'IRA Asset Allocation' and 'Characteristics of the CDHP Population, 2005-2010'

IRAs: This article provides the first detailed IRA asset allocation information from EBRI IRA Database,TM the only database that is able to anonymously link individual IRA owners across multiple IRA providers. <A href="http://www.ebri.org/pdf/PR925.24May11.IRAs.pdf">Press release </A> CDHPs: In the 10 years that consumer-driven health plans (CDHPs) have existed they have tended to attract participants who are better educated, healthier, and have higher incomes than people in traditional health plans, but in recent years, the income differences have begun to narrow. <A href="http://www.ebri.org/pdf/PR926.25May11.CDHPs.pdf">Press release </A>

IRA Asset Allocation

THE IMPORTANCE OF IRAs: Individual retirement accounts (IRAs) hold more than 25 percent of all retirement assets in the United States. A substantial portion of these assets originated in other tax-qualified retirement plans, such as defined benefit (pension) and 401(k) plans, and were moved to IRAs through rollovers. Thus, IRAs in many cases have become a repository for assets built up in the employment-based retirement system, as individuals hold money in them until or during retirement.

THE EBRI IRA DATABASE™ AND ASSET ALLOCATION: EBRI collects data from IRA plan administrators, and its IRA database currently contains information on 14.1 million accounts of 11.1 million unique individuals with total assets of $732.9 billion, as of year-end 2008. In this database, 38.5 percent of the assets were in equities, 22.3 percent in money, 13.6 percent in bonds, 12.1 percent in balanced funds, and 13.6 percent in other assets.

ALLOCATION BY AGE: IRA owners under age 45 were more likely to be invested in equities and balanced funds combined than those over age 45. Those over age 45 were more likely to be invested in bonds and other assets. The percentage of assets in money across each age group was around 21 percent.

Characteristics of the CDHP Population, 2005–2010

DIFFERENCES BY HEALTH PLANS: This article examines the population with a consumer-driven health plan (CDHP) and how it differs from the population with traditional health coverage. While it is very difficult to generalize the differences in characteristics among CDHP enrollees, high-deductible health plan (HDHP) enrollees, and individuals with traditional coverage, a few differences stand out.

AGE: The CDHP and HDHP populations were less likely to be young (ages 21-34) than the population with traditional coverage. However, in 2010, both the CDHP and HDHP populations were more likely to be ages 35-44. There were no differences in the portion ages 45-54 and no recent differences in those ages 55-64.

INCOME AND EDUCATION: CDHP enrollees have higher income than traditional plan enrollees, but the degree to which they have higher income has been falling. CDHP and HDHP enrollees have consistently reported higher education levels than traditional plan enrollees.

HEALTH: CDHP enrollees have consistently reported better health status than traditional plan enrollees and exhibited better health behavior than traditional plan enrollees with respect to smoking, exercise, and, recently, obesity rates. It cannot be determined from the survey whether plan design had an impact on health status, smoking, exercise, or obesity rates.

Figure 5 Figure 1 Individual Retirement Account (IRA) Asset Allocation, Individual Retirement Account (IRA) Asset Allocation, by IRA Type and Account Balance, 2008 4 Figure 3 Figure 5 enrolle Extreme Allocations were Deloitte indivi The o in dual es to r n e an eAge go q wit uiti d I ve — h e e nport e in an rnment data so s and 2 ternation It is oft d ac xcell 0 e.1 n assumed t ross data al S ent percent o or very ciety of urce,providers wil in the Surve h Certi good bala at CDHP nced fu fhealth ied Employee y o enr lf signific Co (Fig nds oFigure 7 nsumer llees ar (7 ure antly understate 0.5 4 Bene e mor Finances ( )perc . Furthermo fit ent co eSpec like SCF) ia lmbine y tha lists: 20 re, in the total , that has signi nd), t four h com ose wit 11 IRA of To p tare a p hh ssets held by t fe six icant detail o Five tra d with d years o Total itional cov 37. R 6 percent fe f the all U. war hose erage to ds S. in by Various Characteristics, 2008 Balanced Characteristics of the CDHP Population, 2005–2010 IRA Asset Allocation New Publications and Internet Sites Figure 3 a b Individual Retirement Account (IRA) Asset Allocation, Distribution of Adults Ages 21–64 With Private Insurance, Appendix families’ wealth, including IRA and DC pla Type/Account Balance Individual Retirement Funds n wealth, only re Account (IRA) Asset Bond Figure 1 ports an allocation between Equity Allocation, Money equity and intere Other st-bearing be you equiti Priorities Surv survey ownine g mu s an ng. (200 Tha d ltipl 5 and 20 1ey, 1 te is g .7 accou www. perc enera 10 ent i n deloitte.com/assets/Dcom- ts an the lly n exce not wh d balanc potential ptions), at has ed fu Balanced ly o C nds (4 been D vHP e erstate the fo 9.3 nund rolle perc in es wer percenta en the surveys. O t combin e less likel ge o ed) Equity With f ifn y to re o ther tha divi r IRAs w duals port n iith a wit n bei 2h 009, n ccount ext g in the reme fair or balanc surve allo poor healt cations. es of y found h The sections above looked at the average allocation across the various characteristics examined. However, Data Security Distribution of Adults Ages 21–64 With Private Insurance, by Health Behav a ior and Type of Coverage, 2005–2010 b c by IRA Type and Gender, 2008 By Crai [Note: By Paulg Co Fronstin, To or Traditional pel der U.S. and, Em Employ Gover ploye ee Bene n ement Acco Benef fit Resear it Re un setability O ch arch Institut Institut ffic e 2ee (GAO ) publications, call (202) 512-6000.] Distribution of Adults Ages 21–64 With Private Insurance, by Age and Type of Coverage, 2005–2010 Funds Bond Equity Balanced Money Other assets. As this database shows, there is by Gende a significant amoun r and Account Balance, 2008 t of assets in balanced funds and other assets that are that CDHP UnitedStat $15 or that t 0,000 h - ey h e es/L $2 n49,9 rad at o ocal%2 llees 99. IRAs with least o were 0Assets/Documents le ne chron ss likely than the larg ic heal es t th con /us_consult t hbalanc ose wit dition. es h tr ($ ina 250, g_20 ditional cov 00 110 or m TopFive erage to ore) TotalRe had be more wards betw of t Survey_0 een th he assets e a4 g0 es o 71 diversifi 1f.pdf 21 an ed d This study is based on data from the 2005 ?2007 EBRI/Commonwealth Fund Consumerism in Health Care tremendous variation around that by avera Educati ge exists on and Ty amon pe of Cov g IRA own erage, ers. T 2005–2010 his section investigates what May 2011 • Vol. 32, No. 5 Less than $5,000 21.4% 4.2% 50.8% 18.0% 5.6% All 12.1% 13.6% 38.5% 45.8% 22.3% 13.6% TM An individual may not have more than Balanced one IRA but have an IRA and a DC plan at a current or previous 35–44 not strictly equities or interest 21–34 bearing but are being represented as such in the data. See Craig Copeland, Survey an 34 EBRI’s re across all th (Figurt e id t rem 1). e h asset categori e 2008 e In 2 nt databases 00 ? 62 an 01d 0 2 EBRI/M es—with t 010, (the EB the GA Co RI/ICI CDH he h nsumer En P po i Partici ghest pulatio perc pBalanced ant gagement ent n -Di was more age o rected Reti f assets i in H likel erement Pl aly than t th Care n bonds, mon Surv an he po Dat epulation y abase . They ey, an , d oth are w the ith t on eEBRI r raditiona line surv assets— IRA l eys percentage of $5,000–$9,999 IRAs have ext Obe reme al se locatio 21.1 a ns, defined 5.7 here as having 51.8 less than No Re 15.9 10 gul p bar eEx rcent ercise or mor 5.5 e than Gender Type/Gender High School Graduate or Funds Less Bond Equity Colle Money ge Graduate or Other a b 40% TM 40% TM 36% Expres employer. s Scri Self Th pt -Rep esrefore, ®: 20 orted the 10 Dr Health assets these ug Tren Be d R hav epo indiv ior rt— iduals : A Market CDHP hoenrolle ld ca annnot be d B es e ehavioral xhideter bit more A m nined by alysis, health ww looki -conscious w.n expr g only at ess- behavior t account han “Retirement Plan Participation and As 34% set Allocation, 2007,” EBRI Notes, no. 11 (Employee Benefit Research 36% $10,000–$24,999 33%Gender/Account Balance 33% 19.8 Funds 7.3 Bond 51.1Equity Mone 15.4y Other 6.3 coverage to Database than IRAs, in t be ages 35 a hn e EBR y of t Female I Int he smaller-acco ?44. egrate No di d Defined ffer unt enc 14.1 ba eContribu slance betw13.5 een categor tio the n/IRA two ies. 38.7 Data grou base ps w 47.1 ere ) have foun 32%bee d i 21.9 n n t th he e su perce bject 11.9ntag of e mul bet tipl wee e n of pr Introduction Fiduciary Responsibility Introduction 40% ivately insured adults ages 21 ?64, fielded in August of 40%each year. 31% The survey 31% was conducted to provide 90 percent in a particular asset. 