401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2022

Key Findings:

401(k) plans draw in many young retirement savers and new hires. At year-end 2022, 40 percent of 401(k) plan participants were in their twenties or thirties, and 23 percent were in their forties. Forty-eight percent of 401(k) plan participants had five or fewer years of tenure, including nearly one-quarter who were recent hires (two or fewer years of tenure).
Younger 401(k) plan participants tend to be invested more in equities than older 401(k) plan participants. On average, at year-end 2022, 71 percent of 401(k) participants’ assets were invested in equity securities through equity funds, the equity portion of balanced funds, and company stock. Younger participants, as a group, had nearly 90 percent of their 401(k) plan assets invested in equities, compared with 57 percent of 401(k) plan assets among participants in their sixties.
Ownership of investments in equities is widespread among 401(k) plan participants. Overall, 97 percent of 401(k) participants had at least some investment in equities at year-end 2022.
More 401(k) plan participants held equities at year-end 2022 than before the financial market crisis (year-end 2007), and most had the majority of their accounts invested in equities. For example, more than 90 percent of participants in their twenties had more than 80 percent of their 401(k) plan accounts invested in equities at year-end 2022, up from less than half of participants in their twenties at year-end 2007.
Target date funds continue to be an often-used investment option among 401(k) plan participants. At year-end 2022, 85 percent of 401(k) plans, covering 88 percent of 401(k) plan participants, included target date funds in their investment lineup. Target date funds were 38 percent of the assets in the EBRI/ICI 401(k) database, and 68 percent of 401(k) participants in the database held target date funds. Also known as lifecycle funds, these funds are designed to offer a diversified portfolio that automatically rebalances to be more focused on income over time.
401(k) plan loans are widely available, but a small share take them. At year-end 2022, 84 percent of 401(k) plan participants were in plans allowing loans, but only 15 percent of 401(k) participants who were eligible for loans had loans outstanding against their 401(k) plan accounts. Loans outstanding amounted to 10 percent of the remaining account balance, on average, at year-end 2022, in line with recent history.
The average 401(k) plan account balance tends to increase with participant age and tenure. For example, at year-end 2022, participants in their forties with more than two to five years of tenure had an average 401(k) plan account balance of about $38,000, compared with an average 401(k) plan account balance of about $312,000 among participants in their sixties with more than 30 years of tenure.

Figure A10 401(k) Plans' Loan OfferinF gi g au n re d A P4 articipant Use by Plan Size Figure 6 Age Composition of Selected 401(k) Plan Account Balance Categories Average Asset Allocation of 401(k) Plan Accounts by Participant Age Percentage of 401(k) Plans Offering Loans by Plan Size, 2022 Percentage of participants with account balances in specified ranges, 2022 References ................................................................ .......................................................................................... 26 Rel 40 Younger 4 Owner 40 Appen References Ho Plan Sponso ld 1(k) 1(k) at en, ionshi Sarah ship dix Parti Plan r 0p of EBRI/ : of Targ Council 1(k) , Dan EBRI/ICI ci Lo iPlan pants’ el Schra of an et Am Dat A P Iar CI 40 ct erica. s Acco se Funds ti 40 , Michael ivit cipa 1(k) 20 1(k) D y Var 2 nts Have unt 3. V Bo 6 Database ar 6th at Balances Tend to Rise with Partic ies with Partic gd ie abase an, An s with P Incr and Jas nual Pla Sur ea F ar sed C ns to t ion Se vey gti urcipa of e A oncent l ig ipant Age he Un Profit 1ma nt A 3 n. Sharin ge and Ten iver 20 ra2 ti4 ons in E se of Al . g “Americ , Ten and 4ure 01 l 4 quit ure, an (01 k V )ie iew Plans: (k) and Ac ipant Age s Sinc s on D Pla Refl ns e t efi ecti co he Financ ned unt B ng Contri and 2022alance b ial Plan ution Sarah Holden is Senior Director of Retirement and Investor Researc 1h at the Investment Company Institute (ICI). 401(k) Plan Asset Allocation, Account Balances, and Loan Percentage of account balances, 2022 93% Average Asset Allocation of 401(k) Plan Accounts by Participant Age, 2021 S in place by th small, in equities, ecurity Admin as US Gene the g e istrati Pen lide pa ral Acco sio on 2012 f n P th generall rot unecti ting Office 1997 or furthe on Act o y reflects the declini r detail) f 2006 (PP foun . This cha d tha A), w ng p t mo hich li nge errcentage in methodo e tha mited the n 9 of eq 5 percent length of time partici log uiti y re es in the of 401(k) pl sults in a d portfo rama anpan li s tha o as it tic ts co increase in th t o app ff uld er l roaches a be requ oans h 90%e numbe ad a ired to nd p t lea a hold sr of ses st one Tenure Crisis Experi Plan Sav ence ing., C 2hicag 023.” o: ICI Plan Res Se ponsor arch R Cou eport nci (l Feb of America. ruary). Avail able at 89% www.ici.org/system/files/2024-02/24-ppr-dc- Steven Bass is an economist at ICI. Craig Copeland is the Director of Wealth Benefits Research at the Employee At year Brady, Peter, -end 2 02 and 2, M 1ichae 5 perce l Bnt of ogdan. those 2010. “A Loo eligible for l k at oa P ns had 4 rivate-Secto 01(k) 88% r Ret plan irement loans outst Plan In and com ing, e Af a88% nd lo ter ERISA an activ .” ity va Invesri tm es with ent Endnotes ................................................................................................ Figure A11 ............................................................ 28 Young The 2022 er partic EBRI/ICI 40 ipants were 1(k) m databas ore like e ly to is a rh eold presentativ target de ats e ample funds of than the e old ser timat partic ed univ ipaners ts. At year e of 401 -en (k)d p2 la 02 ns. 2, At 77year percent o -end f Figure 5 Activity in 2022 85% 1 Age Group 82% co the ta plan pa individuals rep Sources a mpan rget date rtic y sipan tond ck contri ort t wi , w Type ed as hich is usu th a buted to s of D n outstan active partici ally i at their acco ding lo andicated in the pan an ts in 401(k) pl un . ts by fund’s their emplo an na s; in 2004, the nu me F yer; sp ig . The ta ure 1 ecified rules regarding rget da mber of active pa te gen 3, 4 erally is the date the n rticipants otificatio at whic increased to 53.1 mi n of blackout perio h the typical ll ds ion ; plan-saving.pdf. Percentage of account balances, 2021 age, Bene tenur Com fit Res e, a pan nd ear acco y Ich In nstunt ba itute Res stitutlance ( e (earch EBRI) Fig .Pers ure 10) Thanks pectiv . Of thos to Adam Bens e4 0 11 6, n (ke partici )o. 2 Loa (n Nove i mhon, EBRI B pan almber) a ts n in ce p s.la Availa data ns off compl berin le at g lianc w oans ww.i e , th an ci.d org/ e Ih T direc ighes pdf/pe t perc tor r1, f 6-or enta 02data .pdf ge.s of Balanced Funds GICs and partici Mor 2022 e , al 4 pan 01(k) l 401 ts in plan partici (k) the plans h ir tw 40enties 1eld pan (k) a total o tP h sl h a el n eld e d A tar cf $6. c qu ge oiti u t date f n 4 es at year ttrillion Balund an ic ns - e ass , co e snd In e mpared 2 c ts 02 r, and ea 2s than e with t W he da at ith6 y 1 P tabas ea p ar rercent t-ien ce ip d 20 ra ep of nres t07 part Aents g , e and icip a ab n a d ants l o T ar ut e i ge n 1 n u 3 rt percenta rheir pe e rce sint of xties ge tha o (Ff igu t re 9% Figure 4 75% Poterba, 60s James, Steven F. Venti, a4 nd Davi 01(k) P d aA. rtiW cip ise. an 200 ts R7. ep“rRise o esentf 40 a R 1( ak n)g P el ans, of A Lifet gesime Earnings, and Wealth at inve (new metho and Many Fact sto requ r for who ired q d) ors A ua from 44.4 mi m tha rterly statem ffect 4 t fund is 01 llion ( ents th designed (k) ol d method Part at mu ici wo st pants’ A uld reach ; see US D include retirement age a n cco epar otunt Bala ic Fe high itment of La g15% ure A lighting t 3nce and s bor, s the importance of diversificati op making n Employee Be ew nef inves its Security tments in o Administrati n (see Jo the fund. int on 2021b). By Sarah Holden, ICI; Steven Bass, AveraICI; a ge and mnd ediaCraig n loan baCo lancpel es fand or 401 , EBRI (k) Age 23 42 Equity Target Date Non-Target Date Bond Money Other Stable Company Memo: 26 tabulations. This Issue Br Aief ver a was ge 4writte 01(k) pn with lan acco as unstist baance lance from by pa the rticip In ants a titute’s r ge and teesear nure, ch and 2022 editorial staffs. Any views Several partici pan recor ts wi dkeepi th outst ng o and rgan ing loan izations bal provid ancesed w r erecords e amo o ng F n ac ig partici urtive pa e Apan 2 rtici ts in p the antsir i f n 40 orties o 1(k) p r fla ifties. P ns at ye ut a arnother -end 202 way, a 2. Th e ss izab e le A8) tot yo ung al. Fo . r a compl er EBRI/I Th inves e dat CI tor et abase also analys e time series o s had hig is of 40 covers her conce 1( f th k )e percen 19 plan ntratio percent targ tag ns in eq et d of e of eli t at he univers e fun uities. gible 401 d iOvera nves e (k) of tor partici active ll, sat fin yea ds pan 40 r that the ts wi - 1( en k) d 202 plan th outstan majo 2 p , arti 3r pe ity of ding 401(k) l cipan rcent of tts hem a and 401 oans a r 12 e (k) hol pe p rc di nd loan la n ent n g on of e a all ge- 50s Distribution of 401(k) Plan Account Balances by S 3i , ze 4 of Accoun24% t Balance April 30, 2024 • No. 606 Percentage of active 401(k) plan participants and 401(k) plan assets by participant age, 2022 66% 2, 3 3 5 Holden, Sarah Retireme , and Jack nt.” NBER B Van ala W n Derhe cork eS d n F ing Pap a u i. n p2 d s001a s hoer, n t p o . “ a fr 4 to. Y ic 01(k) e i 13 pa ar n-09 tE s P n w 1la id ( th n A May 4 40 0s 1 1s () (k et All . C k ) )lo a P ambridge, MA: n locat a s,n 1 A 9 G io 9 c I8 C n, c –s o 2Acc 0 u 2n 2 atount n B National d al B an al cances, e B s ure au and Lo of Econom an Actiivity c Re in searc 199 h. 9.” Co As the mmit DOL tee on notes: “In a p Taxation 2006). urely economi c sense and for research purposes, individuals in these groups should not be included Brady, Peter, and Michael Bogdan. 2016. “A Look at Private-Sector Retirement Plan Income After ERISA, 2015.” ICI GroFigures up Funds Funds Balanced Funds Funds Funds Value Funds Stock Other Unknown Equities 36 43 24 Figure A7 majority expr of ess eli edgi in t E ble Bhis re R 40 I/I1 C (Ik port are ) 4 0 p1 articipants (k) D thos atae b iof a n all a s the e R a e ge p uthor an r e grou senps have ts d a s ho Wuld i n de o lo not Cran o obe ss uts as Se cribe tanding at ctiod n to t of the al he of l. 4For ficers, trus 01(k exam ) Unpl ivte e, er es 94 se , or other percent of pl In an any recor 40 g sive dke n yep ear, the ers include change in mutual a partici fund cp om ant’s accou panies, ba nt nks bal , i anc nsurance e in th compan e database i ies, a s t nd he co sum o nsultin f tg firms hree fact . Althou ors: gh the amounts a app partici 40 1 Lifes ro (k) priate pan plans. tyle fund ts s a ta held prget date ercenta The di s mainta no eq ge of th stri u f in a pr ities u bu nd. 17% tio , d Pe rema e edetermined risk n r ow cof en n from ass taining 40 geets of 13 percent , p par1(k) a tic rticipants, ip level and a plan a nts w at ith cco a a y ge cear nd pl un cnera ou t balan -n eta nd 2007 ll b ns in y u alan ce, se wo c the e se s i(n data Fi e Ho rds su sgu pec rlden et al. 2013. base e ifch as ie 8d ) . ra for Yo “co ngung e202 snse , 2er 0 2 rva 2 401 2 is sim tive, (k) ” “mo ilar partici toderate,” o the pan uts nive w r ere rse of 1 2 Age Equity Target Date Non-Target Date Bond Money Other Stable Company Memo: Inves Availab tm le ent at Co www.n mpany I ber.or nstg/paper itut 401 e (kPers ) p sl/w13 an pe pctiv ar091 tice ip . 