: Characteristics, Contributions, and Account Activity, Spring 2000

43 Reasons for 401(k) Hardship Withdrawals 1,2 1 Percent of 401(k) plan participants who have taken a hardship withdrawal from current plan. 2 Multiple responses. Source: Investment Company Institute, 401(k) Plan Participants: Characteristics, Contributions, and Account Activity, Spring 2000

44 Households’ Asset Allocation Among Households with Both IRAs and 401(k)-Type Plans 1,2 Asset ClassIRAs 401(k)-Type Plans Mostly Stock65.0%61.1% Mostly Interest-Earning20.8% 7.5% Split13.5%31.4% Other 0.7% 1 Percentage of assets in account type indicated. 2 Some of the differences in asset type between the two account types is due to the differing format of the question asked across the two account types. Source: EBRI Tabulations of the 2001 Survey of Consumer Finances (see Copeland (January 2004))

45 Changing Jobs—Tenure Distribution of Workers Age 55 to 64* *Percent of workers; percentages do not add to 100 percent because of rounding. Source: U.S. Department of Labor, Bureau of Labor Statistics, Employee Tenure in 2004, September 21, 2004

46 Workers’ Behavior at Job Change— Rollover of Entire Balance * *Percent of workers receiving lump-sum distributions. Source: ICI Tabulations of Survey of Income and Program Participation (SIPP) 2001 Panel, Pension Module; Data for 2003

47 Workers’ Behavior at Job Change— Rollover of Entire Balance * *Percent of workers receiving lump-sum distributions. Source: ICI Tabulations of Survey of Income and Program Participation (SIPP) 2001 Panel, Pension Module; Data for 2003 Size of Lump-Sum Distribution

48 Workers’ Behavior at Job Change— Rollover of Entire Balance * Age at Time of Distribution *Percent of workers receiving lump-sum distributions. Source: ICI Tabulations of Survey of Income and Program Participation (SIPP) 2001 Panel, Pension Module; Data for 2003

49 Defined Contribution Plan Distribution Decision at Retirement 1 Distribution Options Selected at Retirement by Retirees Having More than One Option 2 1 Individuals retired from a defined contribution plan between 1995 and Multiple responses included. Data as of May Percent of respondents who had multiple options. Source: Investment Company Institute, “Financial Decisions at Retirement,” ICI Fundamentals, November 2000

50 BibliographyBibliography Choi, James J., David Laibson, Brigitte C. Madrian, and Andrew Metrick. “Saving for Retirement on the Path of Least Resistance,” Originally prepared for Tax policy and the Economy 2001, updated draft July 19, Copeland, Craig. “Retirement Plan Participation and Asset Allocation,” EBRI Notes, Vol. 25, No. 1, Washington, DC: Employee Benefit Research Institute, January 2004: pp Federal Reserve Board. Survey of Consumer Finances, available at:. Federal Reserve Board. Flow of Funds Accounts of the United States, Z.1 Release. Washington, DC: Federal Reserve Board, September 21, Fidelity Investments. Building Futures, Volume V: How Workplace Savings Are Shaping the Future of Retirement (A Report on Corporate Defined Contribution Plans). Boston, MA: Fidelity Investments, Holden, Sarah, and Jack VanDerhei. “401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2004,” ICI Perspective, Vol. 11, No. 4, and EBRI Issue Brief, No. 285, Washington, DC: Investment Company Institute and Employee Benefit Research Institute, September Holden, Sarah, and Jack VanDerhei. “Appendix: Additional Figures for the EBRI/ICI Participant- Directed Retirement Plan Data Collection Project for Year-End 2004,” ICI Perspective, Vol. 11, No. 4A, Washington, DC: Investment Company Institute, September 2005-Appendix.