31% 30% 33% Some Graduate Work Traditional 50% 42% 31% 28% 30% 30% 30% 28% 28% 27% 27% 38% 29% 38% 29% 26% 30% Male 28% 10.6 28% 25% 14.0 30 38.4 % 44.825% 22.2 14.8 indivi scripts.com/re studies, duals which can wit $25,000–$49,999 h search/studies traditional great 27% ly understate the co/verage. drugtre In n17.7 dre all ptotal assets years of ort/2027% 10 /dtr the 9.4 th Fi sat an nal.pdf urvey, CDHP individu 25% 48.7 e al has ac nrollees cumu 16.2 wer 24% elated in less likely th 24% these 7.924%an types of those Institute, November 2009): 1 26% Femal 24%24%e 3 -26% 23 for results on asset allocation from th 35% 46%e survey; and Brian K. Bucks, Arth 46% u45% r B. 23% 23% 44% 23% 44% 30 40%% 32% 25%33% 30% 25%25% 25% 22% 25% 42% 23% 42% inationally the a ndepg en es o de repr nt s f 45e esentative ?curity 54, ana d on udidat ts ly and have a regarding the gro in 2009 was it been certi founw d t fie th of d to hat th C be f D e po 50 HPs an % ullpulat y com 24% d HDHPs, and the i ion plia with tr nt wit 41%aditio h the IS 41% nam l covera O 23% pact of th -27002 ge Infor wa ese plans an s mation d Female 21% 23% 13.8% 23% 21% 14.5% 39.1% 19.8% 40% 12.8% In 2001, a Internation Individual retir ha al Foun 20% ndfu ement a l o dation f em ccoun plo of Employee Ben 20% yts (IRAs) are a ers started o 20% fe ferin vital com fit Plans. g health 22% 20% p Fiduciary on re eimbursem nt of U.S. reti Respon entsibility for Tru arran rement savin gements (HRAs)— s gtees s, holding more . Sixtha th Edition. en-n 23% than ew Unknown 16.8 10.6 38.3 48.4 35% 24.1 21%10.1 21% 18% 34% 20% 20% Roth IRAs had the $50,000–$99,999 highest share of assets in 15.0 equities 11.1 (51.4 percent) 45.5 and balan 19% c 17.6 ed funds (16.7 10.8 19% percent) 19% 30% 40% Type 20% —The Less than $5,000 most significant difference among th 22.9% e I 20%RA ty 3.5% pes is t 45.7% hat Rot 23.6% h owners ar 4.3%e much more ® 17% 17% Kennickell, and Kevin B. Moor with tr plans beca aditio use they nal covera exami ge to ne accounts separately, an r e, “Changes in eport that theU.S. Family y smoke (F d igu Fin do not a a re 5 nces from 20 ). ggr Similarly ega 16% te the accou 04 to 2007: Evidence from the , in all years o nts. Consequ f the survey ente ly, the goal Surve xcept y of 20% 20% 15% 24% Male17% 9.7 14.6 24%39.2 22% 20.2 16.2 23% 22% comprised of Security Audita larger shar standard. Me orof 55 eover, EBRI -64-yea rhas obtai -olds than t ned he a CDHP legal o popu pinion lati that on. the methodology used meets the consumer engageme Age nt more generally on the behavior an 30d attit % udes of adults wit 20% h private health13% insurance 14% 14% 14% IFEBP 25 type o perc 20% memb f h ent o ealth f $100,000–$149,99 e r all reti plan. s, $20; Th rement nonm e mos embers, assets in the 9 t preval 13% ent $2 12.5 7. HR nInternation ation. A su A plan de 13.1 sa bstantial ign l Fo had a undation portion deducti 41.2 of Employee Ben of these ble of at IRA 19.5 least ae ssets originate fit Plans, Pub $1,00013.7 for em lications d in ployee othe - r 11% 11% $5,000–$9,999 23.3 10% 10%10%5.1 48.4 18.6 4.5 (Figure 2). Rollover IRAs had the lowest percentage in equities (at 35.8 percent), but had the highest ICI Research Perspective: “Who Gets Retirement Plans and Why: 8% 20% An Update,” www.ici.org/pdf/per17-03.pdf likely 10%to have 90 perc 6% ent or more of their assets in equities than 10% those who own the other types (Figure 9). Co 201 of the nsumer Fina 10 0, C % int Degrat HP eUnknown n nces, ion of rollees Less than 25 ” the Federal Reserve Bulletin wer EBR e le I data ss likely to bases is 16.0 18.5 report that be a , Vol. 95 (Feb ble 5.1 to 11.6 they look at the two ruary 2009): A did not r 48.6 39.7 egula 59.6 la 1–A55 rly ex rgest sources ercise. A 21.6 20.9 n of retir d most r 6.9 11.1 ement ecen assets tly in 10% 10% $150,000–$249,999 10.4 15.1 37.5 21.0 16.0 IRA Asset All coverage. privacy standards of High deduct the iblo G es cati rawere mm-Leach-Bl defin on, ed p. 2 as indivi iley Act. d At ua no ti l deducti 10 me % has bles o any f anonpub t least $1,0 lic personal 00 and ifamily nformation that deductibles o is f Departm tax-q only covera ualif ent, ied r ge Petirement .and a O. Box$10,000–$2 tax-preferred accou 68 p-9 lan 953, Mi s4,99 , such as9 21.7 lwaukee def nt i,ned that work WI be 5326 nef8- it er99 (p s a ens 53, nd t ion) (8 h6.8 eir 88 an families can ) 33 d 4 4-48.4 01(k 332)7, o plans use to18.0 ption , and 4pay their out ; fax: wer5.2 e move (262) 3 -d to I of-pock 64-18 RAs 18, et 25–34 22.1 4.1 46.5 59.7 21.9 5.5 perce 0% ntage of Roth assets in money (at 24.2 percent) and the hig 0% hest percentage in bonds. The higher allocation 0% Figure 8 0% Furthermore, Roth owners are correspondingly more likely to have less than 10 percent of their assets in www.federalre 0% $250,000 or more serve.gov/pubs/bulletin/2009/pdf/scf09.pdf 6.8 18.7 (last reviewed February 201 0% 31.7 23.11) for more infor 19.7 ® mation on Similar r 200 (IRAs an 9 and 20 e d sults wer DC 10 plans) to se , CDH e foun P end roll e t wees w h hen com e behavior erep less ari of ng likely to individu the HDH be als P obese. ac population ross these acc with traditio ounts, as w nal co everage ll as behav enro ior llees. Other within the (Fig 8, cont'd.) th$25,000–$49,999 19.6 9.3 45.1 19.4 6.6 personally identifiable, such as Social Security numbers, been transferred to or shared with EBRI. None of at least $2,000. 35–44 Those with a high dedu 16.0 ctible an6.3 d either an H 50.2RA or an 59.8 HSA com 19.9 prise the CDHP 7.5 sample, and e-mail: health through MetLife: care expenses. I bookst rollov 9 Ae nnual ore@ifebp.or rs. Thus, Stun d IRA 2003, t y of gs , Employee in many ww hw.if e Meb e cas dic B p.o e are Pr e nefits rs have g escriptio Tren beco ds, me nwww.metlife.com/ Dru a rg e, Im positor proy v for assets ement, a business/ nd built u Moderni insig ph in t ts- zation ahnd e e - Act mployment- Female 18.1 6.8 51.1 17.0 7.1 to equities Roth in Roths compar Individual Retirement Account (IRA) Asset Allocation, ed with rollovers can be explained by two reasons: Roth owners are younger on bonds, mo Characteristics of the CDH ney, or both. Traditional and SEP/SIMPLE o P Population, 2005–2010, wners have relatively similar likelihoods of p. 15 extreme the Survey of Consumer Finances. Balanced than i accounts. A n 2009better u , HDHP e$50,000–$9 nderstandin nrollees9,99 were g o9 16.7 less l f the decisions Amer ikely than those icans make with tra11.4 dition in t42.2 al covera heir retirem20.6 ge to en be t savings acco ages 29.2 1 ?34; HDHP unts would 45–54 14.0 8.8 46.5 54.9 20.7 9.9 the thosthr e wit ee h data deducti bases bles allo th ws at identi are ge fine cation rally o high f any eno individua ugh to meet ls or plan s the qu po alifyin nsors. g threshold to make tax-preferred Male 14.1 a 6.7 51.8 17.3 b 10.1 based retir included a e pro ment system, as Less than $5,000 vision to allow individu individuals ho als w 24.4ith certai ld monen h y in 2.7 i the gh-deducti m untilble health or d 52.4 uring r plans to eti14.9 reme c nt. ontribut5.6 e to a health tools/industry-knowledge/employee-benefits-trends-study/index.html?WT.mc_id=vu1479#highlights by Age and Account Balance, 2008 EBRI Employee Age/Account Balance Benefit Research Institute Not Funds es (ISSN 1085 Bond ?4452) is publish Equityed monthl Mone y by y the Emplo Othe yee r Benefit Research With average than respect t rollover o o HDHP 55–64$100,000–$ and tr wners aditional149, , and 999 14.3 Roth I plan 11.6R enrolle As tend 13.3 es, ther to be s e w upplem 38.1 ere13.3 no stat ental 45.138.3 sistically sign avings fu22.3 22.8 ndifi ed cant diff by 11.7 14.1 indivi erenc duale s in the allocations across the assets studied, while rollover owners are much less likely to have 90 percent or more enrollees were more l 5 result, which could allow ikely t forh the an those determi with na ttraditional ion of what cov ine drage to ividuals n be ages 35 eed to know ?44 to m only in ake better 2010; ther dece was isions no th 1 $5,000–$9,999 Unknown 23.1 23.8 5.4 3.8 50.7 52.1 14.6 15.0 6.2 5.3 contributio The total equi ns to ty allocation is an HSA but without estimated an by a accssuming that al ount comprise the HDHP sample. More l balanced funds have 60 perc information a ent in equities bout the and 2010 Institute, 1100 13 65–69 St. NW, Suit e 878, Washington, DC 20005- 9.9 16.3 4 33.9 051, at $300 pe 39.8 r year 23.5 or is included as part of a membership 16.4 New Publications and Internet Sites savings account ( 55–64 HSA). HRAs and HSA-eligible plans are collectively k , p. n22 own as consumer-driven health plans $150,000–$249,999 12.2 15.4 35.6 23.0 13.8 contributio 20 n05 s only, wh 2006 ereas 2007rollovers ten 2008 Balanced 20 d09 to be20 the 10 main or primary retirement savings for workers nearing perce Health Care ntage obese an d no recent differences in the percentage not 20 2005 05 exercising. 