It's a sign of the times: As baby boomers reach retirement age, withdrawals from 401(k) plans are now exceeding new contributions. Investors pulled a net $11.4 billion from tax-deferred savings plans in 2013, the most recent year for which we have full data, according to an analysis by BrightScope Inc.
As recently as 2011, there was a net inflow of more than $25 billion to the nation's 401(k) plans. In 2012, the positive inflow was about $11 billion, roughly the same amount as the deficit the following year.
Financial-services research firm Cerulli Associates projects that the outflows will persist at least until 2019, when investors will pull an estimated $51.6 billion. The number of Americans reaching retirement age this year is expected to hit 3.5 million, up from 2.7 million in 2010.
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