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 by the Vanguard Group of Investment Cos., Valley Forge, Pa.
During the past 12 months, 54% of respondents said they had not made any changes. Only 1% of participants said they made 10 or more changes, 4% made between five and nine transfers, 12% made between three and four changes, and 29% said they reallocated account assets only once or twice.
Douglas E. Frey, assistant vice president, said the survey also found 73% wanted to speak to an operator when they used a telephone voice-response system. Just 27% said they wanted to use a fully automatic response system. Mr. Frey noted, however, that preference for automatic systems is likely to increase as the population becomes more technology literate.