T. Rowe Price Releases Annual 401(k) Benchmarking Report Highlighting Key Trends
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
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Should l Buy TROW?
Source: Newsfilter
- Increased Savings Rates: The report reveals that participants engaging with financial advice save at a rate 29% higher than non-users, with their average account balance being twice as much, highlighting the critical role of financial education in retirement readiness.
- Roth Contributions on the Rise: Plans offering Roth employer contributions see participation rates 30% higher and Roth balances 29% higher, indicating a growing preference among younger participants for Roth options.
- Changing Savings Behavior Pre-Retirement: Participants in their 50s and 60s increase their savings rates by an average of 1.4 percentage points annually, demonstrating a proactive approach to investment changes that surpasses typical automatic increases.
- Accelerated Adoption of SECURE 2.0: With 78% of plans adopting at least one SECURE 2.0 provision, the industry shows a strong commitment to enhancing retirement savings, particularly through higher catch-up limits and automatic distributions for small balances.
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Analyst Views on TROW
Wall Street analysts forecast TROW stock price to rise
7 Analyst Rating
0 Buy
4 Hold
3 Sell
Moderate Sell
Current: 93.160
Low
102.00
Averages
113.83
High
128.00
Current: 93.160
Low
102.00
Averages
113.83
High
128.00
About TROW
T. Rowe Price Group, Inc. is a financial services holding company that provides global investment advisory services to investors. It provides a range of investment solutions across equity, fixed income, multi-asset, and alternative capabilities for clients from individuals to advisors to institutions to retirement plan sponsors. It also provides certain investment advisory clients with related administrative services, including distribution, mutual fund transfer agent, accounting, and shareholder services; participant recordkeeping and transfer agent services for defined contribution retirement plans; brokerage; trust services, and non-discretionary advisory services through model delivery. It distributes its array of active investment solutions through a diverse set of distribution channels and vehicles. These vehicles include an array of U.S. mutual funds, collective investment trusts, exchange-traded funds, subadvised funds, separately managed accounts, and other sponsored products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Stable Dividend Growth Investment Opportunities
- American States Water Overview: American States Water (AWR) has paid dividends since 1931 and has raised them annually for 70 years, making it a Dividend King with a current yield of 2.7%, reflecting its strong financial health.
- T. Rowe Price Growth Potential: T. Rowe Price (TROW) manages $1.78 trillion in assets, offering a dividend yield of 5.3%, and has reduced its payout ratio from 71.6% to 55%, enhancing its appeal as a steady growth stock.
- PepsiCo's Risk and Reward: PepsiCo (PEP) paid $7.92 billion in dividends in 2025, with a payout ratio of 105%, yet its revenue grew by 5.6% in Q4, indicating future growth potential despite cash flow pressures from acquisitions.
- Diversifying Dividend Portfolio: By combining the stability of American States Water, the high yield of T. Rowe Price, and the growth potential of PepsiCo, investors can create a diversified dividend portfolio to mitigate risk and enhance returns.
See More
T. Rowe Price Releases Annual 401(k) Benchmarking Report
- Increased Savings Rate: T. Rowe Price's report reveals that participants engaging with financial advice and tools through their workplace retirement site save at a rate 29% higher than non-users, indicating that effective financial guidance can significantly enhance retirement readiness.
- Account Balance Comparison: The report highlights that the average account balance of participants is twice that of non-users, underscoring the importance of financial education and tools in boosting retirement savings, despite only 13.8% of participants currently utilizing these resources.
- Broad Data Foundation: The findings are based on T. Rowe Price's full-service recordkeeping client data, representing over 2 million plan participants, ensuring the reliability and representativeness of the results to aid plan sponsors and consultants in making informed decisions.
- Industry Trend Insights: The head of Retirement Plan Services at T. Rowe Price emphasizes that personalized guidance and innovative design are crucial for retirement preparedness, highlighting the increasing necessity of providing financial tools and support amid changing economic conditions.
See More
T. Rowe Price Releases Annual 401(k) Benchmarking Report Highlighting Key Trends
- Increased Savings Rates: The report reveals that participants engaging with financial advice save at a rate 29% higher than non-users, with their average account balance being twice as much, highlighting the critical role of financial education in retirement readiness.
- Roth Contributions on the Rise: Plans offering Roth employer contributions see participation rates 30% higher and Roth balances 29% higher, indicating a growing preference among younger participants for Roth options.
