July 15, 2019

Vanguard Study on Company Stock in Retirement Plans

Vanguard released its annual How America Saves 2019 report on the retirement behavior of American workers and employers that use its administration services. They found that 8% of its plans offered company stock as an option, although large plans were far more likely to offer company stock: 30% of employers with over 5,000 employees offer company stock. As a result, 24% of participants in Vanguard-administered plans have the option to invest in employer stock, although only 9% of participants currently have company stock in their accounts. The report found a long-term trend among employees at companies that offer stock away from continuing to hold company stock: among employees with the option to invest in company stock in their retirement plan, 55% choose to do in 2009, while 36% choose to in 2018.