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
News Market Reaction – TROW
In the Feb 11 session, TROW declined 2.95%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 04 | Earnings release | Neutral | -5.5% | Quarter and full-year 2025 financial results and webcast details. |
| Jan 29 | ETF launch | Positive | -0.4% | Launch of T. Rowe Price Innovation Leaders active ETF on NASDAQ. |
| Jan 28 | Outlook briefing | Positive | -0.1% | U.S. Retirement Market Outlook with themes on advice and regulation. |
| Jan 22 | Financing role | Positive | +0.9% | OHA joint lead arranger role in private unitranche financing for UFT deal. |
| Jan 22 | Product partnership | Positive | +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.
Recent strategic and product announcements for TROW have generally produced modest single-day price moves, while the latest earnings release coincided with a more pronounced negative reaction.
Over the past few weeks, TROW has reported several developments. An Feb 4, 2026 earnings release was followed by a -5.49% move. New product launches, including an innovation-focused active ETF on Jan 29, 2026 and the “Custom Premier” RIA solution on Jan 22, 2026, saw minor reactions around flat to slightly positive. A retirement outlook briefing on Jan 28, 2026 and OHA’s financing role on Jan 22, 2026 also produced small moves, underscoring generally contained responses to news.
Key Terms
catch-up contributions financial
automatic enrollment financial
small balance automatic distributions financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Firm's annual 401(k) benchmarking report reveals how advice and plan design can help drive better retirement outcomes
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 balances29% higher, and Roth savings rates6% 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 to15% 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 to67% 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
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SOURCE T. Rowe Price Group