20 2006 06 Howe 20 2007 07 ver, in 2020 0808 all year 2020 0909s of th 2020 1010 e of their assets 2005 in 20 equities a 06 2007 nd more 2008 likely t 2009 o have20 larger 10 allocations to bonds and money. Despite IRAs’ i 2005 $10,000–$24,999 mportance 2006 20 in 07 the U.S. 2008 retire 19.4 2009 ment system, 2010 5.1 there is a 2005 55.5 limited amo 2006 unt o 14.3 2007 f knowle 2008 dge 5.7 20 a 09bout the 2010 dif that wo ference uld lea in t Rollover he d to su perce perior ntag eoutcomes wit between the hages in all of in 4 divi 5 ? dua 54; and l retir only ement in ac 2007 counts. and 2008 was it found that the subscription. Periodicals 70 or older postage rate paid in 10.5 Washingt 17.8 on, DC, and additional mailing offi 33.5 39.7 22.2ces. PO 16.1 STMASTER: Send address The Pew Cent Less than $5,000 er on the States: The Wide 20.1 ning Gap: a Th4.4 e Great Recessi 48.3on’s Impact 21.5 on b State Pe 5.7 nsion and EBRI/M 40 percent in b GA Consumer En onds. Howeve $250,000 o gagement r, target-date funds are in r more in Health Care Surv 7.9 clud ey can ed in the bala be 18.5 found 31.7 nced funds, so this estimation in Fronstin, 24.4 2010. 17.5 (CDHPs). Bond Equity Money Other Age/Account Balance th Funds $25,000–$49,999 16.0 7.8 51.6 17.6 7.1 survey exc IRA Types retirement or eptFemale retirees. Co 201 Unknown 0, HDHnseque P enrollees ntly, th 13.6 wer 16.7 e easset allocatio less likely th 11.9 14.1an n re traditio 38.9 flects th 35.5 nal e pla 48.9 perio n enro d of 24.5 llees the 22.7 to owner report t ’s lif 9.9 12.2 e a hat th nd th ey e share changes to: EBRI Notes, 1100 13 St. NW, S uite 878, Washington, DC 20005-4051. Copyright 2011 by Employee Benefit behavior of individuals who own IRAs alone or in combination with employment-based defined contribution Buck Consulta $5,000–$9,999 nts, LLC. Working Well: A Global 20.1 Survey o 6.0f Health Prom 49.5otion and 18.6 Workplace Welln 5.8 ess population with traditional coverage was comprised of a larger share of 55–64-year-olds than the HDHP Male meth Retiree Healt odology is h Care Costs, not likely to h woww.p ld across ages, bu ewcenteronthestates.org/u t on an overall basis is a g ploadedFiles/Pe ood indicato w_pensi r of the aver ons_retireage a e_benef llocation its.pdf Gender Less Than 25 —ThSo e likeli me Colle hood of ge, Tradee xtreme allocations is virtually identical across genders 55–64 (Figure 9). For $50,000–$99,999 45–54 12.4 7.7 51.5 Gradua 17.9 te Degree 10.4 Research Institute. All rights reserved, Vol. 32, no. Account Balance 5. Male TM 10.7 14.7 36.1 23.7 14.8 of the retirem $10,000–$24,999 ent savings the accounts represent. 19.4 7.1 48.8 18.3 6.4 smoked As the EB . RI IRA Database™ expands and matures, mo Smokesre Ci ela garettes borate types of studies will be conducted on The EBRI IRA Database classifies IRAs into four types: traditional (originating from contributions), Roth, (DC Strategi ) plans. Co es: Survey Report nsequently, e . $x 325. panded re Buck Con sear sch in ultants, A Xer this areao is ne x Compa eded to ny, Attn: Glo understan bal d t S hu e fi rvey Resourc nancial proe ss, 50 pects of population. Less than $5,000 EXEC UTIV 18.9 E SUMMAR 3.1 48.3 Y 23.8 5.9 Less than $5,000 or Business School 32.7% 1.3% 40.0% 23.1% 2.9% $100,000–$149,99 Less than $5,000 9 10.7 22.0 3.2 8.6 46.3 48.3 59.5 19.5 23.6 4.912.9 between the two asset classes. Initially, 40% projections for growth in CDHPs were strong. In pract 40% ice, growth has been steady but slow. In 2010, instance, 34% 29.7 34% percent of females had 90 percent or more in 50% equities, compared with 29.0 percent for males. Unknown 16.2 11.3 34.8 27.4 10.3 $25,000–$49,999 17.5 8.9 46.4 19.5 7.8 th 30%30% 40% th these topics. Furthermore, $5,000–$9,9 with the 99 linked defined cont 19.3 ribution account data, 4.7 52.3 the tra 17.4 cking o 6.2 f movements of 29% $5,000–$9,999 $5,000–$9,999 29% 29% 22.5 26.2 4.8 2.2 50.0 49.3 63.4 17.6 18.9 5.2 3.4 SEP (Simpl future retir 50% ifi ees ed Employ and the mark 28% er Pension) et for IRAs. /SIMPLE 28%28% (Savin 28% gs Incentive Match 40% Plan for Employees), and rollover Fremont PIMCO DC St., Pra $150,000–$249,99 12 ctice: Floor, Survey 27% San Francisco, Highli 9 ghts: 9.0 CA 527% 941 Annual 27%27% 05, (800 De 27% 9.3 fine ) 887 d Contr -0509, ibutio 45.5 www.bucksurveys n Consultin 20.6 g Su .com pport and Tr 15.6 ends 26% 26% 26% References 30% 16 30 perc % ent o 36% Source: EBRI IRA Database.™ f smaller em 36% ployers and one-half of the largest employers offered a C 25%DHP (Mercer,25% 2010). As a $50,000–$99,999 14.7 10.2 24%44.2 20.4 10.5 24% 6 33% 40% 31% 31% 31% 22% Firm Size—In all y 30%ears of the survey except 2010, the CDHP population was 24% more 24% likely than the 28% $10,000–$24,999 29% $10,000–$24,999 $10,000–$2 29% 30 4,99 % 28% 9 20.1 16.2 28% 6.3 17.5 3.7 30 50.4 % 6.2 58.9 62.5 52.6 16.8 17.3 17.1 6.9 5.921% 4.0 See Jack VanDerhei, Sarah a Holden, and Luis Alonso, “401(k) Plan Asset Allocation, Account Balances, and Loan 21% 21% $250,000 or more The Emplo 6.1y 26% 24% ee Benefi 26%24% t Research Institut 11.5 37.5 e 20% (EBRI) was founded in 1978. Its 23.719%19% 19%21.2 m 19% ission is to Age dollars betw Racee e— —As th n the Few pr e a diimary ffer ge o ences f24% th retireme e I in 23% Re A nrollment nt sav owner24% ing incr w accounts e eases, the re fou 25% nd (D by less lik C plans and race. Other ely they 18% IRAs) tha aren i can be to 18% n 2 have 005, s more t tud the ied re h w was no an 9 ith f0 a r g perc rea ent ter (traditional IRA originating from assets roll 22% ed over from other tax-qualified plans, such as an em 18%ployment- 18% IRA Asset 30% Balanced funds include life Allocation cycle/style funds and target-date funds. 17% 17% 17% Survey, www $100,000–$149,999 2.pimco.com/dc/DCSurveyH 12.9 ighlights0311. 11.6 pdf 16% 40.3 16% 22.4 12.7 16% 16% IRA Type Allocations 20% 20 20% % 15% 15% 13% F result, a ronstin, Paul. bout 2"F 1 mill indi $25,000–$49,999 ngs from ion indivithe 201 duals with 0 EBRI/MGA Consum 17.8 private insura 18% 8.6 nce, er Enga 20 repr 47.3 % esenting gem 18% en 58.0 t in Health C 12% about 12 perc 18.9ar12% eent of the mar Surve 7.4y." EBRI Issue ket, were $25,000–$49,999 $25,000–$49,999 10.9 15.5 7.5 8.3 51.8 11% 49.5 18.4 23.1 8.3 11% 6.6 The Employee Benefit Research Institute (EBRI) has focused on retirement savings since its inception in 10% 20% Rollove b r contribute to, to encourage, and to enhance the developmen 9% t of sound employee benefit population of individuals with trad 20% itional coverage to ha15% ve that 15%coverage through a 15% small employer (Figure 6). Activity in 2008,” EBRI Issue Brief, no. 335 (Employee Benefit Research In 14%14% 14% 14% stitute, October 2009) for a detailed Richard K. Mill Money includes money market mutual funds and certificates of deposit (CDs). er & Associates. The 2011 Healthcare Business Market Research 13% 13%13% Handbook. Hardcopy or PDF, dif accuracy. Onc in e fere quiti nce in es an$150,000–$249,999 td less than he dis e indivi tribut duals 1 ion 0h perce ave reac of enroll nt in hed t ees bo when 11.5 nhdeir r s an e comp d mon tirem ari e 13.3 e n ng y (Figure t years, the wi the CD9 HP popul )37.6 . Th thdrawal or is follo ation wit ws the 12% 23.0 “s h pen thos standard inves de cover -down 14.6 ”e o d by f assets tment 10% based pension or DC $50,000–$99,999 plan). The distributio 15.1 n of IRA a 10.3 ccounts in 44.5 2008 53.6 was 33.6 perc 20.2ent in tra 9.9ditional IRAs, 10% 10% $50,000–$99,999 8.0 8.8 10% 49.2 25.5 9% 8.5 Who we are $50,000–$99,999 13.3 9.7 46.5 19.6 10.8 Gender in a CDHP Brief, in 2 Less than $5,000 no. 350 ( 010 —Wit (Fronstin hin Emplo each 201 ye programs and so e Be IRA t 0). ny epe, th fit Researc 17.7 e asset und public policy h Institute, Dece allocation 2.7 through objective diff mber 20 erences 32.4 10). bet resear we43.3 en ch and gend educati ers is 3.9 minimal on. EBRI is the only (Figure TH 1978, a E IMPORTA nd has don NCE OF IRA e particul S:arly in Indiviformativ dual retir e researc ement ah on ccoun the ts (IRAs) behavior hold of participants i more than 25 nperce 401(n k) pla t of all ns. 10% While th 0% e CD$250,000 or more HP population was less likely 8.2 to work for a 16.5 large 0% employe 32.8r in 2005 an 24.7 d 2006, that 17.7 is no longer description of and results from $100,000–$149,999 the EBRI/ICI 401(k) Database 13.2 11.9 from 2008. 40.6 48.5 22.1 12.2 Prude $485; Har ntiald Fi co npy + ancial: PD T F, he A $58f5. Ric rican Amer hard K. icaMiller n Financi & Associ al Experie ates, 41 nce: 32 20 Atl 11anta Hi Pruden ghway, tial Re Ste. search 11Study 0, Loganville, , GA traditional over time guide to re can pla duc nbe stu e s. The the allocat d 2 ie0 d 0bas 5i o dif n e to asse fd o eren th nce ma e lo ts wit ngitudin y be h hi du ghe to al variabi data a small sample t lihat w ty in rill eturns be ava size o (equiti ilable. f mi e T s) as o noriti his ha es, whic ns the e ages. A potentia h was addressed findling that for a fa r 33.4 percent r $100,000–$149,999 ollover IRAs $100,000–$ (combine 149,999 d with 7.2 the traditiona 12.0 10.3 l IRAs, 67. 