51 BibliographyBibliography Holden, Sarah, and Jack VanDerhei. “The Influence of Automatic Enrollment, Catch-Up, and IRA Contributions on 401(k) Accumulations at Retirement,” ICI Perspective, Vol. 11, No. 2, and EBRI Issue Brief, No. 283, Washington, DC: Investment Company Institute and Employee Benefit Research Institute, July Holden, Sarah, Kathy Ireland, Vicky Leonard-Chambers, and Michael Bogdan. “The Individual Retirement Account at Age 30: A Retrospective,” ICI Perspective, Vol. 11, No. 1. Washington DC: Investment Company Institute, February Holden, Sarah, and Jack VanDerhei. “Can 401(k) Accumulations Generate Significant Income for Future Retirees?” ICI Perspective, Vol. 8, No. 3, and EBRI Issue Brief, No. 251, Washington, DC: Investment Company Institute and Employee Benefit Research Institute, November Holden, Sarah, and Jack VanDerhei. “Appendix: EBRI/ICI 401(k) Accumulation Projection Model,” ICI Perspective, Vol. 8, No. 3A, Washington, DC: Investment Company Institute, November 2002-Appendix. Holden, Sarah, and Jack VanDerhei. “Contribution Behavior of 401(k) Plan Participants,” ICI Perspective, Vol. 7, No. 4, and EBRI Issue Brief, No. 238, Washington, DC: Investment Company Institute and Employee Benefit Research Institute, October 2001.

52 BibliographyBibliography Holden, Sarah, and Jack VanDerhei. “The Impact of Employer-Selected Investment Options on 401(k) Plan Participants’ Asset Allocations: Preliminary Findings,” Working Paper prepared for The Center for Pension and Retirement Research (CPRR) Current Pension Policy Issues Conference, at Miami University, Oxford, OH, June 8-9, 2001: Draft, May Investment Company Institute. “Mutual Funds and the U.S. Retirement Market in 2004,” ICI Fundamentals, Vol. 14, No. 4, Washington, DC: Investment Company Institute, August Investment Company Institute. “Appendix: Additional Data on Mutual Funds and the U.S. Retirement Market in 2004,” ICI Fundamentals, Vol. 14, No. 4A, Washington, DC: Investment Company Institute, August 2005-Appendix. Investment Company Institute. “IRA Ownership in 2004,” ICI Fundamentals, Vol. 14, No. 1, Washington, DC: Investment Company Institute, February Investment Company Institute. “Financial Decisions at Retirement,” ICI Fundamentals, Vol. 9, No. 6, Washington, DC: Investment Company Institute, November Investment Company Institute. “Defined Contribution Plan Distribution Choices at Retirement: A Survey of Employees Retiring Between 1995 and 2000,” ICI Research Series, Washington, DC: Investment Company Institute, Fall 2000.

53 BibliographyBibliography Investment Company Institute. “401(k) Plan Participants: Characteristics, Contributions, and Account Activity,” ICI Research Series, Washington, DC: Investment Company Institute, Spring Profit Sharing/401(k) Council of America (PSCA). 48 th Annual Survey of Profit Sharing and 401(k) Plans: Reflecting 2004 Plan Experience. Chicago, IL: Profit Sharing/401(k) Council of America, Sailer, Peter, and Sarah Holden. “Use of Individual Retirement Arrangements to Save for Retirement-Results From a Matched file of Tax Returns and Information Documents for Tax Year 2001,” Presented at the 2004 American Statistical Association Meetings, Washington, DC: Internal Revenue Service Statistics of Income Division, August 2004 (available at: ). U.S. Census Bureau. Survey of Income and Program Participation, available at:. U.S. Department of Labor, Bureau of Labor Statistics, Employee Tenure in September 21, U.S. Government Accountability Office (GAO; formerly General Accounting Office). “401(k) Pension Plans: Loan Provisions Enhance Participation But May Affect Income Security for Some,” Letter Report, 10/01/97, GAO-HEHS-98-5, Washington, DC: U.S. Government Accountability Office, October 1997.

54 BibliographyBibliography Utkus, Stephen P. “The question of loans,” Presented at 2005 US-UK Dialogue on Pensions, July 19-21, 2005, in Washington, DC: July 21, Utkus, Stephen P., and Gary R. Mottola. Catch-Up Contributions in 2004: Plan Sponsor and Participant Adoption. Valley Forge, PA: The Vanguard Center for Retirement Research and The Vanguard Group, April 2005.