7, a nt no. acco 1, una t Y nd be aa la rEBRI Iss n sc o ef s ,Te s n eu lue Bri e rc eted yef ea , n rso. 230 (January). Available at 20sin the count of 26.3%active partici 65.6% pants.” However, 1.7% the form2 sche .4% dule ne 0.2eded to % mak 2.e the 0% adjustment is no lo 1.2% 0.4nger % requ 0.1 ired. % Usi8 ng 9.5% 30s Research Perspective 22, no. 8 (December). Available at www.ici.org/pdf/per22-08.pdf. Distribution 40 1 o(fk )4 p 0la 1n ( k c) h a P ra la cn tes ri, s tP ica s r btyic niu p m ab n etrs o,f a pn ard tic A ips an ste s:t s E B b R y I/ IIC nIv 4 e 0s 1t (m k) e dn att a b O as p etions, 2022 15 sponsors of EBRI, Employee Benefit Research Institute-Education and Research Fund (EBRI-ERF), or their staffs. EBRI/ICI participan p ts roj ine the ct has coll ir twenties ecte, d data 80 percent from 1 of 99 p6 articip throu ants gh 2 in the 022, the ir fort un ies, ive an rse dof 88 data perce prov nt of iders partic may v ipaary nts i fn rom their year sixties to “aggress At yea ive” in their na r-end 2022, 59 me to i percen 2, 3 ndicate the t of non–target da fund’s risk level. te balanced Lifes mutu tyle fu al fu ndnd a s gene ssets were as rally are inc su luded in the med to be i 3 no nvn e– sted in equ target date ities 5 much more plans as repor likted by th ely to hold e eq US Ye uities an Dep ar artm d ent to Av ho e orfa Labor (DOL ld ge high Loan conc Outs )e t a ntratio (n Fi dg in ure g ns in A2) eq M . eduities at ian Loan year Outs-tend 202 anding 2 compared with ye 52% ar-end Definition of 401(k) Plan Account Balance 51% Group Funds Age GroFunds up Ba 0la tn oc 2 e d Funds>2 to Funds 5 >5 Funds to 10 Va>1 lue 0 F tu on 2 d 0s S >2 to 0c t ko 30 Other >3U 0nknown Equities 30s 20s 32.8% 55.6% 1.9% 3.6% 0.3% 2.8% 2.3% 0.6% 0.1% 87.4% 41.Fi Fo 7% gr an ure 1, analysis 401( of 401(k) k) Participa partici nts Rpan epresent t loan in activity o a Rang 2022 vs.e 2 ver of 02 Ages 1time, DOL see Hol ................................ Form 550 den, Ba 0 for all ss, and Copeland 20 401(k) p................................ lans 23b. .......................... 5 Introduction National C ww omp w.ici.org ensatio /pubf n Surv ile_pd ey daf/per ta and h 07-ist 01ori .pdf cal rel andati ww onships an w.ebri.org d trend /docs s/ eviden default t in the -source/e Form 5500 bri-issuedata -brief/ , IC 02 I estimat 01ib.pde f.s the Average • new contributions by the participant 14% 29 (+), the empl 26% oyer (+), or both; Recently hired participants were more likely to hold target date funds than those with more years on the job. At year- had N no l either oans EB outs RI tanding at nor EBRI1998 -E year RF lobb -end 2 ies or tak 022. es positions In$ addition, 6,717 o pn artic spe ip cants ific p oli with five cy p$ ropos 3, or fe 902als. wer EBRI years invites of tenure comm or with ent on thi mosre (see Inv year. balan In ad ced fund estme ditint Company on, the category. p lans Institute, with any Quarterly S given prov upplemen ider may tary D chang ata). e f All rom oc y aear to y tion to equiti ear, es which in target da changete s tfu he plans nds is as provi sumed to ded. 401 2007. For (k) Plan Asset Al exa 20smple, more than 90 $ 5pe ,78 rc 0ent loca of 4 $01(k) 13tion, Account Balances, and Loa ,424 plan parti $21c ,1 ip 5ants 8 in their twenties had more than 80 percent n of 20s 28.3% 63.7% 1.8% 2.4% 0.1% 2.0% 1.2% 0.3% 0.1% 89.4% 40s 39.3% 42.9% 2.3% 5.4% 0.4% 4.7% 3.9% 0.9% 0.2% 80.6% US Department of Labor, Bureau of Labor Statistics. 202 F4 ig.u N re atio A9 nal Compensation 26% Survey: Employee Benefits Survey. Brady, As a cro Peter, ss sec Kimberly tion, or sna Bur ps hhot, of am, and the Sara ent hire popu Holden. lation 2012. of The Su 401(k) cces plas n of partic the U ipants .S. Re , ttirement he database Syst includ em (Des 4 ecem 01(k ber)) . number of acti Investment O ve 4 ptio01(k) parti ns Offered ci bpan y Plts to an be about 66 million in 202 Plan 2s . The estimate o Partic f th ipae nu nts mber of active 4 As 01(k) pl sets an 27 Over the past four decades 1999 , 401(k) plans have bec 6,8om 15 e the most widespread private 4,400 -sector employer-sponsored • total investment return on account balances (±), which depends on the performance of financial markets and end 2022, 74 percent of pa20% rticipants with two or fewer years of tenure held target date funds, compared with 42 Th res is ma earch. y re 30s flect changes instituted b 12,633 y the Bipartisan 24,921 Act of 2 42 018, whi ,907 ch as $6 explai 8,003 ned by the Internal Revenue Service 30s 50sFi than Thu vag ry with inves ure 2, s, a 30gg y 34 5ears 401( 0 r .1 eg .8 % % a k) to te f of r age Part ten igu 5ure 3 3 r icip . Asset all 4 es in .8 .3 % w a %nts er this re e Rless oc epresent at port gen lion to ik2 ely to 2 .0 .6 % a Rang equ %erally shou uiti se es f th e of e or t 3 Job lo .75 arget da .an prov ld n % 6% Ten ot be ur 0 ision tha te fu .0 es u 2.% 7s % ................................ e nd ds wa to n other est s bas 2imate time .8 5.% 2 p ed on Mor %articipa trends. R nts 2 ningsta ................................ .4 3.. Onl % 3% r anal y ecord 8 0.1 p 4.% ercent ys 2% sis o were f ta of 0 e .0 rget date f 1 .parti % n 2 ............... cry % p cipan ted 8 64 un 8ts ..8 9 5 d % % their account balances invested in equities at year-end 2022 compared with less than half at year-end $2007. O 87,040 lder 37 Asset Allocation Distribution of 401(k) Participant Account Balance to Balanced Funds by Tenure Holden, Sarah PW laas n A hin s , and Jack sgton, ets DC: US De VanDerhe part i. ment of 2001b. “ Labor The Imp , Bu act reau of o Em f La plbor oyerStat -Selecte isticsd . Av Inves ailab tm leent at Options on 401(k) Plan Activity in 2022 GICs are insurance company pro Washington, DC: Investmducts tha ent Compa 1 t gua ny I ran nst tee itute. Avail a specificabl rate of retu e at www.i rn on the ci.org/pdf/ invested capital o ppr_12_succes ver s_r the life of the etirement. $85,50pdf 0 . partici participan pants is based on a ts who are youn co g and 2000 mbinatio thos n of da e who are ne ta from 6 US D ,w 856 to t eF partmen heir igurjo e bs, At o 8 as f L well abor,as Emplo old 3,8 er yee 24 pa Benefits S rticipants ecurity Administratio and those who havn e 2024 been Age Group 23% 40s retireme4 nt pla on 2.440s % the n al inlocat the 41. Unite i2 on of % d ass Stat ets 2es. 0 i ,9n 2 9. an 6 3 In 2 % individua 022,3 an est 7,95 l’ 56 s .1 account; a % imated 6 0 4 66 .,3 9 % n 0 millio 6 d n Am 1 41 .1 erica 4% ,961n work $ 3ers 1 .7 6% 4 ,8w 65 ere0 a .6 ctiv % e 401(k) 0.2% plan 75.1% 60s 29% 36.3% 32.0% 3.5% 10.1% 1.0% 12.2% 3.3% 1.3% 0.3% 57.0% 2020, among other things: percent of participants with more than 30 years of tenure (Figure A9) 1. 38% ass with acc et alloount catio n bal (see Mornings ances of lesstar than 2022 $10, an0 d n 00ot had e 16 f loans or addit outs iotanding nal discuss at year ion). -end 2022. before inclusio Percentn agin e the of pla d n ata assb eas ts e to conceal the identity of employers and employees but were cod $81,e 1d 40so that both could 401(k) participants were much less likely to have such high concentrations in equities at year-end 2022 compared with Equity, bond, money, and/or balanced funds Percentage of p4 a9 r,ti6 c7 ip 8ants, 2022 2,501,793 $166,153,244,580 Sixties Participa www.bls.nts gov ’ A /eb sss et All /pu 2001 bocat licatio ion ns/annu s: Prelimi al-nary be 6n ,6efi 4Fi 4ts ndi -sn ummar gs.” Wo y.htm rking pap . er pr 3,6ep 59ared for the Center for Pension and contract. Asset Allocation Distribution of 401(k) Participant Account Balance to Balanced Funds by Age with Fi angd US D ure 3, theirep curr Dom art 2 ment of L ent estic em Stoc ploy abor, k a ers n Bureau d for ma Bond Mark of La ny yea b et or Statisti rs In . T dhese exescs an ................................ 2024 nual . ICI estimates there updates of the................................ data were about 681,000 base $78,26 provide 7 snaps ................................ 401(k) pl hots of 40 an1s in (k) 2022 plan . . 6 50s Sug 4ges 4.050s % ted Cit3 at 3.5 io % n: Holden, Sar 30,52 7.5 7% ah, Ste5 ven Bass 1,09 77 .3%, and Craig Co 8 0 2 .,5 8 % 42 pelan 1 74 .1 1 d% ,, 91 “401( 4 k) P 3 2.la 3 94 % n ,8As 65set All 0.7% $ ocat 282,ion, Account 990 2.2% 6 6.1% All 37.9% 38.0% 3.0% 7.4% 0.7% 8.0% 3.6% 1.1% 0.2% 71.0% participants. At year-end 2022, 401(k) plan assets were $6.4 trillion, representing nearly one-fifth of all retirement • withdrawals (-), borrowing (-), and loan 31 repayments $76,2 ( 9+ 3). By Sarah Holden, ICI; S 1 teven Bass, ICI; and Craig Copeland, EBRI $75,358 be track1 ed 00 by researchers over multiple years. Data provided for each participant included date of birth, from which Of which: target date fund2002 s are an option 6,659 42,136 1 2,3 2,5 78 0,0 756 144,987,150,978 16 year-end 2007: 13 percent of 401(k) plan participants in their sixties had more than 80 percent of their account 1 BrightScope and Investment Company Institute. 2023. The Bright $7 Scop 3,357 e/ICI Defined Cont $73 ribu ,672 tion Plan Profile: A Close Retireme The Bi 60sF partisan iftie nt R s e Budget Act o search (CPRR 46,f 2 60 ) Cu 9 018 ma rrent P nd 5ated ch 9 e,nsi 616on Poli anges to t cy 8 Iss 7,84 he 4 ues Conf 7 01(k) hard 1 erenc 35,76ship distri e 8, at Miami 21 butio 2, Uni 690 n ru vers les. ity, On November 14 31 Ox 2,0for 92 d, OH, Ju, ne 60s At yea 3r 9-.end 6% 2022, 359 1.5% percent of non 3.– 7% target da Perce Pn e te balan tra c $ g e 9 7 e n .2 8 t,o a % 3 g f8 e A ced 3 c oc f o pfu u a 0n rnd assets were assu .t7 t ic % B ipa aln atn sc , e 2 I0 n2 1 v2 0 e.s 6 t% ed inmed to Balan 3c .0 e be inv % d Funested in ds0.8% equities ( 0.3% see 57.3% For 2023 3 , ICI estimates that 401(k) plans held more than $7 trillion in assets (see Inv 38% estment Company Institute 2024 4 ), in Perc acco entaunt balan ges are dollaces r-we, ass ightedet all averao gcation, an es. d loan activity across wide cross sections of participants. However, the cross- 38 Balances, and Loan Activity in 2022,” EBRI Issue Brief, 26% no. 606, and ICI Research Perspective, vol. 30, no. 3 (April as Owner sets. ship In an of I ongoin nvestm g collab ents i orative effort n Equitie , the s Is Comm Employeeonplace Benefit Res Am ear ong 40 ch Institut 1(ke (EBRI) ) Plan P ar anti d cipa the Ints nves tment $70,320 Other stable value funds include synthetic 23% GICs, which consist of a portfolio of fixed-income securities “wrapped” with a Equity, bond, money, and/2003 or balanced funds; 6,839 3,832 Fi an US De gure 4, age grou partmen Distr p iib s t of ass ution La igbor, Em of ned 401 ; da (pl te of k)oy Plan ee h B ire, Accou enef froits m wh nt Bal Security ic ah nces a ten Adm by Fure i Si gini uz rs ra e e trat ng 1 of 0 Accou ion. e is a 2s 01 nt Bal sig 2. ned Private a;nce outst ................................ Pand ension P ing loan lan B balance; ulletin,..................... Ab fun stra ds i ct of n the 8 2 balances invested in equities at year-end 2022 compared with 30 percent of 401(k) plan participants in their sixties at All 4Lo 1.1 ok N % o at te: T401(k he a3 v7 era .0 ) P g % e lans, accoun2 t 020 balan. 3 cSan e .1 a % moD ng ieg all o, 12 CA .3 m 7: Bri .il0 lio % n 4 gh 01tSco (k) 0 p.a 5p rt % ie a cipand nts w W aas s6 $.hi 7 90 % ng ,32t 0on, DC: ; the med 3i. In a 4 n% aves ccot ument Com nt 0 b.a 7 la % nce wapan s0 .2y Inst % itute 68. 6% 2018, the Internal Revenue Service released proposed regulations to implement these changes. Generally, these A ta Inv rgeestmen t date fu 8 80 n– t Co d9, typ 2001 mpan ic Fa o llryt ire e.y I s balnstitute, Q ances its portua folirterly S o to becou mpplementary e less focused D onata). growt T h a he a nd mllooc re atio focun to equiti sed on incom ees in target da as it approachete s a fu nd nds passva es ries w the targith the et date of the more than 710,000 plans, o $65,454n 28% behalf of about 70 million active participants and millions of former employees and retirees. s The chan ectional a ge nal inys an is is not well y indivi 5dual suited partic to a ipantdd ’s racco essing unt balan the que ce i stion of n the d the im atabase i pact of s inf part luenici ced by th pation in e 401( magn k) itu pde lans over of thes te ime. 2024). 