- Changing Savings Behavior Pre-Retirement: Participants in their 50s and 60s increase their savings rates by an average of 1.4 percentage points annually, demonstrating a proactive approach to investment changes that surpasses typical automatic increases.
- Accelerated Adoption of SECURE 2.0: With 78% of plans adopting at least one SECURE 2.0 provision, the industry shows a strong commitment to enhancing retirement savings, particularly through higher catch-up limits and automatic distributions for small balances.
See More
T. Rowe Price Reports $1.80 Trillion AUM as of January 2026
- AUM Growth: As of January 31, 2026, T. Rowe Price's assets under management reached $1.80 trillion, an increase of $22 billion from $1.78 trillion at the end of December 2025, indicating robust growth in the asset management sector.
- Asset Class Distribution: By asset class, equity accounted for $879 billion in AUM, fixed income (including money market) had $213 billion, multi-asset totaled $646 billion, and alternatives stood at $59 billion, showcasing the company's success in diversified investment strategies.
- Dividend Increase: T. Rowe Price raised its quarterly dividend by 2.4% to $1.30 per share, reflecting ongoing improvements in profitability and cash flow management, which enhances shareholder return confidence.
- Future Outlook: The company targets an expense growth of 3% to 6% for 2026 while advancing its ETF and global partnership strategy, aiming to further enhance market competitiveness and business expansion capabilities.
See More
Evercore ISI Lowers T. Rowe Price Target to $106 Amid Equity Outflows
- Asset Management Growth: T. Rowe Price closed 2025 with $1.78 trillion in assets under management, reflecting over 10% growth from the start of the year, despite facing $56.9 billion in net outflows, indicating ongoing progress in strategic priorities.
- Price Target Adjustment: Evercore ISI lowered T. Rowe Price's price target from $116 to $106 while maintaining an In Line rating, citing equity outflows as a significant concern despite the quarter's performance meeting expectations.
- Product Expansion and Partnerships: The company launched 13 ETFs in 2025, increasing the total to 30 and pushing ETF assets past $21 billion, while also rolling out their first co-branded model portfolios in collaboration with Goldman Sachs, highlighting strategic advancements in wealth and retirement opportunities.
- Private Equity Fund Success: T. Rowe Price achieved a first close on a firm-managed private equity fund in early 2026, and OHA recorded its second consecutive year of record fundraising, raising over $16 billion, which further strengthens the company's market position.
See More
T. Rowe Price Reports $1.80 Trillion in AUM as of January 2026
- Assets Under Management: As of January 31, 2026, T. Rowe Price reported total assets under management of $1.80 trillion, an increase from $1.776 trillion at the end of 2025, indicating the firm's stability and market confidence in its investment strategies.
- Net Outflows: The firm experienced net outflows of $5.2 billion in January 2026, reflecting potential impacts of market volatility on client investment decisions, which may pose short-term liquidity challenges for the company.
- Asset Class Distribution: Among the managed assets, equity accounts for $879 billion, fixed income for $213 billion, multi-asset for $646 billion, and alternatives for $58 billion, showcasing the firm's ongoing commitment to diversified investment strategies.
- Retirement Portfolios: The target date retirement portfolios reached $58 billion, up from $56 billion at the end of 2025, underscoring the company's leadership in retirement investment and the trust clients place in its retirement products.
See More
Stable Dividend Growth Investment Opportunities
- American States Water Overview: American States Water (AWR) has paid dividends since 1931 and has raised them annually for 70 years, making it a Dividend King with a current yield of 2.7%, reflecting its strong financial health.
- T. Rowe Price Growth Potential: T. Rowe Price (TROW) manages $1.78 trillion in assets, offering a dividend yield of 5.3%, and has reduced its payout ratio from 71.6% to 55%, enhancing its appeal as a steady growth stock.
- PepsiCo's Risk and Reward: PepsiCo (PEP) paid $7.92 billion in dividends in 2025, with a payout ratio of 105%, yet its revenue grew by 5.6% in Q4, indicating future growth potential despite cash flow pressures from acquisitions.
- Diversifying Dividend Portfolio: By combining the stability of American States Water, the high yield of T. Rowe Price, and the growth potential of PepsiCo, investors can create a diversified dividend portfolio to mitigate risk and enhance returns.
See More
T. Rowe Price Releases Annual 401(k) Benchmarking Report
- Increased Savings Rate: T. Rowe Price's report reveals that participants engaging with financial advice and tools through their workplace retirement site save at a rate 29% higher than non-users, indicating that effective financial guidance can significantly enhance retirement readiness.
