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Interest in target-date and other types of balanced funds remained strong through 2014, with younger plan participants more likely to hold target-date funds than older participants, according to a new joint study released today by the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI).

  • Since 1996 the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI) have worked together on collecting and analyzing annual data on millions of 401(k) plan participants’ accounts. This report reflects the year-end 2014 update of these data and EBRI's and ICI's ongoing research into 401(k) plan participants’ activity.
  • The bulk of 401(k) assets were invested in stocks. On average, at year-end 2014, 66 percent of 401(k) participants’ assets were invested in equity securities through equity funds, the equity portion of balanced funds, and company stock. Twenty-seven percent was in fixed-income securities such as stable-value investments, bond funds, and money funds.
  • More 401(k) plan participants held equities at year-end 2014 than before the financial market crisis (year-end 2007), and most had the majority of their accounts invested in equities. For example, about three-quarters of participants in their 20s had more than 80 percent of their 401(k) plan accounts invested in equities at year-end 2014, up from less than half of participants in their 20s at year-end 2007. Overall, more than 90 percent of 401(k) participants had at least some investment in equities at year-end 2014.
  • More than 70 percent of 401(k) plans included target-date funds in their investment lineup at year-end 2014. At year-end 2014, 18 percent of the assets in the EBRI/ICI 401(k) database were invested in target-date funds and 48 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.
  • A majority of new or recent hires invested their 401(k) assets in balanced funds, including target-date funds. For example, at year-end 2014, two-thirds of recently hired participants held balanced funds in their 401(k) plan accounts. Balanced funds comprised 42 percent of the account balances of recently hired 401(k) plan participants at year-end 2014. A significant subset of that balanced fund category is invested in target-date funds. At year-end 2014, 35 percent of the account balances of recently hired participants were invested in target-date funds.
  • 401(k) participants’ investments in company stock continued at historically low levels. Only 7 percent of 401(k) assets were invested in company stock at year-end 2014, the same share as in 2012 and 2013. This share has fallen by 63 percent since 1999 when company stock accounted for 19 percent of assets. Recently hired 401(k) participants contributed to this trend: they tended to be less likely to hold company stock. At year-end 2014, less than 30 percent of recently hired 401(k) plan participants in plans offering company stock held company stock, compared with about 44 percent of all 401(k) participants.
  • 401(k) participants were less slightly likely to have loans outstanding at year-end 2014 than at year-end 2013. At year-end 2014, 20 percent of all 401(k) participants who were eligible for loans had loans outstanding against their 401(k) plan accounts, down from 21 percent at year-end 2013, although up from 18 percent at year-end 2008. Loans outstanding amounted to 11 percent of the remaining account balance, on average, at year-end 2014, down 1 percentage point from year-end 2013. Nevertheless, loan amounts edged up a bit in 2014.
  • The year-end 2014 average 401(k) plan account balance in the database was 5.4 percent higher than the year before, but may not accurately reflect the experience of typical 401(k) participants in 2014. To understand changes in 401(k) plan participants’ average account balances, it is important to analyze a sample of consistent participants. As with previous EBRI/ICI updates, analysis of a sample of consistent 401(k) plan participants is expected to be published later this year. The average account balance tends to increase with participant age and tenure.
  • The average 401(k) plan account balance tends to increase with participant age and tenure. For example, at year-end 2014, participants in their 30s with more than two to five years of tenure had an average 401(k) plan account balance of close to $25,000, compared with an average 401(k) plan account balance of nearly $275,000 among participants in their 60s with more than 30 years of tenure.