2 Company Institute (ICI) coll 2004 ect annual dat $6 a on 3,929mi 6,9lli 46 ons of 401(k) plan participan 3,89ts 3 as a means to examine how these 1 guarantee (typically by an insurance company or a bank) to provide benefit payments according to the plan at book value. and GICs and/or other stable value funds 32,948 7,422,251 501,919,090,144 $15,331. Account balan4 c0 es 1 ( ak re) pL art o P ic a e ip n ra c n e A tn c atc t ac ig v oe u it n o y t f b V A ala c ac n rc o ie e u s d n h tA e B ld c a r in lo a 4 n s 0 c s 1e (k 4 I) n 0 p v1 la e( n sk s t e )a d tP th iln a e n B pa a rt P la ic a n ip r c a te i nc d tsi ’p F cu a un n rre d ts n st employers and are Years Pe fu n o rc d fpartici ,e T w n e th a n ic g u h er span e is a u re s t’s u da olllly Z a in r-w e inves rco le uid gtm e hd te ient d n > a 0 th v e e to port ra fu 1 g ne 0 ds ’folios; an s . n> a1 m 0e .to 2d 0 as> s2 et valu 0 to 30es att >30 ri tbu o 4 te 0d to >4 0 thos to 5 e0 fun >ds. An 50 to 6 acc 0 > ount balanc 60 to 70 >e 70f or each to 80 > p 80 art toici 90 pan> t 90 to 100 At year-end 2 2005 Form 022, 9 7 5500 perce Annu nt of al 4 R0e1( port k) s pla (V n ers paion 1.1) rticipant . sW has eld inv hington, DC: estments US in equitie Departm s ( ee nt of quity Labor, Em funds, company st ployee Bene ockfits , year-end 2007. Across all age groups, a lo< wer 100 share held 8622 no equiti 0.191es 532 at year 19.15-3en 19d 2022 compared with year-end 2007. Key Findings chan (Septemb ges relax : er). certain restrictions o Available at $ht 60 tps:// ,329 n ta wwking a hardsh w.ici.org/sys 7 tem/f ip distri iles/20 bution. Al 23-0though th 9/23-rpt-e provisi dcplan-p ons are e rofile-401 ffecti k.pve df. J anuary 1, funds’ target dates. For target date funds, investors were assumed to be in a fund whose target date was nearest to their Thirties Fi Cros three gure 5, s sections factor 401( s rk) change elative to Plan Acc in c the oo u 2005 mpos nt Bal 1starting ition fro ances I accom year to n ucreas nt balance. e with 6,8 yea 21 Pa r b Forticipant r ex ecause t ampl Age a he s e, a election cnd ontributio Tenure 3o ,6f da 6n 1 ................................ of ta p a g rov ive ide n dollar rs and sam amo..................... unt produ ple of plans ces a 9 3 net of plan loans. Retirement savings held in plans at previous employers or rolled over into IRAs are not included. The tenure 23 60 0A to g e 2 participants m 22.anage the 0% 2.6 ir %401(k)1 plan .1% accounts. 1.0% T 32his re 0p .6ort % is an updat 0.6% e of EBRI 0.7% and ICI’s on 0.5% going 0. 5 res % earch 0into .5% 401(k) 6 9.9% S ee Investme Of which: tarnt Company get date fund In s a stitute 202 re an option 4. 28,100 6,399,962 432,480,267,310 Not all participa (p ne tsr c ae re n to fo fe f re pld a n th ia ss is ne ve ts s)tment opL tio oa n n (s a ec et iF viig ty u re by A p 7). articipant age, tenure, or account size, 2022 A ta39 rget d$ a5 te5 t f,o u 5n t0 a d2 l typically rebalances its portfolio to become 1 0 le 0 s-s 5 0 fo0 cused on g6971 rowth an 0d .1 m 5o 4re 85 f6 ocu1 se 5d .4 o 8 n5 i6 n1 come as it approaches and passes the target date of the and Ho is the ld ten, he eq sum Sarah Security A of uity t, Jack Va p he partici ortdmi ion of nistr nDer pan bation at’ hei, lanced s ass Luis (Ma ets fu Alons rch). ind n s all )Av o, and Steve (fun Fi ai glab ds. ure 8). le at Plan Ne n Bas ba arly lances ar ss. 2 ix 013. in 10 e “401( con 401s(truct k k)) pl Plan ed an as par Ass th ticipants et All e sum o ocathad f ioal n, l p mo Acc articipant re than ount Ba 80 b lan ala ces nces , Some reco 2019, for calendar y rdkeepers supplyi ear p ng d laata ns, the propo were u 25% nable to sed regu provide co lations do no mplete asset a t require cha llocati nges f on detail or 2018 on certain poo –2019. Effective Janu led asset cl arass y 1es , 65th birthday va. ria Th blee equ is genity eralport ly y 2006 eaio rsn was e working a stimated using th t current emp7 lo,y 2e 9 r 2 ane i d tndu hus m stry averag ay overstate e equ years oity perce f p 4a ,0 rt88 ic9 ipatntag ion in e f theor t 401he assi (k) plan. gned target date Copyright Information: This report is copyrighted by the Employee Benefit Research Institute (EBRI). You may 1 to 10 11T tw o e 2n 5ties26 to 50 51 to 100 101 to 250 251 to F 5 ig 0u 0re A 50 11 to 1,001 to 23% 2,501 to 5,001 to >10,000 All Plans Groupusing a giv larger g Zro erwth r oen provider ate w >0 to hen 1 vary 0 add >1 and ed 0 to t o be 2 a 0 casuse mall >20 4 e t01 r account. o 3 (k 0) partici 6>30 On to pa 4 nts the 0 join oth >40er han tor o 5lea 0 d, ve p >5 2 inv 0 0la 2 test 2 ns. o E 6ment B 0 R In I/I a >6 Creturns Idd 0 titio o 70 n, of th >7 a e da g 0 tio ven perce tabas 80 e >8 cont 0ntag toain 90 e s onl >90 y to 100 >2 to4 5 Equity, bon 23 d.,5 m %oney, 3 a.n 6d % /or bala1 n.c 5e % d funds;1 .3% 0.8% 1.0% 0.9% 0.7% 0.8% 0.8% 65.1% fund, which is usually included in the fund’s name. plan participants’ activ 100 ity t plan h as rough sets year-end 502 102 -102 0.0 The rep 3481 ort i0 s. d 07ivi 73de 28d 7 into .732 thre 806 e sections 26% : the first presents a GICs are guaranteed investment contracts. Clark, Jef • 40 frey 1( W k) p . 20 la 2ns 3. d Ho ra ww in ma Americany youn Saves 202 g re 3. tValley ireme F nt s orge av , PA: T ers and he Va new nguhir ardes. Gr oup, Van At year-en gud 202 ard Ce 2nter , 40 f pe or rcent of 4 in Figth ure 6, e plan. Pl 40 Averan age size As i set A s est llo imated cation of as the 401 s (um of k) Plan act Acc ive oupartici nts by pan Partici ts inp the ant Ag plae n ................................ and, as such, does not n ......................... ecessarily 10 percent of and ww the So w.d Loa uirc r account ol. en : T gov/ Act abuliavity s tiites/dolg o b ns i a 2007 fn 20 la ronces invest m EB 12 ov R.” I/f /I C iICI Re lIes/ebsa Part eid in cip sa ear n/resea te -D qu ch ire 7iti ,cPers 4 te 9 es at rchers d 5 Rpe etire ctiv year /stat mee n- t en ist 1 Pl9 aic d 20 , n n s D/retireme o. 1 ata 2 C 22, . Youn ollea ctnd iont n4 ge Pro EBRI Iss -,b 16 r ull je 4 7cetins t01(k) ue Bri /p p rivat lan partici efe , n -po. ension 394 pan (D -ts pl a were ecemb n-bull m eti er) uch ns . - for one or mor 2020, fol e of their cl lowing issuan ients. The ce of f fina inal regulatio l EBRI/ICI 401(k) databa ns, certain chase includ nge 1,00 s wi 0 lles only plans be requ 2,50F 0ig ired. ure … 5A f,or w 0 Under th 6 00 hich at least 9 10 e propo ,000 sed regu 0 percen lati t o ons, f all plan 3 fu nd ca The Emplo lculated ye using e Benef the it RMorningstar esearch Institute ( Lifetime All EBRI) oc is a nonprofit, ation Indexes (see Mo nonpartisan rningsta , publi r 202 c po2licy ). Fo resea r the a rch organiza verage 401 tio (k) n th pla at n a does sset 20s copy, pr 19.7% int, or2 d .2ow % nload 0 this .8% report solely 0.8% EBR for p I/ICers I 0 .4 50 % ona 1(kl )an Pld a 0n no .6 % D ncom atabmer as 0e .cial 7 % use, p0rov .5% ided that 0. al 6% l hard co 0.pi 5% es retain 73.1% >5 to 10 and compa 2n 6y .1 s % tock 4.5% 2.0% 1.7% 1.2% 220 1.3% 1 9 .2 28 % ,157 1.0% 51 5.,1 3% 44,779,43 11 .2% 58.6% 5 $45,519 Not the produ all paacco rticcip e aunt b n la tsrger arealances h o d ffeollar re100 d th i isnc P el in la reas vd n e sA itn m ses ( s e the e ntts o -or 401 p -ti d onec .(k) reas plans at 1es) whe 001-500 partici 0n com pan 9054 poun 27% ts’ c de 0urrent .2 d 0 on 112 a larger 8employers 20.112 ass 85. e Re t bas tirement e. Ass savin et allo gs he cation also ld in plans at Equ s inap ties is nc hot of lude eq part uity fuicip nds,ant com acco pany sunt balanc tock, and the es a equityt year po P rte io rn c- e end 2 on f b ta ag lae n0 co2 efd 2 E f; t u lin gd he ib s.les 4 eco 01(n k)d looks at participants’ asset allocations, including 401(k) Plan Loans Are W 2008 idely Availabl 7,191 e, but a Small Shar 3,88 11% 9e Take Them 40 Retireme 1(k) plan p nt Re articipants search. Availa were i blen at the htt ir ps:// twe Nunties or t m inst beritutional.va of Pahirtie rticipa sn , and ng ts uar in P 23 d.com/c lan percent ontent/ were dam/ in th in eir st/ii fort g-ies. Forty-eight represe more like nt th abstr Av ly to ailab e t act have h ota le -2 at l 005. num w igww.i h pd be con fr. ci.or of 1centrat em g/pd ploy ions f/p ees er in equi 19 at the -12.p ti sponso es. df At andye 4 rww 0 ing ar 1(-w.e k en firm. ) P d 20 bri. laW n org/cont 2 it A 2hi s , s n mo ethe tre than sent/ A year re 4 01 C - 9 en o (0 perce n kd ) c-e 2 pl n 02 atn r2 a - nt of as tEB es dRI/I et 401 in -allocat CI d E(q k) u p ata ition ila ebase, s n partici -accoit i unt pan s - ts >1 30s 0 to 20 assets could be i 22.eff 9% ecti 31.ve Janu 2% dentified. 3.3% a6 ry 1 .1 %, 2019, 1.4% 3 a pl .2% an administrat 1.315% % 2.7% or has th 0.9% 1.8%e opti 1.0 on o 1 % .8% f including or exc 1.0 1% .6%Loan luding the 0 as .8 1 a % .3 P % erce nrequ ta 0g .1 9 e .% 4 irement o % f the R tha e 0m 1 .9 .a 6 % t the i% ning 64 57 .6 .2 % % 4 allo not l cati obby or t on to equ ake posi ities (thro tions on ugh legi equslati ity fu ve p nds, co roposals. mpan y stock, and the equity portion of balanced fun 2% ds) by participant age, see 9 any an Of wh 20 icd h $:3 al t9 al ,r8 g co 8 e5 tpyrig 100 dateP fht a ur n and ot td icsip a an re ts -her a -n op atpp ionlicab >50le not 00 ices c16888 ontai121 ned ther 0.375156 ein, a 37.5 nd 18 5 you 8 54 5,29 may c 7 ite or quote 48, small p 407,478,0 ort 02ions of GICs are guaranteed investment contrac 26% ts. previous influences empl invest oyers ment ret or roll ur ed ns and cha over into indi ngesvidual retir in Paas rtis cets ipa. F nement acco tso W r ex itham Oupl tsunts e, tan sto din (IRAs ck g s ()as ar measu e not includ red by th ed ie n W the ils an hire alys 5000 is. total NoteFi : F guure 7, nds inclu Targ de met Dat utual fune Fun ds, bands' k co 4 lle0 c1( tivek t)ru Mark sts, life e t Share insurance ................................ separate accounts, and any p ................................ ooled investment product pri................................ marily invested in the security. 10 2009 7,346 3,972 $37analys ,323 is of 401(k) participants’ use of target date, or lifecycle, funds; and the third focuses on participan 1 ts’ 401(k) loan 40s 26.0% 4.9% 2.2% 1.9% 1.3% 1.3% 1.2% 1.0% 1.2% 1.4% 57.6% >20 to 30 401(k) P1trans pe la 3n .5 rce C % 36 h format .nt of a 3r % act 401 erio isn/ t 9i( .ck) 0 has/ s % p byla 2023 Nn partici um 4b /pdf/has .8 e% r opan f Plats - ninsi h 3 P.a 8 argh % d five tictis p/h an or ow ts,2 - f2 .ew americ 6 0% 22 er year a-s2 aves s .4 of % te -re nure, port 2.- i 1 2023. % ncludpdf ing 40.1 1 nearly . (9 k% ) Pla none Ac2 c -.o qu 6u % n arter t Bal aw n3 c ho were .e 9% 30.7% possible to link individuals across plans across a 40 maj 1(k)ority plan of ave th rag e e ra ecor sset dkee allocape tion rs , . This percen ita mprov ge of to es t tal a he ss eid tsenti , seficatio lected y n o earf sactive 5 W in hile a their majo twen bal emplo anc ti ries had yee ty es of - first obt an 100 40 more d-1 P loan ( ak rt)ain a i pl c t -iactiv p han 80 perc an an plan l tspa ity -- rticip -in oan prio -2012 ant ent of s- are 5 r to 32 their re 5 in plans . ques acco ting a h unt balanc that allo ardsh w es i ip di loans, nves stributi rel ted in ative on (ly few eq Reg. uities, com Secti partici on 1 pan par .401( ted s mad k) with -1(d e u 1 )(3 s 3) e pe (io v)(E)). rfcent of this Figure Equi6. ty , bond, money, and/or balanced funds; indicated. For asset allocation by participant age at year-end 2021, see Figure A13. Equ40 ities inthe clude re eport quity fu pro ndsvided that , company sto you ck, a d ndo so the e verb quity po at rtiiom and w n of bal4 a0 nc 1ith pr e (k d )f u L no doper a sn . s citation. Any use beyond 2 t 02 he 1 F so co rm pe 55 of 00the foregoing 5 2010 6,846 3,619 11% Fu return rthe For additio rmo index re, )na de acco l detail, creas unt balan e see Fig d by 19 ces ure .0 are pA1 in the ercent net of during unp appen aid loan 2 dix 022 . , while bon balances. B ds (as ecause of measure all the d by se the factor ICE s B , it i ofA s not correc US Corporat t to e Index) The Investment Company Institute ( ActiveICI) 401 is t (k) P he lead lan Parting ass icipantsociation representing regulate 401(k) Plan Ad inve ssets stment funds, including 50s 29.2% 0 5.6% 3.0% 2.4% 1.6% 1.6% 1.4% 1.1% 1.3% 1.5% 51.3% >30 activ Nity. umb An er o a 3 fp 8 P .pe 2 la % n n dix des 9.5crib % 2 es the 5.1 EBRI % /ICI 4 4.0% 01(k) data 2.9 base. % 2.7% 2.2% 1.9% 1.9%Average 1 .A 7c % count 30.0% US Department of Labor, Employee Benefits Security Administration. 