T. ROWE PRICE: RETIREMENT SAVERS USING FINANCIAL ADVICE, EDUCATION, OR TOOLS HAVE TWICE THE AVERAGE ACCOUNT BALANCE THAN NON-USERS

Rhea-AI Summary

T. Rowe Price (NASDAQ: TROW) released its annual 401(k) benchmarking report, showing participants who use workplace financial advice, education, or tools save 29% more and have 2x the average account balance versus non-users; only 13.8% of participants use these resources. The report covers over 2 million plan participants and highlights higher Roth uptake, SECURE 2.0 adoption, catch-up contribution patterns, and the strong influence of plan design on participation.

Positive

• Participants using advice save 29% more than non-users
• Advice users have 2x the average account balance
• Plans offering Roth employer contributions see 30% higher Roth participation and 29% higher Roth balances
• SECURE 2.0 optional provisions adopted by 78% of plans
• Automatic enrollment plans: 99% of participants increase or maintain default savings

Negative

• Only 13.8% of participants use workplace advice, education, or tools
• Catch-up contributions largely used by savers already ahead: for below-average savers vs 15% for above-average savers

Argus Feb 11 session

-2.95% close to close Open Argus

Details

News Market Reaction – TROW

On Feb 11, the day this news came out, TROW closed 2.95% below the previous close.

Data tracked by StockTitan Argus for the Feb 11 session.

Market Context

This announcement emphasizes how engagement with workplace advice and tools correlates with stronger...

Analysis

This announcement emphasizes how engagement with workplace advice and tools correlates with stronger outcomes, including a 29% higher savings rate and broader SECURE 2.0 feature adoption across 78% of plans. It reinforces TROW’s focus on retirement services and plan design innovation. When assessing the impact, investors may watch trends in participant engagement, adoption of Roth and emergency savings features, and how these data points relate to TROW’s recordkeeping and retirement revenue over time.

Key Figures

Higher savings rate: 29% higher Advice tool usage: 13.8% Participant base: over 2 million +5 more

Higher savings rate

29% higher

Users of workplace advice, education, or tools vs non-users

Advice tool usage

13.8%

Participants currently using workplace financial advice, education, or tools

Participant base

over 2 million

Plan participants in T. Rowe Price full-service recordkeeping data

Roth participation uplift

30% higher

Roth participation in plans with Roth employer contribution vs without

Roth balance uplift

29% higher

Roth balances in plans with Roth employer contribution vs without

Roth savings uplift

6% higher

Roth savings rates in plans with Roth employer contribution vs without

Savings rate increase

1.4 percentage points

Average annual savings rate increase for participants in their 50s and 60s

SECURE 2.0 adoption

78%

Plans that have adopted at least one optional SECURE 2.0 provision

Historical Context

5 past events · Latest: Feb 04

5 events

1. Feb 04

   Earnings release

   24h Move

   -5.5%

   Quarter and full-year 2025 financial results and webcast details.

2. Jan 29

   ETF launch

   24h Move

   -0.4%

   Launch of T. Rowe Price Innovation Leaders active ETF on NASDAQ.

3. Jan 28

   Outlook briefing

   24h Move

   -0.1%

   U.S. Retirement Market Outlook with themes on advice and regulation.

4. Jan 22

   Financing role

   24h Move

   +0.9%

   OHA joint lead arranger role in private unitranche financing for UFT deal.

5. Jan 22

   Product partnership

   24h Move

   +0.9%

   Launch of Custom Premier personalized model portfolio solution with Vestmark.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

catch-up contributions, automatic enrollment, small balance automatic distributions

3 terms

catch-up contributions financial

"Catch-up Contributions are Mostly Used by Participants Who are Already Ahead"

Catch-up contributions are extra retirement-plan deposits that people above a certain age are allowed to make in addition to the regular contribution limit, like putting a few extra coins into a piggy bank as retirement nears. They matter to investors because they increase how much individuals can shelter from taxes and invest for the long term, affect household saving capacity, and can influence cash flows into retirement-linked investment vehicles and employer plan costs.

automatic enrollment financial

"In plans with automatic enrollment, 99% of participants either increase or maintain"

Automatic enrollment is a payroll feature that signs employees up for a company retirement or benefit plan by default, so contributions start automatically unless the worker opts out. Like being auto-subscribed to a newsletter but with money, it boosts participation and predictable savings behavior. Investors watch it because higher participation can lower turnover, change payroll costs and liabilities, and signal stronger employee benefits that may affect a company’s long-term financial health and reputation.

small balance automatic distributions financial

"higher catch-up limits, self-certified hardships, and small balance automatic distributions"

An administrative process where a broker, plan administrator or custodian automatically liquidates and pays out very small account balances or holdings without requiring the owner’s instruction. Think of it like a bank emptying a pocket-sized jar of loose change and sending you the cash; for investors this can trigger sales at current prices, potential tax withholding, fees, and loss of account protections or investment status, so it can affect portfolio value and tax paperwork.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Firm's annual 401(k) benchmarking report reveals how advice and plan design can help drive better retirement outcomes

BALTIMORE, Feb. 11, 2026 /PRNewswire/ -- T. Rowe Price, a global asset management firm and a leader in retirement, today released its annual 401(k) benchmarking report, Reference Point, featuring the latest trends and insights in plan design and participant behavior. This year's report spotlights a standout finding: participants who engage with the financial advice, education, or tools available through their workplace retirement site save at a rate that is 29% higher than non-users and have twice the average account balance. Meanwhile, only 13.8% of participants currently use these resources.