11.3 0 45.5 per 42.2 cent), 2 21.6 3 24.4 .4 percent Rot 12.9 12.6 h IRAs, and $5,000–$9,999 22.6 5.0 44.5 22.8 5.2 0% private, nonprofit, nonpartisan, Washington, DC-b 0% ased organization committed exclusively to 3). The bond, equity, $150,000–$249,999 money, and annuity 11.7 allocations ar 13.7 e virtually 37.6 ident 44.6 ical. In traditio 23.0 nal IRAs, ma 14.0 les had 65–69 retirement assets in t However, the connection he U be nittween ed 0% States. A s defined contribution ubstantial po (D rtion of C) pla these n parti acipants a ssets originate nd IRA own d in othe ers has r tax-not been qualified the case. $150,000–$249,999 5.5 11.5 45.5 21.9 15.6 7 30052, (770) $10,000–$24,999 466-9$150,000–$ 709, fax: (7 249, 70 999 ) 466- 21.2 6879, www.rk 10.9 6.5 ma.com 13.2 44.4 38.8 21.9 22.5 14.6 6.0 iww greater does not n 20 w.pru 06 un . follo dent deriw this sal.com/me tanding of th guide d is ia/ e retir the mpublic anage approxim ement poli d/aa/ c preparatio y r AAStudy.p ate 2 esearch 0 perc n an and df?s end behavior o edu trc=bus of t cathion on ose u iness n fecon w A der age 35 irm e& o ericans as t m pg=AASt ic securi havin tuyh dyBroc ese data g and em more than plo bases yee 90 percent b expan enefit is d.s u es. Mercer. 9.6 percNatio ent SE naPs and l Survey of E $250,000 or more SIMPL m Ep s. loyer-Spo 8.1 nsored Health Pl 17.6 ans: 201 32.2 0 Surv 37.1 ey Report, 201 24.3 0. 17.8 This artic Company sto le exc amines th k is not a spe e pocpulation ific category in IRAs, so with a CDHP an this alters the direct comparisons between the two d how it differs from the population with traditional Less than $5,000 17.8 5.7 49.9 20.5 6.2 39.2 percent of their assets in equities, while females had 39.1 percent. The one consistent difference across retireme well develope nt pla $250,000 or more d. In ns, such as order to de fill t finehis gap, d benefit EBRI h ( 1.9 pension as starte ) and 13.9 d401 an(k) initiative plans, 34.6 to study i and weren mov 22.7 depth th ed tois conn IRAs thr 27.0ection ough $25,000–$49,999 $250,000 or more 18.8 8.4 8.0 17.6 43.5 32.5 22.1 23.9 18.1 7.3 EBRI’s membership includes a cross-section of pension funds; businesses; trade associations; Source: EBRI IRA Database.™ in money. Otherwise, the results across the ages follow the patterns that would move the assets away from $5,000–$9,999 17.7 7.4 49.6 19.1 6.2 databases, but health coverage. Data from the in general the a overall number 2005 ?2007s are simila EBRI/Comm r. Company stock inclusion onwealth Fund Consumwith the separate equity erism in Health Care Survey 25–34 $50,000–$99,999 Balanced funds include life-cycle/style funds and target-date funds. 15.7 10.1 42.0 22.6 9.5 the thr When com ee IRA paritypes (tr ng HDHP aditio enronllees al, rollov withe tradi r, antd ional Roth) is th plan enat males rollees it was had a hi found that, i gher share of assets i n all years on f t o hther assets, e survey Unknown labor unions; health care providers and insurers; government organizations; and service firms. rollovers. Th between DC pl usans and IRAs. , IRAs in manyTo do cases have this, EB become RI has cr a r eate epod the sitory for assets built u EBRI IRA Database p in ,™ the em which ployment-based will be able to link TIAA-CRE U.S. Gover F 20 n In 05 mstitute Tr ent Accou 2006 ends ntability Of 2007 and Issues: 2008 fice. 20 Pr “Rethinki 09 ivate Healt 2010ng De h In fine surance: d Co20 ntribu 05Data tion Ret on A 2006 ppl ireme 20 icatio 07 nt Pla n an 2008d Cover n De20 sign 09age Denials ,” 2010 . When comparing HDHP enrollees and traditional plan enrollees it was found that in 2005, 2006, and 2007 a $10,000–$24,999 b 17.5 8.7 47.0 19.5 7.2 equities and to bonds and money as the owners mature. Equity with balanced includes the equity allocation plus 60 percent of the balanced fund allocation. This is for category in the 401(k) databa $100,000–$149,99 Less than $5,000 se would show a much hig 9 14.1 26.6 Figure 4 11.6 h1.6 er level of assets in equities in 40 38.9 37.8 24.0 30.3 1(k) plans and 11.4 3.6 would and the 20 2008 05 ?201 200 EB 06 RI/M 2007GA Consumer 2008 20 Engagement 09 2010 in Health Ca 2005re Su 20 rvey are used for 06 2007 2008 the ana 2009lysis. 2010 Endnotes Less than $5,000 27.6 2.7 42.7 23.1 4.0 while Asset Categories females had more in balanced funds. except 2007, HDHP enrollees were less likely than traditional plan enrollees to be from large firms. They were retireme individuals nt system, as in wit $25,000–$49,999 hin and across data dividuals hol provi 20d 05 mon d16.1 ers in th e20 y in 06 them is IRA 20 unt 10.7 07dail or tabase a 20duri 08 ng ret n 43.2 d w 2009 ith participant irement. 2010 21.1 s in DC plans. 8.9 This will Order from GAO. high www.tiaa-cr er perceefi ntn age o an estimation of the total percentage of assets in equities for IRA owners. stitute.org/pdf/research f HDHP enrollees we /tr reends_issues white, non-Hi /ti_spanic. definedcontr The 2i0 b05 ution fin031 ding ma 1.pdfy also be due to a small Endnotes $150,000–$249,99 $5,000–$9,999 9 12.7 29.4 13.4 2.5 36.6 45.0 24.2 18.9 13.1 4.2 Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2005–2007; EBRI/MGA Consumer Engagement in Health Care Survey, 2008–2010. c Individual Retirement Account (IRA) Asset Allocation, lower the difference between those that have $5,000–$9,999 28.7 90 percent or more in equities in IRAs and 4.0 47.5 15.7 401(k) plans. 4.2 Differences between the population with traditional coverage and high-deductible health plan (HDHP) Money includes money market mutual funds and certificates of deposit (CDs). $50,000–$99,999 EBRI’s work advances knowledge and unders 13.7 12.0 40.5 tanding of emplo 21.7 yee benefits and their 12.0 Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2005–2007; EBRI/MGA Consumer Engagement in Health Care Survey, 2008–2010. Acco 1 more likely to u be nt from small Balance—IRA o firms in w all ners w years of th ith highe surve er accou y exce nt bal pt ances are for 2010. less likely to have extreme asset Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2005–2007; EBRI/MGA Consumer Engagement in Health Care Survey, 2008–2010. The be done asse bot ts in t h $250,000 or more $10,000–$24,999 by cal he databas endar ye e aar an re divide d lon d 8.8 g into itu 23.2 d s inally, ix cat allo egori 17.4 wi 3.4 es ng . examin 32.1 atio 51.2n of retir24.9 e17.5 ment asset hol 16.8 4.8 dings at a 1 sample siz See Craig Copeland, “Averag e. There have been e Total IRA Balances and Co no statistically significant differ ntributions: An Overview of the EBRI IRA Database™” ences in the racial composition by plan type , Age—The asset allocat$10,000–$24,99 ion a9 24.1 cross ages w by IRA Type and Age, 2008 ithin each IRA t5.6 ype h49.0 as some 16.5 minor diff4.8 erences, but in See (Fronstin 2010) for more information about health reimbursement arrangements and health savings accounts. $100,000–$149,999importance to 12.3 the nation’s econo 13.7 my among policy 36.5 makers, 23.0 the news media, and 14.6 the public. It 8 THE EBR enrollees are I IRA also exami DATABASE™ ned. Dif AND AS ferences SET Ad LLOCATION: iscussed in th EBRI collects e remainder o data f this from IRA article ar pla e statistically s n administrators, and ignificant. Source: EBRI IRA Database.™ Towers allocations Watso (Fi $25,000–$49,999 g nure : Glo 9)b . al For i Pen ns stance, 3 ion Asset Stu 8.3 percent 18.5 dy 201 of t 1, www.tow hose w 5.2 ith a ersw n acco a48.6 tson.com/ unt of $ asse 5,0 21.5 ts/ 00p -d$9,9 f/376 99 1/ 6.1 ha Gld 90 perc obal- ent See Copeland (2010), op. cit. point in time and as the individual ages and either changes jobs or retires. $25,000–$49,999 21.2 7.6 45.4 19.8 6.0 si EBRI Issue Brief nce 2007. , no. 346 (Employee Benefit Research Institute, Se Balanced ptember 2010) for results of the first publication a $150,000–$249,999 10.9 15.4 33.9 23.6 16.2 general the percentage allocated to does this b equiti y co es and bala nducting and p nced fublishing policy re unds declined assear thech, analysis, owner aged, and wspecial reports on hile the Pension Plans/Retir ? Equities—equity mutuae l f ment unds, directly held individual stocks, and other 100 percent equity investment 2What we do Balanced funds include life-cycle/style funds, and target-date funds its IRA (More informa databa $50,000–$99,999 se curre tion abontly c ut theo data ntains in canform be14.6 a fation on ound in t 1 h4 e.1 appen 6.7 million dix. accoun ) 45.6ts of 11.1 milli 25.4 b on unique i 7.7ndividuals The conditions are arthritis; asthma, emphysema, or lung disease; cancer; depression; diabetes; heart attack or Pensions-Asse or more of thet-Study ir assets in$50,000–$9 -201 equities, com 1.pdf9,99 9 19.2 Funds pared with 5.9 percent o9.1 f those42.0 with Money an acco22.3 unt ba7.4 lance of $250,000 Type/Age $250,000 or more 7.6 Bond 18.7 Equity 30.6 24.3 Other 18.8 b employee benefits issues; holding educational briefings for EBRI members, congressional and from the database on balances and contributions. Conclusio Money includes money market mutual funds and certificates of deposit (CDs). n percentage all $100,000–$149,999 ocated to other assets increa 9.6 sed (Figure 4 8.1 ). Assets in Rot 38.1 h IRAs h34.1 ad the most consist 10.2 ent This artic vehicles; le is the second in a series of publications analyzing the EBRI IRA Database .