2023a. Private Pension Plan Bull (*eti ) n, Abstract of 100 Plans-- sum 45016 6% recent hires (two or fewer years of tenure). Sou40 partici Fi borrowi rce g1 c :ure 8, T o ( 2k) a m 0 bpan 0 p u plan p 7 lng priv a an tio Ex ts yn s s a po tfo ro nd articipants c s ilege m k ure r ;EB esulte an R to E ( d IFi / IC G gu I Iqu d Pa C ir n s irt e itie n t i t c a 9 heir ip n he s )a d . In n/Overa to -D re s rcreas iixties. clas recte lls d e , ifi d R 52 c eA ation of tire mo pe mrce eng nt Pl nt of 401(k 0 an. 4 D the ami t) a lli C Participa 4 o on ll0 ec 1( partici tiok n) Pro nts plans jpan e B ct etwee t accounts for which n 20 l 07 t oan ha and t we data 2022 re wmu e ................................ re av ltiple ailab acco le uin nts th ow e 202 ned b ... 2 11 y Note: Funds include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security indicated. Percentage of Eligible 401(k) Participants with 401(k) Loans by Plan Size, 2022 All 2011 7,027 15% 3,785 10% 17 requires EBRI 1’0 s0 p orior r Few ex erpress permis 101s tion. o 500 For permis5 s0 io 1ns, to 1 p ,0lease 00 contact 1,0 EBRI at 01 to 5,00 0 permissions@ >5,eb 000 ri.org. A 60s ll de presume See a creas P lso a 3r 1 e Dold 2018 an t. that t d by i0 c% ip2 a5 n15 .t9 he s% .4ch 5 p .8ang ercent % d J 4.e 4 oi % nt Commi in t (Figure he 3.1% aver 2T .1 o ttee on 3) % ta age . l Pla or 2n .5 Ta s med % 1.xatio 8%ian n 2a 1 019 .cco 6% T 1.o u 2 (pp. t% nt b al P 104-105 aa rlance t1 ic .7 i1 p % .a 2n f % tor ). Ho s the 1 lden, Schra .5 database 1% .2% Totass, and Ch l1 as A .1 0 s a % .s 9e % w tshole ism reflects 1.1 32023 .% 1% find an o the Ba 1 e l1 .a 4 .n x 2 % c pe % e ngoing rience 8.8%45 9 9 .0 .1 % % mutu See n al fu ot nds, e 16 fo exchan r additio ge-traded f nal detail o undsn ta (ETFs), rget date f closed un -end ds. funds, and unit investment trusts (UITs) in the United States, and Copeland, C 41 raig. 2100 011. P“T lanar s--get Date Fund Use in 401(k) Plans and the Persistence of Their Use, 2007–2 8009.” .1% EBRI Hold2en, 010 Sarah 2021 , Jack Va Form 5500 nDer Annu hei, ala R nd Steve eports (n Vers Bas ion 1.0) s. 2021. “Tar . Washin get gDate ton, DC: Fun US ds: Evide Departm n25 ce Poi ent of nts Labor, Em to Growin pl g oy Po ee puBla ene rityfits and other stable value 7 fu .8 n% ds 784 1,402,425 138,323,291,623 Source :S Tee Figure A1 abulations from EB in the a RI/ICI Pa ppen rticipdix ant. -D irected Retirement Plan Data Collection Project single individuals. This Les proce s Th 2012 an du $re 10 al ,00lo 0ws EBRI and 7,1 ICI to 5 >3 $40,0 b 00 e gi ton $ to cons 50,000 olidate accoun 3,858 Mot b re T ala hances n $100 for ,000 individuals across EBRI/ICI 401(k) database offered a plan loan provision to participants (Figure A10). At year-end 2022, 15 percent of Note: At year-end 2022, the median 401(k) plan participant age was 44 years old. All 100% 25.9% 4.4% 2.1% 1.8% Nu1 m .2 b% er of Plan 1P .2 a% rticipants 1.2% 0.9% 1.1% 1.2% 59.1% 1 to 10 32,151 165,424 $17,532,288,021 $105,984 downward trend in the percentage of 401(k) plan participants with outstanding loans in recent periods. UC of “ty ITSpi an cal d simi ” 401( lak r fu ) plan nds offere parti 1cipan d to its nv . estors in (See About Europe, Change Asia, and other juris s in Account Balances dictions. beICI al low.)so represents its members in their Figure 9, 2Abo 013 Fe ut the w 401(k) EBRI/ICI Database Participants Had Outstanding 401(k) Loans; Loans Tended to Be Small ................................ 2 .... 12 • Is Yo sue ung Brie er 401 f, no. 3 (k) plan 61 (Au 5.3 p gu %ar st) ti. Available at cipants ten d ww tow.eb be in ri.org ves/ted mo content/tar re in geequiti t-date-es fund tha -us ne o -in lder -401(k) 401 -(k) plan plans-and the- 18 33 Of wApp Security A hich:rop tarriate get dmi da Use b tenistr fundy 2013 ation s 401(k are ( aSe n) P op ptember lan tionPart)icip . Avail a 7nt ,42 abl s1 .” eICI at Resear 602 ch Perspe 26ctiv , 1 27 ,3 2e ,6 9 5 7 27 ,3 41 ,8 no. 7, and EBRI 124, Iss 248ue Brief ,676,980, no. 537 Age Grou So purce: Tabulations from EBRI/ICI PartP ice ip ra cn etn -D ta ire gc et eo df R A ec tic re om ue nn tt B Pla aln a n Dc ae ta I n Cv oe lle sctte io d n iPro n Tje ac rtget Date Funds The 401(k) plan sponsor selects the investment options available in the plan. Figure A7 in the Excel file presents the 40 data 1(Repo k) provid particip rt ers Av to p ants aila w rov bil ith iit de acce y: a mo Thi ss sre accurat to l repoans ort is h availa ea e d sloa timat blns outs e on e of tha ta e verage nd inte inrnet at g (Figur accoun w e 9). ww.e t balabri.org nces Hope w ever, r indiv not all idual. partic ipants have access 42 11 to 25 20,060 3.9% 333,908 30,253,208,625 90,603 401(k) Participants’ Asset Allocations Continue to Skew Toward Investment in Fo 20 r 401(k) asset f 16 igures, see Investment CompanS y I ize nstitute of Acco2024 unt B . alance 90% 3.1% capacity as Par inv ticipestmen ants t advisers to certain collective investment trusts (CITs) and retail separately managed accounts (SMAs). 28 20s 2014 7,780 6% 2.5% 4,239 24% pe part rsist icipants. ence-of- their On av -use erag -2e, 007 at year -2009--en 48d 71 2.02 2, 71 percent of 401(k) participants’ assets 2 were invested in equity ww (Septemb w.dol.gov/ er). s Av ites/dolg ailable at ov/f wiww.i les/ebsa ci.or/resea g/filesrchers /2021/ /stat per27 ist-ic 07 s/retireme .pdf. 2 .1%nt-bulletins/private-pension-plan-bulletins- In plan year 2021 (latest data available), less than 1 percent of the $8.0 trillion in 401 1.7(k) % plan assets were participant distributio 26n of to 50plans, participants, and as 11,7sets 60 by four combinatio 42ns of inv 0,891 estment offering 34,16s. The 7,435,2 first cat 981.5% egory is the ba 81,179se Percentage of Account Balance Invested in Target Date Funds Fi to 401(k gure 10, 2019) pl 4an 01(k) loans Loan —inAct the ivi 20 ty V 22 arie EBd RI/ICI Acros 4 s0 4 1( 01(k) k) data Plan b Fas P ige, 8 u artici re 4 8 perce pants ................................ nt of participants were ................................ in plans offering loans. ..... 13 Target Date Funds Continue to Be Popular Percentage of participants Figure 3 Equiti The EBRI es /ICI Participant-Directed Retirement Plan Data Collection Project gathers information about individual AlAbo l ut Changes in 2015Account Balances 7,982 83,630 124 ,2 ,3 55 49 ,626 861,740,405,778 Years ofICI’s Ten 30s umissi re on is to Zero stren >0 gthen to 10 the f >1ounda 0 to 20tion >2 of the a 0 to 30sset m >30 14% an to ageme 40 >4nt i 0 to nd 5ustry 0 > for the u 50 to 60 ltimate benef >60 to 70 > 18% it o 70 f th to 8e lo 0 ng >8- 0ter tom 90 >90 to 100 4380% 51s ecurities thro to 100 ugh equity funds 7,79, the 1 equity portion o 55f bala 0,852nced funds, and 41, com 300,2pan 87,0y 6 sto 9 ck. Younge7 r 4,975 Age Estimates of the number of 401(k) plans and active participants are based on a combination of data from the US loans. See T 2020abstr abl act e D -2 6 in US D 021.pdf.e partment of Labor, Employee Benefits Security Administration 2023a. group, Investm whic ent h consists o Options f plan s that offer neither company stock nor GICs or other stable value funds. Twenty percent of Exposure to Equities Increased Among 401(k) Participants Between 2007 and 2022 Factorin1 g 0i0n all 401(k) partic 1ipants with and without loan access in the database, only 13 percent had loans outstanding Domestic Stock and Bond Market Indexes 2016 7,907 4,279 18 0 to 2 40s 26.3% 0.8% 0.7% 0.8% 0.20% 5% 0.6% 0.7% 0.5% 12% 0.5% 0.5% 68.3% (*) = 40 lO es f1 sw ( th k) hia cn plan p h 0 : .t 5a p rg ee rcarticipant t ed na t te funds acco are unts. an opt As of ion December 31, 2 70 022 ,95, t 9 he EBRI/ICI d 10,80ata 8,4base 33 included 7 s5 tat 0,1 ist 23ical ,573,270 Dold, At year The invest individual i El-iza end nv me bees 2 tnt op 02 h to T 2 r. homas , tio 38 ns tha pe . 2 rce 0t a plan 18 nt of . “Qual 40 of 1(ified k fers ) pla can Plan n pa sCirticip gn han ifican ge ant s tly affec s W ’ acco ithin unt th t ho e Bip bw partici alances w artisan pan ere Buts dget i all nves ocat Act.” ted e ithe Jo n e urnal ir qu401(k ity of fun Pe ) ass ds, on nsion ets a ;Be verage, nef andit s 1 GroupICE BofA Figure 202A Z 1e 1, US roEBC RI/ICI orporat >0 t 4 o 0 e 11( 0Inde k) >1 Plan Databas x. 0 Atlanta: to 20 ICE >2e 0 ................................ t D o 3 ata 0 In >3 d0 ices, to 4 0 LLC. >4 0................................ to 50 >50 to 60 >60................................ to 70 >70 to 80 >80 ............. to 90 >9 15 0 to 100 1 <$10 Dep ,0 70 00 % artmen $10 partici ,0t o 00f tLa o pan >$ bor’s Emplo ts 20, a ,00s0 a togro >$ yee 3up 0 Benef ,0, 0had 0 toits Sec >$ nearly 40,0urity Administratio 0 0 9 0 per to>$50 cent of ,000 to th >$n a 6 eir 4 0,0 nd Bure 001 0 to (k >) $ au 7 pl 0an of La ,00 ass 0 tobor St >$ ets 8 i 0nves ,0 a0 tisti 0 tte o cs. >$ d S 9 in 0 ee disc e ,00 q0 uities, com touss >$io 10 n in n 0,0pare 00ot>$ e 2. d with 20 0,000 Percentage of 401(k) participants by age of participant, year-end 2007 and year-end 2022 participants in the 2022 EBRI/ICI 401(k) database were in these plans, which generally offer equity funds, bond funds, money Table of Contents Month-end level, Decembe34 r 2007 to December 2023 29 50s 2017 7,935 19% 4,293 8% >2 to 5 at year In -ord end er to 2 2802 .7 ana % 2. On lyze avera 1.t 2he % ge chan , over 0 ge .9 % in partici the pas1t 2 pa .1% 5 nt account years, 0amo .7% bal ng ances ov partici 0.9% pan er ti tsme, it is with loa 0.9% ins outs mpor 0.tant to h 7% tanding, ave a 0.a 8bout % consis 12 0 p tent .ercent 8% of 63.3% Inves N o Stee a e: tm Acc lso ent ou Fi nt o bgure a p la tions nce A12. s are are p g artrou icipape nt ad c i co nto unt e bailgh anct es broad held in cate 401(kgori ) planes. s at th e participants’ current employers and are net of plan loans. Retirement 2 inf 0 2 1 orm 2 01 to ation 250 about: 6,103 963,657 66,301,745,978 68,802 20s 23.2% 0.7% 0.6% 0.7% 0.5% 0.6% 0.7% 0.5% 0.5% 0.5% 71.6% target which idate s$ 2 25 in 0,, f 0 lin 0 no. 4 ( u0 e nd w sith are $3 Su 0 recent an inv ,mm 000 er) years est : $4 67 0 ment opt ,0 – (Figures 0 609. Available at $io 50 6 n ,0 a that 00 nd A6 h $ ave ww 6)0 . An ,w.g b 00e 0other en rooim.c ncreas $741 0,om 00 pe 0in /w rc gly p ent - $ of cont 80of ,fer 0 401 0 en 0 ed t/up i(n k) $ 40 9 lo 0 partici ads/ ,1( 00k 0)202 plans a pan $2/ 1ts 01 0’ a 1/ ,0nd increasi 0 cco Q 0uali tunt balanc o fied $200-,Plan ng 000 lyes wer - used e by US Department of Labor, Employee Benefits Security Adm 2 inistration. 2023b. Private Pension Plan Bulletin Historical 196 96 1999 80 2002 2007 2008 2010 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 57 percent of 401(k) plan assets among participants in their sixties. 480 Percentage of Account Balance Invested in Equities >5 to 10fu nds, and bal Th 60s is update e 32an .5xtends prev % ced funds as 1.8% io 2018 us f inves indings from 1tment opti .3% the p ons. 1.4% Another 8 roj ,16 ect for 2 1.61 12% 0 1996 %percent of p through 1.2% artici 2020 pan 1 . F .4 1,ts were in plans th or year % 486 -end 0.9% 2020 res at 7% 1ults, offer GICs a .1% see Hol 1.nd den, 1%ot Bass, her 56.6% 60% savings held in plans at previous employers or rolled over into IRAs are not included. EBRI/ICI analysis Introductio the rem 25 aini 1 ton n 5 ................................ g acc 00 ount balance rema ................................ 2ine ,59d 2 unpaid. DOL da................................ ta in 910 di ,6 cate 71 that loan am ................................ 6ount 2,513s, ten 773,8 d0 to 3 be a neg .......................... ligible 68,6 p 4ort 6 ion of 4 30s Figure sample 2A 72, .7% EB of part RI/ICI 1icip . 4 3% 0 ants 1(k). Com Database 1.0% paring aver Rep 1res .1% ag ents e acco a Wid 0u .8 nt % e bal Cros ances acro s Se 0.9% ction ss of d the i0 ff .9 er % 401 ent (ye k) ar Univ 0- .8 e% nd ers sna e ................................ pshots 0.9% can le0 ad .9% to . 16 63 .8% Internal Revenue Service. 177.7 0.1 1981 08473. “Notice 10.84727 of Proposed Rul Pe erMak centin agg, e oC f ertain PCas erceh n or D tage o eferr f ed Arrangements Under 40 invest 30 1(k)ed plan p i Changes n bal articipants anced -Withi fun nd (Fi -the s, gu l-argel Bi repartis 7). Targ y targe an-B e tudget t d date fun ate- funds Actds. 4 .pdfw .0 ere 1(k)avai part lab icilpan e in ts 8’ 5 invest percement nt of ithe n com 401 pan (k)y p sto lans in ck continue the yead r-at en d 460 Tables and Graphs 2019 1975–2021 (Version 1. 