While 401(k) participants haven't stopped contributing to their retirement accounts, the average rate of savings has declined by 1.6 percentage points, according to research from MassMutual. Older participants have made bigger cuts than their younger counterparts, but, their savings rates tend to be higher. Participation rates continue to rise, most likely due to the prevalence of automatic enrollment; the number of plans adopting auto-enrollment has increased approximately 10 percent since September 2008.
Technology is a driving force in participation. Participants who checked their balances online increased 270 percent in December 2008 versus the same period a year prior. Call center volume increased 29 percent. While the total number of participant contacts declined for the year, the total live calls increased by 10 percent; calls regarding investments showed the greatest increase, rising 208 percent in October 2008 vs. the same month in 2007.
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