ebri.org Issue Brief • April 2016 • No. 423 29 Figure 1 Appendix: EBRI Issue Brief, no. 423, April 2016 Appendix: EBRI Issue Brief, no. 423, April 2016 Appendix: EBRI Issue Brief, no. 423, April 2016 Appendix: EBRI Issue Brief, no. 423, April 2016 Appendix: EBRI Issue Brief, no. 423, April 2016 Appendix: EBRI Issue Brief, no. 423, April 2016 Appendix: EBRI Issue Brief, no. 423, April 2016 Appendix: EBRI Issue Brief, no. 423, April 2016 Appendix: EBRI Issue Brief, no. 423, April 2016 Appendix: EBRI Issue Brief, no. 423, April 2016 Appendix: EBRI Issue Brief, no. 423, April 2016 Appendix: EBRI Issue Brief, no. 423, April 2016 Appendix: EBRI Issue Brief, no. 423, April 2016 401(k) Plan Characteristics, by Number of Plan Participants, 2014 Figure 25 Number of Plan Participants Total Plans Total Participants Total Assets* Average Account Balance Figure 21 Average Asset Allocation of 401(k) Plan Accounts, Figure 49 Figure 37 Figure 5 1–10 27,279 132,408 $11,171,652,271 $84,373 Average Asset Allocation of 401(k) Plan Accounts, by Participant Age 401(k) Loan Balances Asset Allocation of 401(k) Plan Participa Many Recently Hired 401(k) Participants Hold by Plan Siz nts Withoe u and Investment O t Equity Funds ............................................................. ptions .......... 26  d e R G A Figure H ha C D • b Figure q a e o us o v ief t d t uit s m ld e a w t t 4 b r ac p e m r eren e ya a a 0 n, ie a b c se fg r 20, 45, ..1 n und n, o ing u e S 2015a 2015b (k u ,$20, t a L 4 Per n A ii rt ) p o s c t rla oa 0 a e in e h, b s m 1 n c 000 centage of 401(k a al of e ( s .p .n a L k) Plan J r n an o P M y B .a tic tssi , r 4 c ly o ho a iv c a a k rn ip e 0 b a nd ning lhi ld d V s a t l1 e a e a rn t Assets Are Conc $40, ( e n e T h nD tP k c d o q s ts ho at e e ) t uit e p a lin ns P w s m 0 w r r a h i00, io r k e a L e a e t e s if s re ic r n ind i, r t e ) Pl e in ip L it P c a lc .h o iv y a la le nd t ie S w c ans Offering Loans, nt pa he id n t s le m e e s s ua L B r in n e fuis A in ulle s o td ent t lm llo h lig s rs im 2 an a e ’A a c t0 n ie rated h in, c a B lo 1 o rtt $ a ra 4 o fns io .ly c 7 s lA c 2 c n w 6 a s o o b o 0 lik , n .it m in E I 2 s p u 0 nd h 2 t c 9 la n 8 p r e 0 e 3 a t.s a ns ly e 0 q ,d c in b “ xe m 9 tuiti H t to a y h .Fu a by Plan o il lo sa e c s “ a f— w e h r t 4 n rn 2 o s o s 0 c U ia 0 c C s ..................................................................................... 22 a d A z e 1k s g .0 e ha v ( S w e 9 k e a o .o Size, ) ng la lo rg F In f m l s P oc r o tt o e hr lv a h r a $7, a s up m e je a n n o o s in 2014 t s r ug av t47 s 5 A it io o on 5 s S y in rs e h 4 s 0 u o ro e 0 ag b c 1 s ts ( i................................................................ 42 ftn iJ a 9 b a A une tA ta e l9 2014 l he a nnu llo y 8 S n ac n A e c a c )r d e c c .e a a lg in s u o d c tl C ( o io e r u o Re Fi hic g it f n rund illus n, y g a d tp a u k A b t y o A g e ral fs te rc o e frt . e c an a p : e s16) F o c te a M ( ina e tu c r V rs n s o Re e .