6,90) 50. Washington, DC: US Dep 3,3 artm 43 ent of Labor, Employee Benefits >10 to 20 This pattern i 38.3s driven % 3 in part .4% by 2restrict .3% ions p 2.1laced o % n loan amoun 1.5% ts. 1.6 % 1.4% 1.2% 1.3% of 1 y.ear 5%-end 202 42 5.4% Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project an stable va d Copeland lue f 28 u2022. Results f nds as an inves or earli tment opti er years on, in a are a dditi vaon to ilable i the b n earli ase er issues options. of ICI Research Alternatively, 8 Pe percent of pa rspective rticipants were in Median 501 to 1,000 1,459 1,021,154 65,687,542,684 64,327 40s • 32.Equity f 2% un 2ds c .2%onsist of 1.6 poole % d inv 1.6 est %ments p 1.rimar 1% ily inve 1.1s % ted in stoc 1.1% ks, includi 0.n 9% g equity mutual 1.1% funds, b 1.4% ank 55.7% 50% >80 percent >60 to 80 percent >40 to 60 percent >20 to 40 percent >0 to 20 percent Zero plan In ass v • false con e stm ets 12 60 en .3 .t clusio O millio pti1 o6 nns. 9 n 4 s . 9 O F 01 ff0 or e.( r1k e 0 exam ) d 3 7 pl b1 yan 1 Pp par la le, 1n 0.3 a ticipants, i 7dd 11i4ng a lanrge numb er o Pf la n ne sw plans wit Pa h rtsic maller ipants balances to th Percene da tagetabas of Ase woul sets d 19 20 440 Size of Account Balance Employee Plans.” Federal Register 46, no. 217 (November 10): 55544–55549. Available at >20 to 30 401(k Yea )r P s la ofns T4 e5 Draw n.u 3r % e* In Ma 6.2ny %2020 Younger 3.4% Retirement 2.8% 7Savers ,560 2 .and 0% New 1 Hi .9res % ................................ 1.4 8,% 020 1.7% ................................ 2.4% 3.7% ..... 4 2 8.8% 202 histo 2 •rically l datab Ow as onership o w e.levels. These Les f pl in sans v than estment off4 ered perce s tar in e nge t of 40 qu t date ities 1( funds to k )is wides assets 88 wprea er pe ercent inves d am of ted o the nig n p 40 com artic 1( pan k) p ipan y st la tsock n in pa at thrt e datab yea icipants r-en as d e. . 20 O 2 verall, At year 2, in l9 ine -7 e nd Security Administration (September). Available at Figure A3, Snapshot of Year-End 401(k) Plan Account Balances .............................................................................. 17 50s 1,0 30 61 .2 t% o 2,500 3.1% 1.9% 1,0591.8% 1.3% 1,6171 ,1 .4 0% 9 1.3% 109,221 6.,0 4% 96,911 1.2% 67 1,.5 44 % 4 49.4% plans th (www.icat offer i.org/resea compan rch/inv y s estors/ tock bu ebri t no stable -ici) and EBRI Issue Brief ( value products, while the remaining www.ebri.org/publications/resea 11 percent of pa rchrtic -publicati ipants were in plan ons/issue-briefs s tha ). t 31 48% 86.2 0.052619 5.261873 2022 EBRI/ICI 420 collective trusts, life insurance separate accounts, and other pooled investments. Th • e EBR 83I/ICI 401(k) ,630 employer data -sbas ponsor e eneviro d 4nmen 01(k)t pl is certi ans, fied to b holding e fully compliant with the ISO-27002 Information Security Audit tend to pull do2 wn 021t he Form av 5erag 500 e account balance. This could then be mistakenly described as an indication that >30 Em 40pl 0 % toy o 2 ee Ben 44% 58.efi 3% t Researc 6.7% h 2021 Institute. 201 3.5% 8. “ 2.His 9%tor 8,0y of 69 40 2.2 7% % 1(k) Plans: 2.1% An Updat 1.4 8,e.” % 517 Fast F 1acts .5% (Novem 19% 1.6% ber). Was 1.4 hin % gton, 18.1% www.govinfo.gov/content/pkg/FR-1981-11-10/pdf/FR-1981-11-10.pdf. 44% with 2022r , ecent 68pe pe rce ye rcent nt of ars. T of 401 401 his shar (k) (k) p pl e artic an has p ipfall artic ants en by ip ha ad nts 8 at i 1n percent leas the t E som BR siI/ICI 40 e nce 199 invest1( m 9, wh ent k) diatabas en n ecom quiti e hel pan es at year y s d ttoc arget date k accounte -end 202 fun 2d . ds an for 19 d tar pege rce t nt of date 60s 38.9% 3.3% 2.0% 1.8% 1.3% Figure A 15 .4% 1.3% 1.0% 1.2% 1.3% 46.4% (ww percw.d ent ol. of p gov/ artics ipites/dolg ants) ov/files/ebsa/researchers/statistics/retirement-bulletins/private-pension-plan-bulletin- 40 271.3 0.165609 16.56086 offered b 401(k) Partic oth company ipants’ Acc stoc ount k and stable va Balances Te lue nd to Rise products i wn a ith dP diti articipant on to the b Age ase and opti Tenure ons. .................................................. 6 400 Equity, bond, money, and/or balanced funds 59.4% 20.4% 19.3% 42% 12.6% 7 •42% Bond funds are pool 2022 ed accounts primarily 8,0invest 69 ed in bonds. 4,538 All stan >2 dard. More to 5 32.over, 0% 42% EBR 2.I ha 1% s obtai 1.ned 4% a legal opi 1.4%nion that the 1.15% 0% methodo 1.1% logy use 1d meets .1% the priva 0.9% cy sta 18% 1.nda 0%rds of the 1.1% Gramm- 56.9% Figure bal • A an 4, $c 0.9 es are Ag e trillio Com declini n positio 41% in as ng sets , n of bu . t i Select t woul ed d 401( tell uks) nothing a Plan Account Ba F bout igure consis 9lance tently Categori participati es ................................ ng workers. Similar..................... ly, the 18 For an 14 an DC: Employ alysis of the ch ee Ben anefi ges in a t Resea cco rch Institut unt balances of co e. nsistent participants in th 41% e EBRI/ICI 401(k) 15 database over the four- 2,501 to 5,000 343 1,198,429 40% 16.7% 89,087,103,216 74,337 All 30% 32.0% 2.1% 1.4% 1.4% 1.0% 1.1% 1.1% 0.9% 1.0% 1.1% 56.9% fun assets ds w . e re Altog 38et pe her, 9rc 33ent T .1 e equ no 0u .f 40 ity 5 r6 e se 9 15 C 1( 8o curities 9 km ) plan 5 p6 o .9 s5 — i ass t 8i8 e o 6 qu n ets o ity fu f. N Se ot al n le ds, the ct l part ed 4 equity icip 01(ants k) P portion lare o an Ac f o fere cf ob u d alance ntar t Bge ald fun a t date f nceds, Cund at e and g s— or comp am iesong partici any stock pan —ts who 380 historical-tables-and-graphs.pdf. 38% Note: At y e >5 a r-e O tfo n w d1 h 2 0i0 c2h 2:, t ta he rg a e vte d ra agte e a fu cn co du snt a br ae la a nc ne o ap m tio on ng all 12.3 million 401(k 21% ) part5 ic 0ip .4 ants was $70,320; th 1 e8 m .4edian account balan15% ce was1 $ 6 1.5 8,331. Account balances Note: Average and median 401(k) loan amounts are calculated among participants with 19 Lea ch • -BlilBalance ey Act. At no ti F d fun ew 4d 0sme ha 1 are poole (k) Ps an artiy cd nonpu i pa acco ntsunts invest bl H ic a personal informatio d Outsed ta n in both sto d F in igg u r4 e0 n th 2 1(ck k)at is personally identifiabl sL an oad bon ns; Lds. Th oans T ey e are nde cl de, such a a to ss B ifie ed S s a m into t aS lloc w ial Secu o rity Internal Many Factors 5,00 R 1 t19% ev o 1e 0nue Service. ,00 0 Affect 401(k 2020 ) P.articipa Retir 196 eme ntsnt Pl ’ Acco ans FAQs unt Balanc Reg es 1,3 ar ................................ 59 di ,8 n8g 2Har 35%dship Distr 94 ibu ,................................ 25t1 ions ,034. Availab ,138 le at .................... 69,308 6 yea Ana r perio agg lysis o reg d from yea ate f y ave ear-end rage acc r-end 2018 20 ount 16 EBR to I/ICI 401(k) bal yea anc r-end e woul 2020 plan pa d ten ), see Holde d rtic to ipan be pu t target da n, B lled d ass, and own if te fund inves Co a large peland n to 2023 um rs fbe .in ds the r of oly ten der partici d to hold o pants ne a retge ired - . • Mor 20 e 401(k) plan participants held equities at year-end 21 2022 than before the financial market 360 PercenP tae g re c e on f tp aa gre ti c o ip f a A n ctc s o w uit n ht a B ca clo au nn cte b Ia nlv ae ns cte e sd i n in s N pe oc ni- fiT ea dr g ra en t gD e 17% a st , e 2 0 B2 a2 lanced Funds 34% 30.1% 16% are pawere represe rticipan of t anted f cere coun d t71 bta arget date l ap nercent ces held of in fun 4 401( 01ds, (k) pk l77 a )n pl s p a an terce th par e pnt h art ticipants’ icip el ad ntst' hem at cu ass rrente ets m year at ployeyear -rs en ad 20 n- den ared 2 n 22022 e.t of Tar pl a( nFi ge logu at nsre date . R 6) eti fund re . m ent ass savin ets gs repres held in plaented ns at pre 4v4 ious 20% 401(k) loans at year-end. 15% 15% 15% 15% E >1 qu 0i tty o, 2 b 0ond, money, and/or balanced funds; 24% 10% Figure A5, Tenure Co 14% mposition of Selected 401(k) Plan Account Balance Categories................................................. 18 13% 401(k) P 13% articipan 13% ts Repre 13% sent a Range of Job Tenures The 2022 EBRI/ICI database covers 19 percent of the univers 35.1e %of active 401(k) plan participants, 12 percent of >10,000 116 Percentage of Account 3 B ,7 a1 la 2n ,6 c4 e9 Invested in Non 2- 5T 1a ,4 rg 1e 9t ,4 D 9a 01 t ,0 e 03 .8 B 5 % alanced Funds67,720 Federal nu mber, been t R seser ubcategor ve Eco ransfe ies: nomic rred to o targe Data r sh t dat ( ared FRE e fuD) wi nd th E . sSt. Louis and BRI. non : Fed –target date eral Reserv bale B anced ank of fund St. s. Louis. www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-hardship-distributions (updated March 27, e 3 m 4p 0loappropriate target da yers oIn r road lleddi ov tio er n, intoch IRang Aste fu are es nn oin d (see Ho t intche ludes dample . lden, Van of recor Derh dkee ei, an pe d B rs and ass 2021 chang ). Fo es in r an the anal set of ysis tra plcking targe ans for wht da ich t te fu hey nd keep use recor and the ds crisis (year-end 2007), and most had the majority of their ac22 counts invested in equities. For 2 8 US De >20partmen to 30 t of Labor, Employee Benefits Security Adm 24% inistration. 2024. Private Pension Plan: 6% Abstract of Form 5500 Definition of 401(k) Plan Account Balance ............................................................................................................ 7 perce andnt of GICs the an ass d/orets oth of er s pl ta an So bls u erc of ve a :feri lT ua eb ng s f uu lan tid on uc ss fh rom fu 4 3 EBR nd .7% s I/in ICI t Pa hei rticr i ipa nves n3 t-D 9.i4 re tm ctent ed R l eitneup iremens t .Pl6 a 0 n. D 6ata Collection 43.55 % 8.2 Because of these changes in the cross secti Percentage of aons, ctive co 40mparing a 1(k) plan pa vera rticip ge accou ants by ynt ba ears o lances a f tenure,cr 2oss di 022 fferent year-end cross- All 83,630 12,25 27% 4,626 861,740,405,778 70,320 Age 10% 0 Yea3 r2 s 0 of Tenu pl rans, e and Zer13 o 163pe 8.2 > rce 0 tnt of o 10 401 >10 ( k) to p 20 lan > as 20 s et tos 3 . T 0 he> p 3roj 0 to ect 40 is unique >40 to 5 beca 0 >5 use it inclu 0 to 60 >6 de 0 s to d 7ata 0 p >rov 70 tio de 8d 0 by a >80 wide to 90 >90 to 100 SourceY : e Ta ab rs ul a o tifo 4 n T 8s .e 5 n f% ro um re EBRI/ICI Participant-Directed Retirement Plan Data Collection Project o A target date fund pursues a long-term investment strategy using a mix of asset classes, or asset persistence of 2024 ; acc their use essed from 2 April 1 007 th , 202 rough 20 4).2% 09, see Copeland 2011. For an analysis of target date fund use among defaulted 32 Figure >3 can al 0 A6, s40 o i1 nflue (k) P nce lan Ass the ets change in ag 1 Are Concent grerated in E gate averag quiti e 16% es acco ................................ 23% unt balance. Thus, to ascert ................................ ain what 4% is ha..................... ppening to 19 example, more than Pro 9 jec0 perc t ent of participants in their twenties had more than 80 percent of their 401(k) plan Annual Reports. Washington, DC: US Department of Labor, Employee Benefits Security Administration. Younger 4 Account balan 01(k) ces are Plan net of Par un ticipa paid lo nts Te an balan nd to In ces. Thu vest s, un in Equit paid lo 3% anie bal s Mor ances are e Tha not i n O ncluded in a lder 401n (k) y of the eight a Plan sset Group Of Z w eh rio ch: targ1 >0 e0 t d 0 ta o ot e r1 F 0 fu en w d 5 e s 4 >1 r. 9a 0 % r e to a n 2 0 opt1 io 0 >2 n 1 0 to t o 5 030 0 >30 to 5 40 01 t3 o>4 3 1 .6 ,0 0 0 to 0 50 >50 1 ,t0 o 0 5 1 62 0 t.o 2 5,>6 000 0 to 70 >70 >5 to ,0 8 00 5 00.2>80 to 90 >90 to 100 sectional snapshots can lead to false conclusions. For example, newly formed plans would tend to pull down the average 300 > 30 years 0 to 2 Holden, Sarah 95., Steven 1% B 2.2 as %s, an 3% d0 Crai .6%g Cope 0lan .3%d. 20220 . .“4 1% 01(k) Plan 0.1% Asset All 0.ocat 1% ion, Account (*) Bala(nces, *) and Loa 58(.* 0)%n 1.5% 401(k) Plan Account Balances Vary Across Participants ......................................................................................... 7 0% variety of plan recordkeepers and therefore represents the activity of participants in 401(k) plans of varying Figure 7 >30 allocation, that the fund provider adjusts to become less focused on growth and mo 11% re focused on and non-defaulted 401(k) plan participants, see Mitchell and 18% Utkus 2012. 