The report findings are based on T. Rowe Price's full-service recordkeeping client data, representing over 2 million plan participants.

"T. Rowe Price continually evaluates industry and participant trends to anticipate future needs in a rapidly changing financial landscape," said Francisco Negrón, head of Retirement Plan Services at T. Rowe Price. "This year's data shines a light on how personalized guidance and advice are pivotal for retirement readiness. As the economic environment continues to challenge retirement savers, equipping them with financial tools and support is more important than ever."

Additional key findings include:

• Roth Contributions Continue to Rise: Plans offering a Roth employer contribution see Roth participation rates 30% higher, Roth balances 29% higher, and Roth savings rates 6% higher than plans without a Roth match. Younger participants are especially likely to take advantage of Roth options.
• Participants Save More Aggressively Leading up to Retirement: Participants in their 50s and 60s are more likely to increase their savings rates and make active investment changes rather than staying in the plan defaults. In fact, participants in this age group increase their savings rate by an average of 1.4 percentage points annually, outpacing the typical automatic increase defaults.
• Catch-up Contributions are Mostly Used by Participants Who are Already Ahead: Less than 2% of participants with below average retirement savings make catch-up contributions, compared to 15% who already have above-average savings.
• SECURE 2.0 Adoption is Accelerating: Seventy-eight percent of plans have adopted at least one optional SECURE 2.0 provision, with higher catch-up limits, self-certified hardships, and small balance automatic distributions among the most popular.
• Emergency Savings Features are Linked to Stronger Plan Participation: Plans offering emergency expense withdrawals show a 76% participation rate compared to 67% in plans without them.
• Plan Design Matters: In plans with automatic enrollment, 99% of participants either increase or maintain their default savings rate, underscoring the long-term impact of plan design.

Negrón adds, "We publish our retirement benchmarking data each year to equip plan sponsors, consultants, and the broader industry with insights that can have a direct impact on outcomes. Our mission remains the same: to support and inspire hardworking people to prepare for and thrive in retirement. The evidence is stronger than ever that advice, thoughtful plan design, and innovation drive meaningful progress."

ABOUT T. ROWE PRICE

T. Rowe Price (NASDAQ-GS: TROW) is a leading global asset management firm, entrusted with managing $1.80 trillion in client assets as of January 31, 2026, about two-thirds of which are retirement-related. Renowned for over 85 years of investment excellence, retirement leadership, and independent proprietary research, the firm leverages its longstanding expertise to ask better questions that can drive better investment decisions. Built on a culture of integrity and prioritizing client interests, T. Rowe Price empowers millions of investors worldwide to thrive amidst evolving markets. Visit troweprice.com/newsroom for news and public policy commentary.

View original content to download multimedia:https://www.prnewswire.com/news-releases/t-rowe-price-retirement-savers-using-financial-advice-education-or-tools-have-twice-the-average-account-balance-than-non-users-302685157.html

SOURCE T. Rowe Price Group

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much more do retirement savers using workplace advice save compared to non-users for TROW?

Users of workplace financial advice save 29% more than non-users. According to T. Rowe Price, this group also holds twice the average account balance, based on data from over 2 million plan participants.

What share of participants use financial advice, education, or tools in T. Rowe Price's 2026 report (TROW)?

Only 13.8% of participants currently use those workplace resources. According to T. Rowe Price, low adoption persists despite clear links between advice use and higher savings and balances.

How has Roth participation and balances changed in plans offering Roth employer contributions (TROW)?

Plans with a Roth employer contribution show 30% higher Roth participation and 29% higher Roth balances. According to T. Rowe Price, younger participants are especially likely to use Roth options.

What level of SECURE 2.0 adoption did T. Rowe Price report for retirement plans (TROW)?

78% of plans have adopted at least one optional SECURE 2.0 provision. According to T. Rowe Price, popular provisions include higher catch-up limits, self-certified hardships, and small-balance automatic distributions.

How do participants near retirement change savings behavior according to T. Rowe Price (TROW)?

Participants in their 50s and 60s increase savings and make active investment changes rather than rely on defaults. According to T. Rowe Price, they raise savings by about 1.4 percentage points annually on average.