™ It examines asset U.S. Government Accountability Office. 401(k) Plans: Certain Investment Options and Practices That May with total assets of $$100,000–$ 732.9 bi llion, as o149,999 17.3 f year-end 2008. In this 10.6 database, 337.8 8.5 25.6 percent of t8.8 he assets were in other heart disease; h Traditionaligh cholesterol; or h federal agen ycy perten staff, and th sion, hie news gh blood pressu media; and sponsoring public opinion survey re, or stroke. s on employee or more. Furth 70 or Older ermore, these accounts with higher balances are less likely to have less than 10 percent Household Income—When it comes to income, CDHP enrollees are generally more likely than $150,000–$249,999 5.9 8.9 35.3 35.0 14.8 2 trends, with allocations to bonds, money, and other assets increasing with the age of the owner. The It is very difficult to generalize the differences in characteristics among CDHP enrollees, HDHP enrollees, and allocation, on a doll$150,000–$ ar-weighted 249, basis, w999 15.6 ithin IRA accounts by IRA12.3 type34.8 and account27.2 balance10.2 and by gender Below is a comparison of the EBRI IRA Database™ wi Less than 25 12.1% 9.3% th numbers from the Internal Re 42.9% 25.5% venue Ser 10.1% vice and the equities, 22.3 The Restrict With Vanguardrawals Not Wi d Less than $5,000 Grou percent in p: Ta mo rget-Dat dely ney, 13.6 per benefit issues. Un e dersto Fund18.4 c Adoption od. ent in EBRI’s Ed Order fro bond in 2 uc s, 9.5 0 m ation and Re 10, 12.1 GAO. p ercent 47.1 se i ar n ba ch Flance und (EBRI-ERF) performs d 19.1 funds, and 13.6 6.0 perce the char nt in itable , $250,000 or more 4.2 15.9 39.0 28.3 12.6 traditional combined pla in money n enrollees and bo to nds. be in households with $50,000 or more in income. In 2005, CDHP enrollees were Differences in the CDHP, HDHP, and Traditional Plan Enrollees Figure 6 1 Figure 2 ? Bonds—bond mutual $250,000 o fu r mor nds, e directly held bonds, a 10.5 nd other 14.4 100 perce 31.4 nt bon 28.0 d invest 15.6 ment vehicles; allocation to balance $5,000–$9,999 25–34 d funds decrease educationa 18.7 d as l, and 19.0 th scientif e owners a 5.9 ic func 11.7 ged, tions of the Instit with 45.5 the 45.9 allocation to ute. EBRI 23.0 17.4 -ERF equities i is a tax-ex n 7.0 creasi 6.1empt organizatio ng with n individuals with traditional coverage, but a few differences stand out. and a Federal Reserve’s Flow of Funds. ge of the account owner. In addition to presenting the average asset allocation across the accounts, other assets. https://institut 35–44 ional.vanguard.com/iam/pdf/TDFAD.pdf Individual Retirement Account (IRA) Asset Allocation, more likely than traditional Di plan stri enrol bution of A lees to have dults Ahouse ges 21–64 Wi hold income th Pri o vate I f $15 n0 surance, ,000 or more (Figure 2). In Gender $10,000–$24,999 —Gen Source: EBRI IRA erally, th supported b Database.™ e population o y 18.7 contributions f adults within Figure Figure Figure and g 12.9 rants. 6 42 high-deductible a 43.0 nd tra 18.1ditional he 7.3 alth plans is 35–44 14.1 7.4 51.0 18.4 9.2 age among those ages 35–44, before declining through age 70 or older. Less than $5,000 21.0 2.2 48.5 23.5 4.7 this study determines the percentage of accounts that have extreme allocations—less than 10 percent or by Gender and Age, 2008 a by Household Income and Type of Coverage, 2005–2010 $25,000–$49,999 17.6 14.2 40.2 19.1 8.9 200 Reference 6 ?2008, CDHP e Balan nrolle ced fun es wer Di Di ds in stri stri clude buti e buti mor life-cy on of A on of A e lik cleely to /sty dul dul le fu ts A ts A nds and have g ges 21–64 Wi es 21–64 Wi ho targe usehold t-date fund th Pri th Pri incom s. v vate I ate I e ofn n $ surance, surance, 100,000 or more. In 2009, ? Money—mon 45–54 Indiv ey market m idual Retirement utual funds, 13.5Acco mo unt (IRA ney market 9.1 ) Asset A savings accou 48.4 llocatio nn ts, by , and 17.8 IRA certif Ty ica pe, tes of 11.2 2008 deposit; split 5 In most years 0 ?50 between of the survey, men and wom both th en. e CThr DHo Pughout and HD 2H 005 P populations ?2010, 50 per wer ce ent of less lik tra ely to ditional e be youn nrolle g es (ages 21 were male ?34) Conc ALLOCATION BY lusio $5,000–$9,999 n AGE: IRA owners under a 22.7 ge 45 were m 3.2ore likely to 53.0 be invested16.4 in equities and bal 4.8 anced Balanced Wellness Council of America: Making the Case for Workplace Wellness Programs, more than 90 percent in b a particular asset. This hel EBRI Databas ps illustrate the e distribution IRS 2004 Da of ta th e allocat FOF 2008 Data ions across all $50,000–$99,999 15.1 14.7 38.1 20.3 11.7 by Self-Reported Heal by Firm Si aze and Ty th Status and Ty pe of Covpe of Cov erage, 2005–2010 erage, 2005–2010 b Traditional an55–64 d rollov Money eLessThan r IRA include s have simila s m $30,000 oney market mutua 11.3r patterns o l funds and 13.0 f as certi set allocation, ficates of40.7 deposi t (CDs). with th$50,000–$99, e yo 20.1ungest ow 999 14.9 ners (under age CDHP enrolle$10,000–$24,999 es were more likely to hav EBRI Issue B e20.1 hro iefs usehold inco are period 4.2 icals providing exp me of $50,0 54.8 00 ?e $1 rt evaluati 50,000, 15.8 ons of emplo but were not y 5.2 ee benefit issues and more likely 60% Funds Money TM and Insurance Information Insti 50 percen Gender/Age t were female. tute. HDHP Thenroll e Insu ees have also been mostly rance Fact Bond Book 2011. Equity Har spl dcopy, $4 it 50 ?50 5 bet + S&H; PDF, ween me Other n and $58 (discounts women. than the population with traditional coverage. However, in 2010, both the CDHP and HDHP populations were funds combined than those over age 45. Those over age 45 were more likely to be invested in bonds and $100,000–$149,999 13.3 15.7 35.5 21.7 13.9 ww This study w.welcoa.o prov rg/freer ides the f esourc irst look at th es/pdf/making e asset allocat _the_case_0 ion i3n11.p thed IRA acco f unts from the EBRI IRA Database. accounts. 54% 65–69 9.5 16.3 35.8 21.4 17.1 ?60%Balanced fu $25,000–$49,999 nds—balance trends, as well d, lifestyle 17.6 /as cr lifecycle, tar itical analy 5.8 gset-date es of 60% emplo funds, and 52.8 yee benefit po any licies an 17.5 other fun d proposals. ds that have a 6.2 EBRI Notes 47% is a 25) having higher money, bond, and other asset allocations than those just older (age ths 25 -44). Allo 45% cations FemaleSelf-employed With No Employees 43% 50–199 43% to have Our household income of $150,000 or more. And in 2010, CDHP enrollees wer41% e more likely to have 40%40% for multiple co $150,000–$249,999 pies are available). Insuranc 11.6 e Information 17.2 Institute, 110 33.6 38% William St., 38% 22.3 24 Fl., New Yor 38% 15.3 k 37% , NY Whe more like n it has ly to no be a t beg en a es 35 n ? even 44. T 50 here ?50 w split ere no , such as differein nce 20 s in th 10, whe e portio 36% n 46 p n ages 4 e35% rcent36% of t 5 ?54 and no he HDHP po 36% recent pulati dif on w fere ences re other assets. T The per otal Assets Ex centa cellenge of assets in t/Very Good money across $732.9 bi each age group llion34% 33% $3.3 trill was ionaroun Fair/P door 21 perc $3.6 trillion ent. The findings f70 or older rom this unique database 11.0 show the most 18.1 detailed aver 34.1age asset allo 20.7 cation of IRAs cu 16.0 rrently 40% $50,000–$99,999 monthly period 14.9ical providing cu 7.1 40%rrent information on a variety 50.8 19.5 of employ 7.7ee benefit topics. equity and bal Less than 25 anced funds allocations decr 16.4%eased and the 5.2% money a 49.1% llocations incre 22.0% ased as the7.4% account balance 60% 60% partial investment in equities and bonds; and to balanced f$250,000 or more unds an 17% d equities increase th 7.9 rough age 4 19.4 4 then decline a 31.1s age increased for 23.2 bot 18.5 h IRA types. 15% 15% 14% 14% household inc This first step ome of in th 12% e resea 13% $50,0 12% rc 0h 0 of ?