Participants in 403(b) retirement plans contribute less and are not as aggressive with their investments as their 401(k) counterparts, according to a Spectrem Group survey released today.
The survey showed 38% of 403(b) participants defer 6% or more of their earnings into their retirement plans compared to 48% of 401(k) participants. In addition, the proportion of 403(b) participants eligible to make catch-up contributions is half that of 401(k) participants.
Also, 52% of 403(b) participants describe their investment strategy as very or somewhat conservative, compared to 43% of 401(k) participants.
Those enrolled in 403(b) plans are twice as likely as those in the 401(k) group to receive no employer contributions at all, the survey showed. And while 74% of 401(k) participants receive an employer match, only 57% of 403(b) participants receive one.
The results of the survey, conducted in May and June with a total of 401 participants in 401(k) and 403(b) plans, were summarized in the report, Participants in 401(k) and 403(b): Are They Different?