401(k) participants’ account balances, a set of consistent participants must be analyzed. Future research will accounts invested in equities at year-end 2022, up from 9% less than half of participants in their twenties at year- 20s 40 E 1q (k u)i9 t P y 5,.l a 9 b n % o C nd h,a m rao c1 n te .e 9 ry % is , ta ic ns d /b oy r P b 0la .a 4 ln a % n A cs es de f tu sn , 0 2 d.0 s 22 ;% 2 0.1% 4% 0.1% 0.1% (*) (*) (*) 1.4% 280 categori Particies des pants Availab c ribed. le at www.doP l.gov/ ercena tage g >2 enci 0 o ft o E es/Ebs l3 ig 0i by le e a a 4r0 / s N res 1u (k m )earchers b P ea r rto ic f iP pa lan /st nt sP atis Wi arttih ctics iO pa un /retire ts ts tandin ment g 401-(bu k) L llo etins ans /private-pension-plan. >2 to 5 93.8% 2.9% 0.8% 0.4% 0.1% 0.1% 0.1% (*) 0.1% (*) 1.6% account balance but would tell us nothing about consistentl 15%y participating workers. Similarly, the aggregate average account 1 to 10 11 to 25 26 to 9% 50 51 to 100 101 to 250 251 to 500 501 to 1,001 to 2,501 to 5,001 to >10,000 All Plans Figure SizeA o7, Act f ADistr civity coun ib itn ution B202 alan of 0 c.” e 40 ICI R 1(kesear ) Plans, ch P Pa ers rticipants, pective a 28nd As , no. s 11 ets , a bnd y Inv EBest RI ment O Iss 35 ue Bptio rief, n ns,o. 2 0 522 76 ................................ (November). Available.. at 20 Investment Company Institute. Quarterly S Targe up t plem Dateenta Fun ry ds Data. ' 401W (kas ) M hin argk ton, DC: et Shar In e vestment Company Institute. sizes—from very large corporations to small businesses—with a variety of investment options. See the appendix >20 to 30 12% income as the fund approac 9%hes and passes its target d4 at 0.e. 3% Average Account 30s a 40 nd 1(k 9 c4 o) .m 2 P % pla an n yAc sto count Ba 2 c.k 7% lance 11% 0.7 s% Tend to0 R .3ise % with P 0arti .1%cipant Age an 0.30.1% d Tenure 0.1% ................................ 7.6 0.1% 0.1%.......................... 6.411% (*) 8 1. 6% 260 examine linked data to analyze the consistent sample of participants in the EBRI/ICI data collection effort. >5 to 1020 end 2007. 92.2% 3.6% 1.1% 0.5% 0.2% 0 1.,2 0% 00 20 0 ,5 .t1 0 o% 0 2 year5 s,00 0.0 1% 10,000 0.1% 0 10% .1% 1.8% 78.5% 18.1% 9% balan Tace wo rget date uld tend funds a to be pu re often lled dow used as n if a the la def rge n ault i umbe nvestmen r of partici t in au pan tots retired. matic enrol lment plans and in p 9%lans’ investment lineups 33 <$10,000 8% 37% Plans Loa 8% n as a PercP en etra cg ee n to afg te h e o fR to et m ala 4 in 0in 1g (k 4 ) 0 m 1a (k rk ) e P t,la y ne A ar c-c eo nu d nt B 8% alance 8% 8% 8% Am ong ind ww ivi w.ici.org dual 401(k) /sys pla tem/fil n part es/2 icip 022 ants -11/p , the er2 al 8locatio -11.pdn f of and ac w count ww.eb brai.org lances to /content/4 equit01(k) ies (equ -plan ity f -as un set 7% ds, com -allocation pany- stock, The cross-sectional analysis f 1 or this pub 7% lication found that consolidating the multiple accounts across a 7% majority of th 7%e 7% 7% 40s for a P9 la 2n .dd 4 A % sitio setnal detail s 3.6% on the 1. EBRI/ 0%TotaICI l Pla 401 0n .5 s%(k) plan 0 d .2ata % Totbas al Pa e rt( 0 iFi c .2 igu p % an re ts A1). 0 .1% Total0 A .1 s% sets 0.1% Ba 0l.a 1 n % ce 1.7% 240 >10 to 20 6% 6% >10 to 20 9 o 0. 8%Non–tar 4.1% get date b 1.5% alanced fu 0.9nd %N su im nc be lude as r 0o .f4 P %ars tiet all cipan0 tocat s .3 i% n P ion lan fund 0.2s% 24% (also ca 0ll .1 ed % hybrid fun 0.1%ds) and 0.1 li% festyle 1 6% .5% US G O eneral f whic Ac h: ta countin rget date g fOf und fic s e. 1997 are an o.p “40 tion 5% 1(k) Pension Plans: Lo 0.1an Provisions Enhance 7.2 Participation but May 5.6 Affect 87.1% Fi gure A8, Asset Allocation Distribution of 401(k) Participant Account Balance to Balanced Funds by Age ................... 21 Percentage of plans 4% 4% 4% 4% $10,000 to $20,000 15% 4% 19% 31% (see Plan 401(k) Partic Spon ipa sor Co nts 91’ .0As un % s ciet All l of America ocations Conti 2023). At yea nue 3%tor Ske -end w T 2022 oward , 67 percen Investt o ment in Eq f target date mu uities ................................ tual fund assets were held in DC .............. 9 3% 23% Investment Company Institute. 2024. “The US Retirement Market, Fourth Quarter 2023” (March). Available at 50s 220 9 and $0 t tohe eq $ 9 2 1 5 .0 3,% 0 uity 00 port 3.ion 7% of balanced 1.5% f1u 9nd ,90s8 0 ). 8 var % ies widely 0.3% around 138, the 7 04 .3 6% average 0. of 2% 71 $1 pe ,90rcent 4 0 ,.1 1 6 % 8,6 for al 05 l pa 0.1rticipants % $10 3.,in 1 7% 2t 4he 1.7% providers to the single individual o account-balances 36 -and-loa wning the n-activity m resu -in-2020 lted i . n an overa 2ll 3 increase of .8% 3.4 percent in the average 401(k) plan >20 to 30 88.1% 4.8% 2.2% 1.4% 0.6% 25% 0.5% 0.3% 0.2% 0.1% 0.2% 1.7% 1% 1% 1% Ta Eqbulatio uity, bo ns o nd, f th moe Survey ney, and/ of or Co bala nsu nce mer Finan d funds; ces reveal that 56 percent of traditional IRA assets in 2022 resulted from >5 • to 1 1Ta 0 00rget date funds continue to be an often-used investment option among 401(k) plan (*) funds. 2021 Form 5500 >$20,0Incom 00 to $3 e 0S ,0ecuri 00 ty for Some.” Letter Report, GAO/HEH 88%20% S-98-5 (October). Washington, DC: US Ge 27% neral Accounting 401(k) Plan Account Balances Vary Across Participants 2007 2012 2017 2022 plans (see In vestment Company 16 Institute 2024). Clark 2023 reports that 58 percent of DC plans in their recordkeeping system 60s 200 >$2509 ,0 00 .3 0% to $625,0 30 .0 6% 2 1.7% 12,769 0.9% 0.4% 179,1 09 .3 0% 0.2% 5,3510 ,8 .1 7% 9,146 0.1% 29 0,.8 16 % 7 2.3% www.ici.org/research/stat 85% s/retirement. >30 77.0% 4.8% 2.4% 1.5% 0.8% 0.6% 0.4% 0.3% 0.3% 0.3% 11.7% Fi 20 acco g2 ure 2 un datab t balan A9, As asc s e e. This statistic et All (Figu ocat re 6). ion D P should be inte ist articipants’ ribution of al 401( rpreted wit locat kions to e ) Partici h cau pa quity f nt Account tion, as it may unds var Bal ied not represen ance by to age B,ala wtit nc the total h ed part Fu icip n ds 401(k) assets owned by ants by T in enure their fifti .............. es 22 c Young ompan er y s 40 to1( ckk) ; a P nd lan Part GICs aici nd pan /orts Tend to Invest in Equities More Than Older 401(k) Plan Participants ..................... 9 rollovers from employer-sponsored retirement plans. 60.4% 2,3 >>$ 2 t3 o0 ,5 000 to $40,000 21% 24% • part Compan icipants y stoc.k is equity i At year-end 2 n the plan 022, 85 ’s spon percent of sor ( 4 the 01( em k)plo pla yer). ns, coverin g 88 percent of 401(k) plan participants, Office. Available at www.gao.gov/assets/hehs-98-5.pdf. 23.0% Al1 l 80 >$6259 ,0 2E 0 .5 0 q% u to it y$ F 1,u 2n 5d 0 3 s ,.0 10 % 0 1.1% Com 12 p,a3n 9y8 0 S .6 to % ck² 0.2% B 2a 4la 5n ,2 0 c8 .e 2 8 d % Funds 0.1% 11,263 0 ,B .0 1 o 5 % n 5,d 7 2 F8 unds0.1% GIC 45 0 s,. 9 1 a 1 % n 8d Other 1 S.t9 a% ble Value Money Funds All in 2022 offer a 92utomati .5% c enrol 3.1% lment, up f 1.1% rom 56 0.6percent in % 02 .2021 % and 4 01 .2% 0.1% 17.2% 0.1% 0.1% 0.1% 1.9% Ho At year lden,- Sarah end 80 202 , Steven 2, the avera Bas 78% s,ge an ac d Crai count g b Coal pe ance land. was $ 2023 70 a. “What ,320 an D d oes the m Cons edian istent accou Parnt b ticipation alance i w n 401( as $15 k) ,Plans 331 (Fi Gg enerate? ure A3), 28.4% other 1 s9 ta .1b % le value funds 77% Figure0 A .912 11.4 16.1 having the individua 401(k) the Loan h B l. ig a T lhest ahe impact of nce avera s as a P ge er c acco allocation entaun get co of 4 nsolida and 01(k )partici Ptio lann v A pan caried wi cots un in t B the th th alanir c tw e pa es fenties ortic r Pipant’ art the icips ag a ln ow tse est w an ith . d t Y 40 oung enu 1(k)re wi L er o part an th th s bici ye P pan curren lan ts Si te zt emplo e,nd 20e 2d 2 tyer. o favor 40>$ 1(k) 40,000Plans to $50,00Draw 0 In Many Younger 21% Reti 21%rement Savers and New Hi 22% res 0 to 2 Funds 160 included target date funds in their inves 74% tment lineup. Target date funds were 38 percent of the assets in the (*) = less 10 t>$ ha1 n • ,0 2 .5 00 5 ,p Money f 0e 0 rc 0 etn ot $2und ,500,s0 c 00 onsist of those 12, f 60 un 3 ds designed to ma 3intain 93,190 a stable share2 p 2,ric 63e. 5,1 22,730 57,568 Target Date Funds Continue to Be Popular ........................................................................................................ 10 (*) = less than 0.05 percent 72% Fi g At yea ure A10 r-end , 401(k 2022 )$ P 1 , 3 percent 8 lans' Lo ,942 >1 1an 0 tof the pa oOf 20 feri yeng an arrtic s ipants in th d Participae da nt Us tae base by were missi Plan Size ................................ ng a birth date entry, w ................................ ere younger th $18,8 a2n 2 7 0, or . 23 Joint Committee on Taxation. 2006. Technical E$ xp 18la ,4nati 33 on of H.R. 4, the “Pension Protection Act of 2006” as Passed by $18,127 $17,961 but >$ bal 50anc ,0Changes 00 es v to $aried 60, i 0n 0 w 0 40 ide 1(ly. k) P For lan eAcc $ xam 17 L o ,6 o pl unt 8a 6 e, n $ m s Ba 1 7F ,ore than lances, 6 r3 o 0m 4020 1 thr (1 k6 )ee 21% – P20 -lqu a2 nart 0 s.” T ers I eCI Re n of de th ds earc e topart Bh e icip P S ers m aa pe nts llctiv in e th 29 e $1,2 7 n 022 ,5o. 8 19% 72 E, an BRI/ICI d EB 401 RI Is (k sue ) 1 Of which: target date funds a27% re an option 0.$ 716,732 $16,836 $1 17 0,.1 332 14.4 The largest increases in average account ba 70% lance occurred among older pa Inv rtic estipants wit ment Cath f ego ewer yea ry rs of tenure. For example, 1 140 bal anced funds, while olde1r9 partici .9% pants were more likely to invest in fixed-income securities $16,010 such as bond funds, GICs percent in 20 $15,246 15. 68%37 38 $15,331 The ana40 W ly >$ silshir is 1(k) 2 i,n 5 c0 le 500 u 0d ,0 e Plan 60 s 0 0 th 0. t eo 1 Account San $ 26 .67% 3, 2 m 5ta i0 lli,o Monica 0 n0 p 0a rtBa icipa lance : W nts iin 19% lshire ths Tend e1 y 2e , Ass a 9r-e 00nociates d to R 2022 EBR ise . I wit /ICI 40h Part 1(k) 8 d0 a1 ta,b 4 ici a 5s9 epan . t Age and T 50,87 enure 9,670,3 06 ICE BofA US 631 ,5 4.8 24 % 401(k) participants represent a wide ra 18% nge of age and tenure groups. At year-end 2022, many 401(k) plan participants The analysis in • c ludeStable EBRI/ICI s the 12. valu 3 m 401 illio e p n p (a k) roducts rticd ipatabas ants, such in th e, e a y eas nd ar-e g n 68 uara d 20 pe 22ntee rcent EBRd I/I i C of nves I 40 4101(k) (ktm ) da ent ta p ba c art se ontrac .icipants ts (GICs in the databas ) and ote her he stable ld target value f date fu unds, nds. Also are $12,655 17.6% were older than $12,5 69. Th 78 ey were not included in this analysis. $11, 600>$60,0the 00 to Ho $7use 0,00 on July 2 0 8, 2006, Pe an rced n as Consi tage of eligde ible re pd by th a21% rticipan e Senate ts by parti on cipaA ntugus age, t 3 202 , 22006. JCX-38 17% -06 (August 3). 18% 18% 18% database Ownershi Brief hap d acc , n of Target o. ount 582 bal ( D March at an e F ces )und . Avail that wer s Varies ablee lower at www ith Partic w.i than ci.org/sy $ ip7 ant 0,320 Age stem/ , th and Te fil e es/ size 2023 nu ofre the - ................................ 03/ avera per29 ge -02 ac .pdf count and b al ............................. ance. In fact, 42 11 120 Corporate Index³ among pa >$6,250,0rtic 00 tipants in th o $12,500,00 eir six 0 ties with tw 5,83o 2 or fewer years of tenu 789,re, the a 463 verage account 50 9,.9 7% 31 balan ,445,3ce increa 11 sed 9.7 6 percen 4,514 t with 2 2 and other stable value funds, or money funds. For example, among participants in their twenties, the average allocation Figure A11 7.0, % 401(k) Loan Balances ......................................................................................................................... 24 33% AA t a ta rg rg ee t td were d aa te te f u fn u youn d n d ty tp yip cige a cla ly llr: y re re b40 a bla a ln ap c nercent e cs e sit s it sp o p of rt ort fof p lo io li o artic to t o b e bc eip o cm oants m e e le ls e s swere s fo fc ou cs u i e sn d e d the o n o n g ro gir ro w t w th wen t h a n ad n ti d m es or th m ore ore fo fc ou cs ue ir sd eties, d o n o n in w ic no cm o hm e ile e a s a23 s it ia t p a pe p pro prce ro ac ah cnt of e hs e s a n ad n p d p a a psr as ticipants se 1 ss 1 e .s 10 t2 h % te h e ta trg arg ewer te d t a dta e in th et e o fo tfh te h e feir u fn ud n,d w , hich 21 known as lifecycle funds, these funds are designed to offer a diversified portfolio that automatically rebalances reported as one category. 31% A >$ ll 70,000 to $80,000 21%100.0 1A 0g 0.e 0 Group 16% 100.0 Age See Figures 7 and account balanc and A7. e are positively correlated among participants cov 33ered .7% by the 2022 database. Smaller 401(k) 100 W 40ashington, DC: US Joint Committee on Taxation. Available at www.jct.gov/publications/2006/jcx-38-06/. 