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Leakage of Participants’ DC Assets: How Loans, Withdrawals, and Cashouts Are Eroding Retirement Income

AON Hewitt

"This report explores the magnitude of the [leakage] problems, their impact to participant savings and ideas to curb these behaviors. More than 1.8 million employees were examined across over 110 large defined contribution plans. Participant data was analyzed through year-end 2010. Additionally, the Aon Hewitt 2010 Employer Perspectives on Defined Contribution Plan Leakage Survey was deployed in October 2010 to gauge employer sentiment and plans related to leakage issues (in total, 200 plan sponsors responded). Finally, Employee Benefit Research Institute (EBRI) provided modeling as to the impact of employee actions through its EBRI Retirement Security Projection Model®."

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