With a cautious stock market still reeling from COVID, it should come as no shock that trading within 401(k) accounts is low.
Trading activity in 401(k) retirement plan accounts was “remarkably light” in the second quarter of 2021, according to data compiled by Alight Solutions.
Net trades for the quarter only amounted to 0.16% of balances, which they claim is the lowest quarterly figure in the almost 25 years that the company has been tracking the figures. For the past 23 years, trading activity averaged 0.88% of balances.
With so many people out of work and trepidation on whether the pandemic will continue, this is not surprising.