11>$12,5 16% 00,000 to $25,000,000 3,227 878,085 16% 56,278,153,453 64,092 percent of ww pw.eb articipants ri.org/content/ had acco what unt balanc -does-es of consist less ent than -part $ icip 10,0 atio 00 n- , in whil -401(k) e 56% 17 -pe pla rce nsnt o -generate f particip -chang antses had -in- a 4cco 01(unt k)-pl an- isw u hsic uh a lils y the consol iu ns cu lu ad lle yd in in c lu th d idati e e d fu in nd on o t’h se n fa u f th m nd e’.seir multi name. ple accounts. Among participants in their fifties or sixties with more than 30 years of tenure, the At yea3r.- 8end % 2022, 20 10 22 percen EBRI/IC t o I f the participants in th 9.1% e database were missing a date of hire entry and were not included in to equity and balanced funds was 94 percent of assets, compared with 72 percent of assets among participants in their Ownership of Investments 1 in Equities Is Commonplace Among 401(k) Plan Participants ........................................ 11 >$80,000 to $90,000 21% 14% 40forties 1(k) Lo a(n Fi a gu s r ae P 1). erceAnoth ntage er of 2 R3 em pa ercent ining 4 of 01( 401( k) k) plan participants were in their fifties, and 14 15% percent were i15% n their 80 • Other is t to be more he f re ocus sided ual for ot 7. o 9% n inco he me over t r investm ime. ents , such as real estate funds. 7.1% Of which: target date funds are an option 84.8 88.2 87.0 pl (*) an = l account ess th 2a .4 n% 0. 5bal perc anc entes tend to be held by younger participants, l 6ar .3% ger account balances by older participants (Figure Fi>$ gure 25,0A 00 12 (p ,0 e, 0 r c 0 Lo e tn oans from t $ o6 f 2 p,l5 a0 n0 s,)00 401( 0 k) Plans T 2,2en 22ded to Be Small ................................ 1,324,100 ................................ 84,971,339,944 ....................... 64,173 24 5.3% Note: Fu22 nds include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security indicated. bal ances gr acco eat unt er tha -balan n 14% $ ces 100, -2016 000- (Fi 2020 gu.re 4). The variatio 14% n in account balances partly reflects the effects of participant Note: Funav ds erage include acco mutuau l fnt ba unds, lance incr bank collectieas ve tru ed sts3.1 , life percent with the consol insurance separate accounts,idati and on o any po f t ole heir multipl d investment e accounts. product primari ly invested in the security indicated. The tenure this an Endn S>$ ee Figures 6 9alysis. 0ot ,000 es t o $1an 00,d A7. 000 21% 13% s ixties. 1 2 19.4% Ac1 count Bal20 ance 20s 30s 40s 50s 39 60s All 60 4.7% sixties. The median age of the partici Wilspan hire t5s0 i 0n 0 the 2022 10database .6% is 44 years, similar to prior years. Because older M >$ inA 6 o 2 r ta ,in 5 rg v 0 e e0 s t ,td 0 m a 0 te e 0 n fttu o o n p $ dt i1 o ty 2 n p5 sic ,a 0 are 0 lly 0 n re ,o 0tb 0 s a 0 h l3 ao .n 9 w c % n e;s t h its e re po fo rt 13% 850 re fo,l ic oo tm o p bo en ce on m ts e d le os n so fto a cd ud s e to d 1 1 , o1 0 n2 0 g 0 p ro ,e 3 w rc 5t7 e hn a t45% .n Pe d m rcoe re nt a fo gc eu ss a ere 7 d 3 o d ,n 6 o 8 liln a 2 c r-w ,o 0 m 3 e2 e ig ,a h 8s t1 e 5 id t a ap vp ero raa gc eh se . s and p 6 a5 s,s 7e 6 s7 the Joint Comm • Unkitt nown, whi ee on Taxatio ch is th n. e final 2019. Ge category neral Ex , co planatio nsists of n of ass Ce ets rtai tn T hat coul ax Led not gislation be id Enact entified. ed in the 11 3.5th Co 8% ngress. JCS- Younger 401(k) Plan Participants Have Increased Concentratio 5.0ns in % Equities Since the Financial Crisis ................... 12 Source: A4) Tabu. laThe positi tions from EBR ve correlat I/ICI Participion betw ant-Directeeen d Ret age iremenand t Pla a n D cco ata unt Coll balance ection Proje i cs t expected because younger workers are likely to have variable is generally years working at current employer and thus may overstate years of participation in the 401(k) plan. 1996 1999 2002 2007 2008 2010 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 >$100,000 to $200,000 20% 6.6% 10% Zeage, ro (not enur loan)e, salary, contribution behavior, rollov 3.4%ers 94% from other 86% plans, 12% asset all 80% ocation, w81% ithdrawals, loan ac 88% tivity, and 85% 40 2 2.5% target date of the fund, which is usually included in the fund’s name. 34 • 401(k) plan loans are widely a vailable, but a small share take them. At year-end 2022, 84 percent of 23 Fi 12 N >$ g oure t1 a 2 ll5 p ,A a 0rt 0 13 i0 c, ip , 0 a 0 Av n 0 ts terage o a re $2 o5 ff0 e Ass ,re 00 d 0 th et Al ,0 is0 i0 nvlocatio estment n op 478 o tiof n4 (s 0e1( e F ki) g P urelan A7).Acc ounts by 1,212,0 P 58articipant Age8 , 2 3,0 15 26 1 , 7 ................................ 42,406 38% 68,............ 608 25 5.9% partici This system o pan 19ts .2% tend f classificati to have lar on do ger a es n ccoot unt co balances nsider the , ass numbe ets ir of disti n the datab nct inve ase stment opti are more heavily co ons presented to a given ncentrated amon partici g th pe ant Source: Tab u Th Fi latgure ioe posi ns fro A8 als m tive co EBRo highl I/IC rrelati I Partights tha icon betw ipant-Dire t Individua een cted tenu Retirere ml 4 en an t01(k) parti Pl da acco n Dataun Co t balan ci lle pan ction ts’ a Pro ce is expect sset a ject lloced beca ation to balanced f use long-term emplo unds varieyee d wi s ha dely aroun ve had mor d ane 2-19 (October 31). Was 0hi .7% ngton, DC: US Joint Commit 5.5% tee on Taxation. Available at 17.7% lower 2 incomes 0 and to have had less time to accumulate a balance with their current employer. In addition, they are less Ho ld >$ en, 200 Sarah ,000 , Steven 3.9% Bass, and Craig Copeland. 2023b. “ 15% How 401(k) Plan 3.0% Participants Use Loans 3.4% 4% over Time: An 20 >0 to 10 percent 0.4% 1% 4% 7% 8% 6% 5% 3 Young employer 401(k GIC)ser P are la partic cont n guLo araribu ans Are Wi ip nte ants ed tion in had ve rates. stm co e de nt lnsis c T y Availabl on his tra tently hi c p tsa . pe e, r e gher allocat but xamines th a Small ions e Shar relto target ations e Take Them hip b dat ete fund w ................................ een sacco . A tar unt ge balances t date, or ................................ and p lifecyc 1 articipants’ 3.le, 2%fund pur agse ues a .... an d 12 1 12.2% 2.5% G >$ IC2 s5 a 0re ,0 0 gu 0a ,0 ra 0n 0 teed investment contracts. 3443 .7% 5,172,690 420,686,795,334 81,328 10% 10.9% 10.8% For data 40 on 401(k) pl 1(k) plan participants an assets, partici were i pan n plans al ts, and plans lowin through g 1. l 3% oans, b 2021 ut only , see 12 US De 5 .2 pe % rcpartmen ent of 401 t of La (k) bor, partici Emplo pants yee w Benef ho were its 20% but ra Di older str 4 ther th ibuti 01(kon of P )e t participant ypes 10 of o 0lan or F s, P ptio g ew ro e ns p ar u r ps. At year ti resen cipated. Pre nts, 101 -en and Asset to d 5 li0 minary 2 00221 , . resea 2 64 %s pe by P 5rrcent o 0 ch an 1 to la 1n Size aly ,0 f 04 zing 001(k 1.)4 mil plan 1,li 0 ass on participa 01 to ets 5, 0were 00 nts dra held by wn fr >partici 5,om t 000 pan he 2 1.5%ts 000 in their av time to erage *The accumu t of enure 41 vapercent a rilate an able2 i.s 8 % ge acco nt yea erally u nt ba y re -end ars 45% w lance. H o 2022 rking a(F t c ow igure A6). urre eve nt er, a ro mplo Fo yell r ov r ex and er f tample, hurom s ma a pre y o 26 vers percent of pa tvi atous emplo e years of payer’ rt rtic icipipants h s plan could i ation in the eld no bal 401(knterf ) planan .ere wit ced funds, w h this pohile sitive 60 0 www.jct.gov/publications/2019/jcs-2-19/. 23% 6.3% >10 to 20 percent 1% 3% 4% 4% 2% 3% 1 likely to have Analys 0 rollov .4is of % ers Loan from Act a p ivity rev 0. o 6% f Co ious em nsistent 40 ployer’s 1( pl ka ) P n lian Par n their ticur cipan rent ts p , 20 4la .2n % 16 acco –20unts. 20.” ICI Account Research balaPers nce a pnd tenur ective 29, e are no. 3.4% 1.5% 1.9% 2.9% >2 to 5 years long NotN eo :- tF e tu erm i : n Fd us n A d ins lnve c l liu nd ce ls u tm d m eu m tent uu atl u fu as n l trat d fu sn , d beg sa,n b k y, using a c no kl lc eo cltlie 8 vc e 3 a t ,itv 6 ru e 3mi s 0 ttru sx ,s l of tis fe , li ass in fe s u in ra set n uc ra cl en s cas e ep s s ae ra es that 1 pta 2 era , a 2tc 5 ec 4 a o,c u 6follow c n 2o t6 su,n a ts n,d a a p a nn d y a re pn oy o de lp eo d to 8 ermin iln e 6v d 1 e ,is n 7tv 4 m eed 0 s e,tn 4 m t r 0 p e 5 eallocatio ro n ,t7 d p 7 uro 8 ctd p uri cm t p an ri rim , typicall lya in riv ly e s intv e7 e ds 0 y itn ,e 3 d t2 h 0 ie n s th ee c urity indicated. Accountenure. t balances are participant account balances held in 401(k) plans at the participants’ c26% urrent employers and are net of plan loans. 25% Retirement savings held in plans at Number of Plan Participants 8% 8% Security Admin eligiblistrati e for l on oa2023a ns had loans o and 2023uts b. F tanding a or total retireme gainst their nt assets (incl 401(k) puding th lan accoose i untsn 4 . Loans 01(k) pl out an standin s) throg ugh amo the unted to fourth 10 401(k Sou)rc P ela : Tn abLo ulatan ionsAct from ivity EBR Var I/ICI ies wi Participt ah nt-D Pa ire rtici ctedpan Retit A remge ent, Pl T ae nn Dure, ata Co an llec d tioAc n Pro count Ba ject lance ................................................. 13 EBRI/ICI 401(k) database suggests that the sheer number of investment options presented does not influence participants. >2percent of pa co fif 0 ttie rrelati o 3s0 or pon bec erscixti entrtic eau s, w ipants h se a hile rol 1eld m lo 3 ver percent o ore than could give a f 480 pe 01(k sh )rcent of their accounts in ba ort plan -tenu ass 1% red employee a h ets were he 2% ld by igh a partici lanced f ccoun pan 2% un t balan ts ds at t in the ce. he e T ir tw here 2% nd of enties is so 202 or me discernibl 2 (F thirt 1% igure A8). ies. e ev At yea idence 2% r- 24% security2 in 0d 0ic 7ated. 2022 2007 2022 2007 2022 2007 2022 2007 2022 2007 2022 previous also e N m op te l p o : y Tos e h rs eitively m or ero dila le n d cor a o cv ce o rel r uin nate tt o b a IR ld a A nsam c e a re aong partici t n yo eta ir-e ncln ud d e 2d 0.2 pan 2 wats s $ i1n 5,3 th 31 e . 2022 database. A participant’s tenure with an employer serv 17 es as a The 202 Source: Ta2 7 b uEBR lan atiod nI/ICI 40 sEB froRI m EBR Is1( sIue /Ik C)I Bri Pa databas rtef ici, pano. nt -D e i59 co rec0 ntai te (Sept d Rns inf etireemb me orm nt er) Plat an . Avai ion Dat on a C lab ol83 lelc e a t,6 ion30 t w Pro 4 ww.i je0 c1( t k ci.or ) plans g/files/2 with 023/ $0.9 pe trr29 illion -07 in ass .pdf. ets and 12.3 rebal ancing to shift its focus from growth to income as the fund approaches and passes its target date. At year-end 2 >3 qua 0 to rter of 202 80 percent 3, see Investment Company Institute 2% 2024. For a disc 5%ussion of trends b 5% etween def 4% ined benefit ( 2% DB) and 4% percent of the remaining account balance, on average, at year-end 2022, in line with 16% recent history. Mitchell, On average Ol, pa ivia S., rticipants h and Step ave hen 10.4 disti Utkus. nct op 2012. tio “ns b Targe ut, o t Dat n ae vera Fund ge, cho s in 4ose o 01(k) nly 2.5 (H Retireme olnt Pl den a ans. nd ” NBE VanDer R Work hei 2001 ing Pa b). In per, no. of ro end So2022 llover a urce: , Ta 74 bssets a ula ptercent of 401 ions mong the p from EBRI/IC (k) I artici Pa partici rticipan panpan tts wi -Dire ts held ba cth a ted Rcco etire un m lanced f e t balan nt Planu ces grea Dnds ata C through target date fu ollec ter tha tion Pron $ je11 ct100,000, as nds 4 percen and nont o –tar f th geem ha t date ba d two lance or fewer d The samSo pleu o rc f e p:a T rta icb ip ua la n tito 2 sn 0 c ss h fa ro nm ge s EBR oveI/r IC tim I Pa e. rtic40 3 ip0 as nt-Directed Retiremen 4t0 Pl san Data Collection Pro 50js ect 60s All >5 to 10 years 9% Loans from 401(k) Plans Tend to Be Small ......................................................................................................... 