$ IRA asset 100,000, but w allocation ere not m w51.4% ill be ore like built ly to upon h ave house in future studi hold income es by exami of $1 nin 00,0 g how 00 or 11%11% 11%10% Will 100 male an 80 is Nort 38, % (800 d 54 h A ) percent m 331 erica: -914 wer Th 6 or e e (212 Will female, th is Health ) 34 9% 6-e 550 dif and 0, e ferences Product -mail:bet 67% pu ivit w bl yee ications@iii.or Survey, 80 n HDHP % 20 enro 10g , , llees an www.iii.org/pu d the population blications w ith in th 20% e portion ages 55 $100,000–$149,999 Unknown Tradi ?ti64. ona l 65% 6% 66% 16.7 12.5 12.78.0 20% 40.0 47.5 20.0 22.8 10.6 9.2 EBRI’s 4% Pension Inv 64% e4% stment Report provides detailed financial information on the universe of 40% 25–34 22.3 3% 3%4.0 40% 44.6 24.6 4.6 availabl publications e, by providin 60% g more asset types from various IRA administrators/recordkeepers. The asset allocation 58% 59%59% 59%58% 56% continued to increase. Acco 54% 54%unts wit 54%h less than $5,000 had higher equity and balanced funds allocations than Unknown 53% 14% 14% 13%13% 15% 13% 50% 12%11% 11%12% 11% 12% 12% 60 0%% 50% 9% 9% 49% 9% 9% 10% more. Th IRA own 20% ee tr rs wi e $150,000–$249,999 Percenta 8% nth more than d may in ge T dica raditi te that one acco 6%ona7% wh l Asset 7% unt a ile there 10.1 s 7% llocate th are stil 87.8% eir as l 9.2 differ sets across the accou 60 20% 0%%ences 8% by 43.8 8% 89.6% household inc nts. T 25.9ome, they h e unique 11.0 are feat less than ure o 8% f this Roth4% 5% defined benefit, defined 5% 5% contri 5% bution, and 401(k) plans. EBRI Fundamentals of Employee 42% 2% 35–44 3% 2% 17.7 3% 3% 6.5 49.2 20.3 6.3 ww traditional w.willis.com/docum coverage was ents/publ not statistically si ications/Se gnif rvices/Employee_B icant. In contrast, dif enefits/Ale ferences i rts_20 n gen 11/H der have ealth_a been nd_Pro fo dund uctivity_S Account Balance—Except for the smallest accounts (less than $5,000), the percentage of assets in Roth found in IRAs is very similar to that in 401(k) plans. When comparing the overall percentage held in equities ? Other assets Less than $5,000 —any remaining assets that 25.0 do not 2.8 fit into the above cat 44.5 egories, suc 22.6 h as stable va 5.1 lue Characteristics of the CDHP Population, 2005–2010 those account 0% s with $50,00 0 or more, but had similar money alloc 0% ations and lower bond and other assets 40% $250,000 or more 5.9 11.9 40% 35.3 31.4 15.4 Benefit Programs offers a straightforward, basic explanation of employee benefit programs in 45–54 Less than 25 24.1 16.0 2.5 9.3 44.9% 52.6 45.6 16.9 20.5 3.9 8.7 CDHP enrollees have higher income than traditional plan enrollees, but the degree to which they have higher what t database hey star is the ability to ted out as i link n 2 accounts 005. within and across data providers to see if IRA owners have different 6 urvey_2 between0 CDH 10_VP enro 5.pdf llees and those with traditional coverage. In 2005, 2006, and 2009, there were no $5,000–$9,999 26.1 3.8 47.9 17.1 5.1 equities and balanced funds declined across each type of IRA as t 13%13% he account 13% 13% balance increased (Figure 5). Rollover 12% 12% 11% Social Security Refo in 40 201( % k) plans from the EBRrm I/ICI 401(k) Database, the numbers matc 9% h closely 10% with 10% those found in the IRA 9% 10% funds, real estate (both investment trusts and directly purchased), fixed 20% 7% and variable annuities, 8% 7% etc. 45–54 55–64 25–34 the priv 24.2 at 13.3 e and public s2.7 e 13.6 ctors. The EBRI Data 53.6 37.9 book on Emplo 14.4 22.46% yee Benefits 5%5.1 12.8 is a stat 5%istical use. Average Rollover Amount $74,528 $59,100 income allocation stra has be $10,000–$24,999 tegies en fallin across the acco g over the course o unts o 23.8 fr if they the survey. split t 4.9 heir assets si 48.9 milarly across 17.0accounts. Furt 5.4 hermore, DIFFERENCES BY HEALTH PLANS: This article examines the population with a consumer-driven health plan statistically significant differences between CDHP enrollees and those with traditional coverage. However, in Rollover I 0% RAs had lower equity allocations consistently across account 0% balances, while Roth IRAs had 65–69 Less than $5,000 reference work o 11.7 20.4 n employ16.2 ee ben 3.0 efit progr 34.2 ams and 48.9 work force-related issues. 23.0 22.5 14.8 5.2 accounts (37.4 percent 35–44 in 401(k) plans 18.2 and 38.5 percen 39.2% 3.8 t in IRAs). 59.1 The bond an 12.9 d balanced fu 6.0 nds percentages SEP/SIMPLE Blahous, C 40% harles. Social Security: The Unfinished Work. $29.95 + S&H. Hoover Press, Chicago Distribution The trend is less clear $25,000–$49,999 with respect to differences in 21.7 th6.8 e income distribution 46.0 when co 19.3 mparing HDH 6.1 P enrollees WorldatWork: 2005 Survey 2006 on 20Workplace 07 2008 Flexi 20b 09ility, ww 2010w.worldatwork.or 2005 g/wa 2006 w/adimLin 2007 k?id=4 2008 8160 20 09 2010 this study will be extended to DC plans as the integration of the two databases is completed. Age Allocations (CDHP) and h 70 or olde $5,000–$9,999 ow it differs r from the popula 12.2 21.6 tion with tra 18.3 4.1 ditional health 33.1 52.2 coverage.21.9 W 17.0 hile it is very 14.5 5.1difficult to 2007 and 2008 CDHP enrollees were more likely than those with traditional coverage to be male, and in 2010 45–54 17.0 5.5 54.5 15.9 7.1 consistently higher allocations. Bond allocations were highest 35.8%for traditional IRAs. Roths had the highest use Average Traditional Contributions $3,798 $3,623 are also simila $50,000–$99,999 r (12.3 percen 3 t and 13.6 per 19.6 cent for bonds 8.5 and 12.3 per 43.7cent and 21.1 12.1 percent in 7.2 balanced Center, 1120 03 050 South 2006 Langle 2007 y Ave., Chic 2008 ago, IL 6 2009 062 20108, (800) 621- 2005 2736 20 or (7 06 7320 ) 70 07 2-70 2000, 08 fax: (8 2009 00) 206 1021- CDHP and HDHP enrollees have consistently reported higher education levels than traditional plan enrollees. with individuals with traditional coverage. By 2010, HDHP enrollees were less likely than traditional plan Overall Allocation Unknown $10,000–$24,999 19.3 20.0 11.5 5.2 39.0 52.9 22.3 16.4 8.0 5.5 generalize the55–64 differences in character 15.9 istics among 8.2 CDHP enrollees, 48.2 high-deducti 18.7 ble health pla 9.0n (HDHP) Contact EBRI Publications, (202) 659-0670; fax publication orders to (202) 775-6312. CDHP enrolle$100,000–$149,999 es were more likely than thos 17.5 e with traditio 10.7 nal coverage 39.8 to be female. 23.5 Specifically, 8.444 percent of of other assets, representing 20 percent of the assets for those with balances of $250,000 or more. $30,000–$49,999 $100,000–$149,999 funds, respectively). Money is significantly higher in IRAs, but if money is combined with GICs and Stable Acco Male $25,000–$49,999 unt Balance—The same genera 17.9 l asset allocation 6.7 patterns 51.3 emerge amo 17.6 ng each6.6 age category 8476, e-mail: orders@press.uchicago.edu enrollees to be both in the lowest (less than $30,000) and highest ($150,000 or more) household income 65–69 12.2 9.2 46.8 19.8 12.0 $150,000–$249,999Subscriptions to 15.9 EBRI Issue Bri 12.5 efs are included 37.1 as part of 24.8 EBRI membership, or as part of 9.6 a In the entire EBRI IRA database in 2008, 38.5 percent of the IRA assets were in equities, 22.3 percent in enrollees, and individuals wi2–49 th traditional coverage, a few differences stand out. CDHP enrollees were male and 56 percent were female in 2010. 200–499 60% 2005 2006 2007 2008 2009 2010 60% Data Orders/ $50,000–$99,999 15.3 8.0 200549.5 2006 20 18.8 07 2008 8.4 2009 2010 30% Less than 25 15.9 5.5 49.5 21.6 7.6 Value CDHP e Fun nrolle ds ie n 4 s have co 01(k) pla nsistently re ns, 22.3 perce porte nt d of t bett he er h assets ealth are represented, compared status than traditional plan with t enrollees. he sam They e have also as the account balance changes (Figure 8). However, the relative allocation levels across the age groups 70 or older 30% 11.4 10.4 44.2 20.0 14.0 $250,000 or more $199 annual sub 11.4scription to 17.4 EBRI Notes and 32.0 EBRI Issue Brie 25.0 fs. Individual 14.2 copies are avail 4able groups 40% . Inst22% ead, they w 24% ere more likely to be in the $50,000 40% ?$150,000 income group. 25% 24% 20% 60%19%19% 18%18% 19% 17% 17% 20% 19% 19% money, 13.6 percent in bonds, 12.1 14% percen 16%t in bala 14% nced funds, a 60% nd 13.6 percent in other assets 17%16%(Fig 15% ure 1). $100,000–$149,999 13% 13.3 11% 9.1 14% 13% 46.6 14% 14%14% 20.9 14% 10.0 14% 25–34 10%18.2 10% 4.2 11%49.1 21.5 6.9 7% See Victoria L. Bryant "Accumulation and Dis 20% 39% tribution of Individual Retirement Arrangeme 5% nts, 2004" SOI Bulletin 20% perce exhibite ntage d bett Source: EBRI IRA Database.™ for Unknown er he money alth in I beha RAvior than s. However, with prepa 19.8 tradi ymit etnt ional does for $25 each a plan ppe 5.7 enr ar to (f hllees at in or printed divi with 50.8 duals res copie p in I ect to s). Change of Address: RAs are m 16.1 smoking, ore likely to exerc 7.6EBRI, 1100 13th St. ise, a hn ave more d, The EBRI IRA Database™ is an ongoing project that collects data from IRA plan administrators, and currently show some 31% differences. F 32%32% or instance, bond allocations are hi 40%gher within each accou 24.2% nt balance grouping for Gender Al AGE: The CDHlocations P and HDHP populations were less likely to be young (ages 21 ?34) than the population with 40% 27%28% 0% 26% 26% Subscriptions a 35–44 25% 13.625% 6.5 0% 51.6 19.6 8.7 Web Docu Marital Stat $150,000–$249,999 ments us and Children— 12.0 In 2006 ?20 23% 09, 10.1 HDHP9% enrolle 44.5 8% es w 8% 10% ere 9% less like 22.1 8% 8% ly to 10% be mar 11.3 rie 8% d th 8% an When combining the allocati Good on of balanced f21% unds attributable to 6% equit 5% ies to the equity allocation, Heal 7% th Proble7% m*7% 7% 7% the total 7% 19% 19% 20% 7 22.2% Balanced funds include life 16% -cycle/style funds and target-date funds. 