workers added to the
retirement system in 2020
< 1.4M
the amount is paid by participants
in smaller plans compared to those in larger plans
2x
decrease in active
defined-benefit participants
20%
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Compared to the more than 2.1M participants added in 2021. The
2020 rate of growth marked the first time since 2013 that growth was
so low. However, 2021’s return to pre-pandemic growth rates shows
a strong rebound in the economy.
Costs to participants in DC plans
are trending down, but those in smaller plans continue to pay much more in fees than those in larger plans. Workers at smaller employers potentially have 9% less saved
at retirement because of this.
The Covid-19 pandemic accelerated the decline of the already-shrinking DB system due to employers soft freezing their plans. The system hasn’t seen shrinkage this large since 2012, when only 12% of active participants decreased.
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