13 million partici proxy for the p leng ants th (Figure of time A1 a w ). ork As er i h n as the partici 401(k pated in ) univers the e at 40 lar 1(ge k), mos plan.t of Small the plans er 401(k in the ) plan dat acco abas unt balanc e are small: es t 6end 2 2022, 38 percent of 401(k) assets in the database were invested in target date funds (Figure 6). Among participants in >80 percent (*) 1% 1% 1% (*) 1% 10% define Participa d co nts ntributio in 401( n (DC) pl k) plans an represe s, see Poterba, Ven nt a wide rati, nge of and Wi jos b e 200 tenure 7; Ho exlden, B periences, a rady, and Hadley 2 nd many were 006; Br new ady to t and B heir jobs. ogdan 201 In 0 22% Source: additi Tabulaon, tions the p 17 fro9 m11 ( EBR reliMarc minary I/ICI Pa hrt ) an i. Cam cipaal nty -D sis found th bridge, irected R e MA: Natio tireat me401(k) partic nt Planal Bureau n Data Colip lecan t of iots are n Eco Projecnomic R not n t aive esear —that is, w ch. Availa henbl given e at n options, they do not fu yea nds, rs of tenu up from re, and 67 percent in 9 percent 2020 of them h . Sixty-ad b eight percent etween two of 4 an A 01(k) parti g d five e Gro yea up ci rs of pants held targe tenure (see Fi t gure date f 8% A5). unds, 8 percent held non– Holden, So Sarah urces: , Pe Tabuter latio B nsra frody, m EBR and I/IC M I Pa ichae rticipa l nH t-D adl ireey. cted 2006. Retirem “401(k) ent Plan D P atala Cns: ollecA 2 tion 5 Pro -Yea ject r R and et US ros Depe part ctiv men e.” t of 12 L In abves or tment Company Loans from 401(k) Plans Tend to Be Small 4% to be held by more recent hires, and larger balances by longer-tenured participants (Figure A5). percent of the plans have 25 or fewer participants, and 23 percent have 26 to 100 participants. In contrast, less than 1 (*)= less than 0.5 percent App their e •nd t wen ix: The aver tEB ies, RI/ICI 66 p age ercent 40 1(k 40 )1( of D the k) p atabas irla 401 n e account ba ................................ (k) assets wla ere inv nce ten est................................ ed ds in tar to increa get dse atewi funds th p ................................ at ar year ticipant -end 2 age an 022; amon d .................... ten g ure. For 14 and 2016; and Brady, Burham, and Holden 2012. 2022, 48 percent of the participants in the database had five or fewer years of tenure, including nearly one-quarter divide their assets among all n. Indeed, less than 1 percent of participants followed a 1/n asset allocation strategy. target daww te bal w.nber. anced funds, a org/pape 12% nd rs/1 w1 percent hel 7911 12% . d both. 12% 12% 12% 12% 1 11% 11% 11% 11% Institute Research Perspective 12, no. 2 (November). Available at www.ici.org/pdf/per12-02.pdf. 13 Less Than $10,000 >$40,000 to $50,000 More Than $100,000 10% AllSo ind ue rc xe es : T aa re b u sla etti o to n s 1 0 fro 0 m in D EB ec R eIm /IC bIe Pa r 2rt 0i0 c7 ip . ant-Directed Retirement Plan Data Collection Project percent of the plans have more than 2,500 particip Mants edian . However, tenure: 6 y p ea arrs ticipants and assets are concentrated in large Because 401(k) plans were introduced about 40 years ago, older and longer-tenured employees may not hav 8%e participated Among participants with outstanding 401(k) loans at year-end 2022, the average unpaid balance was $8,069 and the partici pants in their sixties, 32 percent of their 401(k) assets were invested in target date funds. example, at year-end 2022, participants in their forties with more than two to five years of tenure had an 1 with two or fewer years of tenure (Figure 2). Another 13 percent of 401(k) plan participants had more than 20 years of BrightScope and Investment Company Institute 2023 reports an average of 28 investment options in 2020 and an average of 2 Sources Particip and ants inT clypes of ude the 12 D .3ata milli ................................ on 401(k) plan participants in ................................ the year-end 2022 EBRI/ICI 4................................ 01(k) database and the 21.8 m ............................... illion 401(k) plan 14 2 Examining the interaction of both age and tenure with account balances reveals that, for a given age group, average 24 Before 2005, DOL private pension plan bulletins reported a count of active 401(k) plan participants that had been adjusted The Wilshire 5000 index Pl is a n as c O om ffe pri re nh ge T na srg ive e tm D ea ats eure o Pa f trt he ic iU pS ansttso c O kf fm ere ark d e T t,a d rg ee stignePa d trt o ire cip fla en ctt s t hH eo pld eirf no grm Ta arg nce et of alT l U arg S e etq D uia tyt e s e Fc uu nri dti e As s s th ea ts t have readily available in 401(k) pl pl ans. See Ho For lden, Van exa ansmple, for their entire careers. Th Der 51 hei, and percent Bass 202 of participa 1.e R nts eve are in pla nue Act of ns wi 1978 th co more ntaine td han 2,50 a provisio 0 par n thticipants, a at became In nd tethes rnal R e s eve ame nue C plans ode median was $4,538—in line with prior years (Figu Sirze e A o11) f Ac. T cou he nt ratio Balan of ce the loan outstanding to the remaining account particaverage ipants in th 401 e year-e (kn ) dpl 20 an 07 account EBRI/ICI d b ataala basnce e. of about $38,000, compared with an average 401(k) plan account Morningstar. 2022. Morningstar Lifetime Allocation Indexes (June). Chicago: Morningstar, Inc. Available at 20 tenure. Hold investmen en, T Sarah he m t , Dan opt edian ions whe i ten el Schra ure n a a s target da t the curr s, and Ele te fund suite is ena Bar nt employer one Chwas ism coun . s2023 ted as ix years . “Defi a s iin n gle i ne 202 d nv 2Contr , estmen similar ibutio t o to re n ptio Pcent years lan n. Su Partic rveyip s . of indi ants’ Act vidua ivities, ls owning First 0 Funds Date Funds Date Funds prices. account balances tend to increase with tenure. For example, the average account balance of participants in their sixties from the number of active participants actually reported in the Form 5500 filings to exclude (1) individuals eligible to Inves 1 2996tment Options 200 0................................ 2005 ................................ 2010 201................................ 5 2020 ................................ 2021 20......... 22 14 S acco ectiunt for on 401(k). 50 Th pee law w rcent of ent i all plan nto eff ass ect o etsn Janu . Because mos ary 1, 1980 t o, but i f the plans h t was not until No ave a small vembe number r 1981 of partici that pro pan posed regulatio ts, the asset size ns 3 balanc Eq e was uities in 1 cl0 ude p ercent equity fu at nds,y cear omp-ae nnd 202 y stock, a2 n d( Fi the gu eqrue ity9 p)o. rtIn a ion ofdd baitio lancn, ed fvar undia s. tion arou Funds includ nd th e mutu is averag al funds, bae nkte co nllds to corr ective trusts,espo life nd 25 1 to 10 11 to 25 26 to 50 51 to 100 101 to 251 to 501 to 1,001 to 2,501 to 5,001 to >10,000 All Plans balance of about $312,000 among participants in their sixties with more than 30 years of tenure. https://assets.contentstack.io/v3/assets/bltabf2a7413d5a8f05/blt412138a41867a7ec/62b0778ea064e356abaf4 The IC DC plan E Bo Plan fA U -specific S acco Corp uo nts f ra informatio te Iind tha ndex tract n on lo kD s C th- eowing individua pean rfo provisi rmance oons is ava f invls appreciate estmentil g able for the ma rade c the inv orporate estmen debjo t trity o hat t choi is p f th ublice an c e plans ly issu d co ed in t inntrol thh ee sa U an S d mple ( o d typicall mesticincl may a uding v rketgree th and d irtuall enat omtheir iy a natell o d inf US Quarter 2023.” ICI Research Report (July). Available at www.ici.org/system/files/2023-07/23-rpt- Note: The tenure variable is generally years working at current employer and thus may overstate years of participation in the 401(k) plan. partici with up pate to t in a 40 wo years of 1(k) plan who ha tenure was d not ele $46,60 cted to 9, compa have thei red with $ r emplo 312 yers ,092 mak for e co partici ntributio pantsns; a in th nd (2) no eir sixties with nvested f more orm t er han 30 insurance separate accounts, and any pooled investment product primarily invested in the security indicated. 250 500 1,000 2,500 5,000 10,000 N were issued (see Ho ote: Account balances are lden, B participra andy, an t accoud Hadley nt balances 2006 held in ; Empl 401(k) oyee Benef plans at the pa it R rticiesea pantsrch In ’ currenstitute t employe 2018; a rs and are nd I netnte of prna lan l R loan eve s. Rnue S etireme ervice nt for many plans is modest. At year-end 2022, 24 percent of the plans have assets of $250,000 or less, and another 30 with age (the older the participant, the lower the average), tenure (the longer the tenure of the participant, the lower Note: A target date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it Sourc es: Distr Federa ib l R utio esen rveof Ba P nlans, k of St.Partici Louis, IC pan E Dts ata , an Indid ces As , as nets d W b ilsy Pl hire A an ssoS ciia ze te s .................................................................................. 14 Sourcc5a/ e: Tab 20 ula2 ti2061 ons fro7 m_Mornin EBRI/ICI gstar Particip _ aLifetime nt-Directed _Alloc Retirem ation_Jun ent Plan Da_202 ta Col2_ lectRe ion cons Projectituti t on_Summary.pdf plan offe the smallrs a plans goo ). S d li ome pl neup of i ans wi nvestmen thout this informatio t options. See Ho n are cl lden et assified as h al. 2024.a ving a loan provision if any participant in the plan has recsurveyq1.pdf. 13 savingSo s hu erc lde in : T pa la bn us la a tito p nre s fvro iom us EBR empIl/o IC ye I Pa rs o rtr icro ipla le nd t-D ovire er cin te to d IR Re A ts ire am ree n no t tPl in ac nl u D da etd a. C Th oe lle tc etn io un re Pro vari jea cb tle is generally years working at current employer and thus years emplo of yee ts who had n enure (Figuot re (at the time the Form 5500 fili 5). Similarly, the average Nu accoun mngs ber owere submitted) f P t b artala icipnce ants o inf p Pl incurred th a articipants n i e brea n their fort k-in serv ies icwit e perio h up d estab to two lishe years d by 41 approaches and passes the target date of the fund, which is usually included in the fund’s name. Funds includ30 e mutual funds, bank 1981). percent have plan assets between $250,001 and $1,250,000. the average), and account balance (the higher the account balance, the lower the average) (Figure 10). Overall, loans m an ay outstanding overstate years lo ofan pa balan rticipatio ce. n in T th his may e 401(k) pun lande . rstate the number of plans offering loans (or participants eligible for loans) 35 Relationshi collectp iveo tru f EBRI sts, life/ICI insu 4 ran 0c1 e( s k) ep D ara atabas te accou e Plans nts, and to t any phe ooleU d nivers investme eno t p f ro All du c40 t p1(k rima) ri P ly la invns es t................................ ed in the security indicated. .............. 15 their plan; that adjustment was no longer possible beginning in 2005 (see US Department of Labor, Employee Benefits of tenure was $20,996, compared with $164,865 for participants in their forties with more than 20 years of tenure. The asset allocation path that the target date fund follows to shift its focus from growth to income over time is typically Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project from 4 14 01(k) plans tended to be small (Figure A12). So becau So u u rc S rc ee Ho ee : se some :T T aa bSo b uu lden a la lu a tirc to io n e n splans ma :s T f nd V ro fa ro b m m u lEB a EBR a tinD o R ny Is /I/Ierhe C IC fha ro I I Pa Pa m ve offere i rt EB rt2001a iic ciiR p pa a I/n In C tt-D -D I. Some o d a p Pa iire re rt c cittc e eila d p d a R R n loan, but no ne e tf th -D t tiire re ire m m is mo c e etn n ettd Pl Pl Rveme a a e n n t i re D Da a m partici tta nt a a e n C C to o Pl lway f lle le pan a cc n tti o iD o n n t ha a rom Pro tPro a C jd e jo e c c tak lc lte ompany tctien out a on Proj stoc ect lok ma an. It i y be s li the re kely th sat this omi ult of regulatio ssion is ns put referred to as the glide path. Because discussions of asset allocation usually focus on the percentage of the portfolio invested 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 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 ebri.org ebri.org ebri.org ebri.org ebri.org Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Is Iss s s s s s s s s s s s s s s s s s s s s s s s s s s s s s sue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue B ue Bri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri riA ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef resea • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri Apri rch repo lllllllllllllllllllllllllllllll 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 30, 2024 rt from the E • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 No. 606 BRI E ducation and Re search Fund © 2024 Employee Benefit Research Institute 29 23 18 24 17 15 30 14 10 27 16 12 25 21 31 32 13 26 20 28 22 11 3 7 9 2 4 8 5 6 19 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23