16% (Spring 2008): 15% Rollover 90 -101, www.irs.gov/pub/i NW, Suite 878 15% rs-soi/04inr , Washington, DC etirebul.pdf , 20005-4051 for the results from the Internal R , (202) 659-0670; fax number, (202 evenue ) 775-6312; than recently, o contains in 20% 90 perc Edu b for esi ent or mor cm ation ty rates. HDH ation on —CDHP e e 1 of 4.1 mill their assets P enro nrolle ion ac llees es are muc co ha inunts of ve also equiti h m e 11. s tha bee ore like 1 n million uni n care 4 oly tha nsistently les 01 n( ind que k) par indivi ividu t sicipants. likely th als w duals wit ith traditional an t h htotal assets ose with co tradit verage of $ ional 7 to ha 32.9 ve older IRA owners, with an increasing level as the account balance increases across all ages. 45–54 12.2 8.7 0% 47.4 20.6 11.0 traditional cov b $250,000 or more erage. However, in 2010, b8.5 oth the 5 CDHP 12.2 and HDHP po 38.8 pulations 20.2% we 25.4 re more likely to 15.1 be ages Age—Asset allocation between the genders across each age group are very similar (Figure 6). For those wit 80% h traditional coverage. Similarly, in 2006 ?2007 and 80%2009, CDHP enrollees were less likely to be equity holdin Money includes money market mutual funds and certificates of deposit (CDs). gs of IRA owne rs is 45. e-mail: subscri 8 percent. ptions@ebri.o Male and femal rg Meembe IRrship Information: A owners had virtually i Inquiries reg dentical arding EBRI Less than 25 4.1 10.0 40.2 28.8 17.0 American Academy of Actua2 ries: Pension Risk and Your Retirement: Understanding Retirement Risk and Service; and se 0% 20% e Board of Governors of the Federal Reserve System, Flow of Funds Accounts of the United States 55–64 10.3 13.5 57%57% 38.4 22.6 57% 15.1 57% coverage to report that they smoke, but no recent di (cont'd.) fferences were found in exerc 55%ise 54% rates and 54% differences 54% a colle billion,ge as o or f y post-graduate ear-end 2008. ed EBRI ucation is c inu all rre years of the s ntly collecting/proce urvey (Fi ssing dat gure 3). 53% a for y In co 53% e ntrast, 23 percent ar-end 2009, and th of e 51% 16.9% 51% 35 ?60 44. % There were 16.7% no differences in the portion ages 45 ?54 and no 49% recent differences in those ag 49% es 55 ?64. membership and/or contributions to EBRI-ERF 60% should be directed to EBRI President/ASEC instance, fema 45% les and males under age 25 had 49.1 percent and 49.5 percent, res46% pectively, 45%in equities, wh 46%ile 25–34 21.4 4.8 39.1 44% 29.1 5.6 married than those with traditional coverage. In 2010, there were no statistically significant differences in allocations i Equity al n bonds, locati equ ons for t 38%ities (not he yo inclu ungest ding (u the nder balanc agee 3 d f 5) IRA und port owners ion), an with d mo small accou ney. However, nt balances ar males wer e th e e Overcoming C 36% 65–69 hallenges through Public8.8 Policy Options, 16.6 33.9 23.3 17.4 The Flows and Outstandings Third next step 34%in asset al 35%34% loca 35% tion researc Quarter 2010, 34%34% h fwww.f rom this 34% ederalr database is to eserve.gov exam /releases/Z1/Cur ine how IRA orent/z1.pdf wners 14.7%with m foo r the Flow re than 33% 32% 32% 14.3% 30% 14.3% 30% 40% 29% 28% traditional have database never be wi pla ll n enro expa en foun nd signi llees d in ha fob ic d a antly in es colle ity rates the ge de . f It cannot be det uture gree 27% an (not d 11 onlpercent y longit ermine 40% had a udi d from the nally graduate but also on survey degr wh an an eeether pla . Tra nual dition in n des di 13.8% avidual l plan ign had total). an Chairman Dallas Salisbury at the above address, (202) 659-0670; e-mail: salisbury@ebri.org 35–44 16.2 6.8 47.1 22.4 7.5 women had 33.1 percent a 12.7% nd men had 33.6 percent in equities among those age 70 or older. Furthermore, a 2005 70 or olde 2006 r 2007 2008 9.6 2009 2010 17.8 2005 33.6 2006 20 22.2 07 2008 16.9 2009 2010 marriage rates by type of health plan. slightly mor lowest across the e likely to hav age grou e a ps. ssets in the However, when bala other catego ncry, es rwhile each f $1 emales 0,000 had a or more, th higher e y percenta ounger IRA ge o o f a wssets in ners 11.6% ww of Funds result w.actuary.o s. rg/pdf 11.9% /Hill_Briefing_Pension_Risk_and_Your_Retirement_April%204_2011.pdf one acco 20% unt allocate their assets across the accounts—is the distribution similar or much different? The INCOME AND EDUCATION: CDHP enrollees have higher income t 20% han traditional plan enrollees, but the impact on hea45–54 lth status, smoking, exerc 14.0ise, or obesity r 9.3 ates. 43.8 22.9 9.9 10.4% enrolle For each ac es we co reunt much within more theli kely than database CDH , the P IRA type, enrollees the to account have only balan a hic gh school e, any contri degree, butions 35 ma perc de en durin t and g t h e Unknown 14.9 9.7% 12.5 38.8 22.7 11.1 8.5% decreasing percentage of equities and an increasing percentage of bond and other assets were found as age 0% 10% balanc have signifi ed fuca nds. IRA ow nt increases in ners equity under a allocations, so th ge 45 were more at th likely to ose ages 0% be inves 25 -34 ted i with the lar n equities and ba gest account lancedbalanc funds es Editorial Board: Dallas L. Salisbury, publisher; Stephen Blakely, editor. Any views expressed in this publication and those of the authors should results could show that the accounts with extreme allocations are only a part of an individual’s total portfolio, 3 degree to w 2005 hi55–64 ch they 2006 have20 high 07 er i 20n 08come 11.5 20 has 09 been $150,000 2010 14.3 falling. C orMoD reHP a 20 34.8 05nd HDHP 2006 enroll 24.9 2007ees have 2008 14.4 consistently 2009 2010 Unknown 8 percent, year, the asset allocation, respectively. and certain 6.6% demographic characteristics of the account owner are included (among Given the significant changes in the equity 60% markets during 2008 and 2009, the overall allocations are likely to Individuals in HDHPs were less likely than those with traditional coverage to have children in 2006, 2007, and not be increased ascribed to the officers, for both genders. trustees, members, or other sponsors of the Employee Benefit Research Institute, the EBRI Education and Center for Retirement Research at Boston College: Do Social Security Statements Affect Knowledge and combined t had the largest equity al han those over a locag tion. T e 45. Those hose un over age der age 4 45 5 we were much re more lik more ely to be i likely to use nvested balance in bond d f s a unn dd oth s than er Less than 25 65–69 10.0 29.4 17.0 4.0 31.5 45.2 25.0 17.1 16.4 4.4 instead of the only assets the owner has. When IRA accounts are linked (as the EBRI IRA Database permits), reported higher education levels than 40% traditional plan enrollees. Research Fund, or their staffs. Nothing herein is to be construed as an attempt to aid or hinder the adoption of any pending legislation, regulation, other it have haems). d substantial changes Furthermore, th when the data e accounts can be l results fr inke om 2009 and 20 d by the account 10 ar owner e analyze to ad. Th ggregate e equity allocations the accounts to 2009. In contrast, CDHP enrollees were more likely tha 500 orn Mo those re with traditional coverage to have children in 15% 25–34 29.4 3.8 44.0 18.9 3.9 Behavior? http 70 or older ://crr.bc.edu/images/s10.0 tories/Briefs/IB 18.1 _1111% -6_508.pdf 32.1 10% 10%10% 11% 23.6 16.3 20% 9% 9% 9% 9% 8% assets. The were older Ipercentage of as RA owners, with those sets in mon un 7%der ey age ac 7%ros 35 an s each 7% d wia th ba ge grou lances p was less than $ around 7% 10, 21 per 000 cent. havin g particularly or interpretative rule, or as legal, accounting, actuarial, o 4% r other such prof 4% essional advice. the overall average unique individual balance i3% ncreased by over 25 percent relative to the average on all Acco Self-Reporte unt Balance d Health Sta —Within each tus—gen The surv der, th ey di e asset a d not f lloc ind di ation ffer trends a ences in cross the asset categor self-reported health status ies were 54% 52% 50% the i could have gone down significantly, if ndividual level both across and withi individuals were more likely to have n data providers, which allows 48% moved their as for 48% behavioral 49% sets out of equities in studies at both the 35–44 60% 20.7 45% 5.5 47.3 20.6 5.9 Unknown 16.0 12.8 43% 35.9 42% 25.3 41% 10.1 2010, but t 0% he differences prior to 2 0%010 were not statistically sign 40% ificant. 