Even with unlimited transfer abilities within their 401(k) accounts, most plan participants do not change their investment allocations often, according to a recent survey of participants conducted by the Vanguard Group of Investment Cos., Valley Forge, Pa.
Fifty-four percent of respondents said they had not made any changes over the past 12 months. Only 1% made 10 or more changes for the same period; 4% made between five and nine transfers; 12% made between three and four changes; and 29% said they reallocated assets one or two times.
Douglas E. Frey, assistant vice president at Vanguard, said the survey found 73% of respondents wanted to speak with a telephone operator when they used a voice-response system, with 27% choosing a fully automated response system. Mr. Frey noted, however, that a preference for automated systems is likely to increase as technology literacy grows.