Since its inception in 1997, the Alight Solutions 401(k) Index™ has provided a front row seat to the trading and investing behavior of millions of workers. Over the past 20 years, two major trends have emerged:
401(k) portfolio allocations have changed dramatically
Trading activity has steadily decreased except when market corrections occur
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A strong year for stocks saw moderate trading levels in 401(k) plans. There were 41 above-normal days, up significantly from 14 in 2023. Net trading activity also rose to 1.24% in 2024 from 0.82% in 2023.
Retirement investors reacted to a volatile fourth quarter on Wall Street with starts and stops. Following the post-election bump, trading activity was light with a string of over a month of average trading days.
Retirement plan investors were generally light traders in December, according to the Alight 401(k) IndexTM.