36% 36% 38% 37% HEALTH: CDHP enro 8 llees have consistently reported better health status than traditional plan enrollees and 33% 31% higher allocati 2005 ons to ba 2006 lance 2007 d funds. 2008 2009 29%2010 2005 2006 2007 2008 2009 2010 40% accounts. essentially between HDH Co equivalent P nseque enrollees as th ntly, an databases that e accou d indivin duals t balawith tr nce i do not ncrease aditio have na t d h l covera (Fi e a gb ur ility e 7 ge. Ho to li ). Bo nk accounts o nd a wever, nd other in fivew assets allocati out of ned by th six ye e sar ame ons s of the 45–54 Balanced Funds B 18.3 ond 7.7 Equity 44.4 Money22.2 7.5 Other As the acco 2009 than to have left their a un Source: EBRI IRA Database.™ t balances incr ssets in equities. ease, the percentage of assets in equities and balanced funds combined individual and account levels. EBRI Notes is registered in the U.S. Patent and T 20% rademark Office. ISSN: 1085 ?4452 1085 ?4452/90 $ .50+.50 exhibited better health behavior than traditional plan enrollees with respect to smoking, exercise, and, a Source: EBRI/Commonw 55–64 ealth Fund Consumerism in Health 15.9 Care Survey, 2005–2007; EBR 11.2 I/MGA Consumer Engagement in H 36.2 ealth C 25.9are Survey, 2008–2010. 10.8 Balanced funds include lifecycle/style funds and target-date funds. increase survey (200 d as t 9 was the he account exception), balance o 0% it f th was fo e IRund that a As increase CD d. HP enrol Once the acco lees were unt more balanc lik e w ely than as $5,0 tra 00 or ditio more, the nal plan declines. For instance, among those IRAs with balances from $10,000 -$24,999, 50.4 percent of the assets * Health problem defined as fair or poor health or one of eight chronic health conditions. b recently, obesity rates. It 65–69 cannot be deter 14.0 mined from 13.8 the survey whet 32.7 her plan design ha 26.9 d an 12.5 impact on Money includes money market mutual funds and certificates of deposit (CDs). Source: EBRI IRA Database.™ Balanc 70 or olde ed funds r include life-cycle/style f13.1 unds and target-date 15.2 funds. Money includes 32.9 money market mutual 24.5funds and certif14.2 icates of deposit 2005 2006 2007 2008 2009 2010 health status, smoking, exercise, or obesity rates. © 2011, Employee Benefit Research Institute ?Education and Research Fund. All rights reserved. ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org No No No No No No No No No No No No Nottttttttttttte e e e e e e e e e e e es s s s s s s s ss s s s(CDs • Ma • Ma • Ma • Ma • Ma • Ma • Ma • Ma • Ma • Ma • Ma • Ma • Ma ). y y y y y y y y y y y y y 201 201 201 201 201 201 201 201 201 201 201 201 2011 1 • Vol. 32, No. 5 1 • Vol. 32, No. 5 1 • Vol. 32, No. 5 1 • Vol. 32, No. 5 1 • Vol. 32, No. 5 1 • Vol. 32, No. 5 1 • Vol. 32, No. 5 1 • Vol. 32, No. 5 1 • Vol. 32, No. 5 1 • Vol. 32, No. 5 1 • Vol. 32, No. 5 1 • Vol. 32, No. 5 • Vol. 32, No. 5 11 15 21 10 23 22 18 16 4 3 8 2 9 Unknown 19.1 9.7 39.0 24.0 8.2 Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2005–2007; EBRI/MGA Consumer Engagement in Health Care Survey, 2008–2010. Source: EBRI IRA Database.™ 2005 2006 2007 2008 2009 2010 a Balanced funds include life-cycle/style funds and target-date funds A monthly newsletter from the EBRI Education and Research Fund © 2011 Employee Benefit Research Institute Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2005–2007; EBRI/MGA Consumer Engagement in Health Care Survey, 2008–2010. b ebri.org Notes • May 2011 • Vol. 32, No. 5 ebri.org Notes • May 2011 • Vol. 32, No. 5 ebri.org Notes • May 2011 • Vol. 32, No. 5 ebri.org Notes • May 2011 • Vol. 32, No. 5 ebri.org Notes • May 2011 • Vol. 32, No. 5 ebri.org Notes • May 2011 • Vol. 32, No. 5 ebri.org Notes • May 2011 • Vol. 32, No. 5 14 12 19 13 17 6 5 Money includes money market mutual funds and certificates of deposit (CDs). ebri.org Notes • May 2011 • Vol. 32, No. 5 ebri.org Notes • May 2011 • Vol. 32, No. 5 20 7 Figure 9 Traditional Traditional Traditional Tr Traaddititio ionnaall Traditional Traditional Traditional Percentage of Individual Retirement Accounts (IRAs) With Extreme Asset Traditional Traditional Traditional HDHP HDHP HDHP HDHP HDHP HDHP HDHP a HDHP HDHP HDHP HDHP Allocations, by Various Characteristics, 2008 CDHP CDHP CDHP CD CDHHPP CDHP CDHP CDHP CDHP CDHP CDHP Traditional Traditional Less Than More Than Traditional Tr Traaddititio ionnaall Traditional Traditional Traditional Traditional Traditional Traditional HDHP Less Than More Than HDHP Less Than More Than Less Than More Than 10% in Bonds 90% in Bonds HDHP HDHP HDHP HDHP HDHP HDHP HDHP HDHP HDHP b b b b CDHP 10% in Money 90% in Money & Money & Money CDHP 10% In Bonds 90% In Bonds 10% In Equities 90% In Equities CDHP CDHP CD CDHHPP CDHP CDHP CDHP CDHP CDHP Traditional All Traditional 84.7% 2.3% 38.3% 29.6% 69.5% 13.9% 57.0% 16.9% Traditional Traditional Traditional Tr Tr Traaaddditititio io ionnnaaalll Traditional Traditional Traditional Type HDHP HDHP HDHP HDHP HDHP HDHP HDHP HDHP HDHP HDHP HDHP Traditional CDHP 83.4 CDH3.3 P 36.6 32.3 73.3 10.6 59.7 14.8 CDHP CD CDHHPP CDHP CDH CD PHP CDHP CDHP CDHP Roth Traditional 92.2 Tradition1.8 al 36.1 41.1 77.2 9.9 70.5 12.0 Traditional Traditional Traditional TrTraaddititioionnaall Traditional Traditional Traditional Traditional Rollover HDHP HDHP 80.2 HDHP 1.8 41.2 18.9 Traditiona60.6 HDHP l 19.5 HDHP 44.7 22.2 HDHP HDHP HDHP HDHP HDHP HDHP Traditional SEP/SIMPLE CDHP CDHP 86.3 CDH1.8 P 39.2 28.6 67.1 CDHP 16.6 CD 55.8 HP 19.0 CDHP HDHP CD CDHHPP CDHP Traditional CDHP CDHP HDHP Gender Traditional Traditional Traditional Traditional Traditional Traditional Tr Traaddititio ionnaall HDHP TradCD itio Hn Pal Traditional Traditional CDHP Female 84.9 HDHP 2.6 40.2 29.7 69.8 HDHP 14.5 HDHP 57.3 17.8 HDHP HDHP HDHP CDHP HDHP HDHP HDHP Traditional HDHP HDHP Traditional CDHP Male CDHP CDHP 83.3 CDH2.1 P 35.3 29.0 68.6 13.1 CD 55.0 HP 16.0 CDHP Traditional CD CDHHPP CDHP CDHP CDHP HDHP Traditional Traditional HDHP Tra Unknown ditional Traditional 89.6 Traditional Tradition2.2 al 43.6 32.1 71.9 15.1 63.3 17.9 HDHP Traditional Traditional Traditional Traditional Traditional CDHP HDHP HDHP CDHP CDHP AgeHDHP HDHP HDHP HDHP HDHP HDHP HDHP HDHP HDHP Traditional CDHP CDHP Traditional Less than 25 CDHP 96.2 0.8 51.1 35.0 71.7 18.1 68.5 19.1 Traditional CDHP CDHP CDHP CDHP CDHP CDHP CDHP CDHP HDHP HDHP 25–34 94.4 0.8 47.4 30.8 67.1 20.1 62.4 21.1 HDHP CDHP CDHP 35–44 90.7 1.1 35.8 35.4 71.6 14.1 63.6 15.5 CDHP Traditional 45–54 87.1 1.7 35.0 32.9 Traditiona71.2 l 13.1 60.3 15.2 Traditional HDHP Traditional 55–64 81.7 Traditiona 2.6 l 37.2 27.5 68.6 13.3 53.6 16.7 HDHP Traditional HDHP Traditional Traditional Traditional Traditional Traditional Traditional Traditional Traditional CDHP 65–69 HDHP 76.8 3.3 38.3 23.6 66.1 13.1 47.8 17.7 HDHP HDHP HDHP HDHP CDHP HDHP CDHP HDHP HDHP HDHP HDHP HDHP Traditional 70 or older CDHP 73.2 5.7 41.4 21.9 67.9 11.9 46.8 19.2 CDHP CDHP CDHP CDHP CDHP CDHP CDHP CDHP Traditional CDHP TraditioCD naHlP HDHP Unknown Traditional 88.7 Traditiona 2.0 l 40.7 30.6 71.0 14.7 Traditio 61.4 nal 17.2 Traditional Traditional Traditional Traditional Traditional Traditional HDHP Traditional Traditional CDHP HDHP Account Balance HDHP HDHP HDHP HDHP HDHP HDHP HDHP HDHP HDHP HDHP HDHP CDTr HPaditional CDHP CDHP Less than $5,000 95.8 CDHCD P H1.9 P 49.7 38.4 68.6 CDHP 22.8 CD 64.9 HP 24.9 CDHP CDHP CDHP CDHP CDHP CDHP HDHP Traditional Traditional $5,000–$9,999 Traditional 91.8 Traditional 2.5 39.8 38.3 75.4 12.5 Traditio 68.2 nal 15.4 Traditional Traditional Traditional Traditional Traditional Traditional Traditional CDHP Traditional HDHP HDHP HDHP $10,000–$24,999 HDHP HDHP 87.5 2.6 34.8 34.0 73.9 10.7 HDHP 63.2 13.8 HDHP HDHP HDHP HDHP HDHP HDHP HDHP CDHP CDHP CDHP $25,000–$49,999 CDHP CDHP 81.0 2.7 33.1 26.1 70.2 CDHP 10.8 CD 54.3 HP 14.4 CDHP CDHP CDHP CDHP CDHP CDHP Traditional Traditional $50,000–$99,999 Traditional 75.2 2.4 31.3 19.4 Tradit 67.0 ional 10.5 Traditio 46.7 nal 14.0 Traditional Traditional Traditional Traditional Traditional Traditional HDHP HDHP HDHP HDHP $100,000–$149,999 HDHP 70.4 2.3 32.0 13.7 62.5 10.8 HDHP 39.0 14.4 HDHP HDHP HDHP HDHP HDHP CDHP CDHP $150,000–$249,999 65.1 2.2 31.8 9.9 59.8 CDHP 10.3 CD 32.8 HP 13.9 CDHP CDHP CDHP CDHP CDHP CDHP CDHP Traditional Traditional Traditional $250,000 or more 57.9 2.1 32.3 5.9 Tradit 55.3 ional 9.2 24.5 13.3 Traditional Traditional Traditional Traditional Traditional Traditional Traditional HDHP HDHP HDHP HDHP Source: EBRI IRA Database.™ HDHP HDHP HDHP HDHP HDHP HDHP HDHP CDHP a CDHP Extreme asset allocations refer to almost no assets (less than 10 percent) or almost all (more than 90 percent). CDHP CDHP CDHP CDHP CDHP CDHP CDHP CDHP CDHP Traditional Traditional b Traditional Traditional Money includes money market mutual funds and certificates of deposit (CDs). Traditional Traditional Traditional Traditional Traditional Traditional Traditional HDHP HDHP HDHP HDHP HDHP HDHP HDHP HDHP HDHP HDHP HDHP CDHP CDHP CDHP CDHP CDHP CDHP CDHP CDHP CDHP CDHP CDHP