- Account Balance Comparison: The report highlights that the average account balance of participants is twice that of non-users, underscoring the importance of financial education and tools in boosting retirement savings, despite only 13.8% of participants currently utilizing these resources.
- Broad Data Foundation: The findings are based on T. Rowe Price's full-service recordkeeping client data, representing over 2 million plan participants, ensuring the reliability and representativeness of the results to aid plan sponsors and consultants in making informed decisions.
- Industry Trend Insights: The head of Retirement Plan Services at T. Rowe Price emphasizes that personalized guidance and innovative design are crucial for retirement preparedness, highlighting the increasing necessity of providing financial tools and support amid changing economic conditions.
See More
T. Rowe Price Releases Annual 401(k) Benchmarking Report Highlighting Key Trends
- Increased Savings Rates: The report reveals that participants engaging with financial advice save at a rate 29% higher than non-users, with their average account balance being twice as much, highlighting the critical role of financial education in retirement readiness.
- Roth Contributions on the Rise: Plans offering Roth employer contributions see participation rates 30% higher and Roth balances 29% higher, indicating a growing preference among younger participants for Roth options.
- Changing Savings Behavior Pre-Retirement: Participants in their 50s and 60s increase their savings rates by an average of 1.4 percentage points annually, demonstrating a proactive approach to investment changes that surpasses typical automatic increases.
- Accelerated Adoption of SECURE 2.0: With 78% of plans adopting at least one SECURE 2.0 provision, the industry shows a strong commitment to enhancing retirement savings, particularly through higher catch-up limits and automatic distributions for small balances.
See More
T. Rowe Price Reports $1.80 Trillion AUM as of January 2026
- AUM Growth: As of January 31, 2026, T. Rowe Price's assets under management reached $1.80 trillion, an increase of $22 billion from $1.78 trillion at the end of December 2025, indicating robust growth in the asset management sector.
- Asset Class Distribution: By asset class, equity accounted for $879 billion in AUM, fixed income (including money market) had $213 billion, multi-asset totaled $646 billion, and alternatives stood at $59 billion, showcasing the company's success in diversified investment strategies.
- Dividend Increase: T. Rowe Price raised its quarterly dividend by 2.4% to $1.30 per share, reflecting ongoing improvements in profitability and cash flow management, which enhances shareholder return confidence.
- Future Outlook: The company targets an expense growth of 3% to 6% for 2026 while advancing its ETF and global partnership strategy, aiming to further enhance market competitiveness and business expansion capabilities.
See More
Evercore ISI Lowers T. Rowe Price Target to $106 Amid Equity Outflows
- Asset Management Growth: T. Rowe Price closed 2025 with $1.78 trillion in assets under management, reflecting over 10% growth from the start of the year, despite facing $56.9 billion in net outflows, indicating ongoing progress in strategic priorities.
- Price Target Adjustment: Evercore ISI lowered T. Rowe Price's price target from $116 to $106 while maintaining an In Line rating, citing equity outflows as a significant concern despite the quarter's performance meeting expectations.
- Product Expansion and Partnerships: The company launched 13 ETFs in 2025, increasing the total to 30 and pushing ETF assets past $21 billion, while also rolling out their first co-branded model portfolios in collaboration with Goldman Sachs, highlighting strategic advancements in wealth and retirement opportunities.
- Private Equity Fund Success: T. Rowe Price achieved a first close on a firm-managed private equity fund in early 2026, and OHA recorded its second consecutive year of record fundraising, raising over $16 billion, which further strengthens the company's market position.
See More
T. Rowe Price Reports $1.80 Trillion in AUM as of January 2026
- Assets Under Management: As of January 31, 2026, T. Rowe Price reported total assets under management of $1.80 trillion, an increase from $1.776 trillion at the end of 2025, indicating the firm's stability and market confidence in its investment strategies.
- Net Outflows: The firm experienced net outflows of $5.2 billion in January 2026, reflecting potential impacts of market volatility on client investment decisions, which may pose short-term liquidity challenges for the company.
- Asset Class Distribution: Among the managed assets, equity accounts for $879 billion, fixed income for $213 billion, multi-asset for $646 billion, and alternatives for $58 billion, showcasing the firm's ongoing commitment to diversified investment strategies.
- Retirement Portfolios: The target date retirement portfolios reached $58 billion, up from $56 billion at the end of 2025, underscoring the company's leadership in retirement investment and the trust clients place in its retirement products.
See More