-e . t r.e t ll L r ning h T y B c s In n oa ,his e io al n d t nt tg n f 201 an he a a s e im ts 1 c Re r a c s t.-o e ,r 1 e tp ,e v ts t ) 4 t 3 rir e ,n .Io 9 a e n ru an W v .llo a m c h 9 r ell .e a an s d e c p d A s inv a n te hing L v he tt at rc o io a e T a ila e n s rn n tt e y b o m ttn e o le n, d o e a s fnt r a .-t” Figure 27 Jack VanDerhei is director of Research Aboat ut the Employee ChangesBe in nefit AcResear count ch Institut Balane ce (EBRI). s Sarah Holden is senior 401(k) Plan Asset Allocation, Account Balances, and Loan 401(k) Participants Represent a Range Figure 20 of Ages 11–25 17,141 Appendix Figure A1 288,799 $24,725,359,046 $85,614 a a 19 Average and median loan balances Appendix Figure A3 for 401(k) Figure 7 participants with 401(k) loans, 1998–2014 P High Concentrations in Balanced Funds ercentage of account balances, 2014 Percentage of account balances, 2014 o t Bh fu a e i T rh h un a e l tdi m om a v , a t ia du etn st ic d H a a en l. T vo a rh lio d le a len lbl m im e 2 en pa da 0t1 i ct2 n ta o ) 2 f . A fr0 a o1 m c c 4c o . t o O m h upl e U fn t tet c h.e e n o Sn .a D so n ea a e llr ipa y da ly si 6 rts o tio m 0n 0 fen v pr pl a ta o ep rn ie fs a d w L su ra ebo d rit n vh rey ess a th ed, r f e e f opa 5 r o r r2 r pl et .t4 ic i a riper p em na y n c en ea ten ’s tr w t 2 a h g0 o e a 1 u d 3 a l a d r ( nd t u seq ee toen m u U iu r a.e e r tSie w c . D en stepa iitm rhoa t lrlth m tin m een g c en pr u t i t r o o rnen j 2 ec f L t0 ta 1 em ebo 4 d ,pl c ba r,o o ly m aer npa c.es red p b p in idart a aela r e Asset Allocatio nt tq iin D h e N A c cuit if c iit n c B C p p ic te tp d E :a a iie d a v :R n n 2013. U ti/ sf tio t t/. und y s W sc S an or c .ih io n n ro D ad rp o sk f200 te o s h ing t a s p A re ac e n a c a t nd a i to E t8. trr c iv ll e y P to 20s m e e ” .m e a 4 u d a p In 0 e n p r A q or e 1 nt t -ta v uities e o e r ( sset A n r ,e b a k n to b is al ) no r ic n d f n t e g p m an i iL p 2014, .n s hig la .................................................................................................. a a e tg 1 cb n a nt n e 4 r o llocation Distribution of 401(k) Participant A he m ts 1 p .c s r Co 0 o a , o om ra 20 5 r r E fnd t in e m m ic l( e /J t p p ip u 2 p s h une re an s 0 s e lo a a r /1 s n c nt ty d y ult h 4 e )e oc $ s an .nt In e t 80, e C h is u d s B a o a m $ t e p n m f000 iin 1 t e ne ra u 0 b in e n ll tt ,s rtfe 0 he id e s/ it 4 1 t 0o nt R s 0 9 g 0 I Figure 42 r e 1 9 n e S ,$1 e e Figure 44 s ( 8 d ,e d w c k e Figure 12 ,e M c 00, la . ) ar h x u r A s is ip e rlc s e : it 000 a s/ ing h i y frN 2 ic A t P ic a 0 A sse a e ft.d ip h tro io 2 rs io m a a t n p m p d n A nt ini a e e l a l lc o rc 9 s o s tB f m tc ie w p v ur r1 a n a e e e ho .ttt e 2 rc d i io o 1 a o i e n a 5 m w u n fn n sS , illio p e o ( tn a r J ar u fo o. e a cm E fn tc nua e ic o t c 2 m lig p h o iu , p a no e a n r a an ib r ccount ry tn t ac y m ) le ic d b .t.p s c ip a ic A E fd o lh o a a v B fu Re r ad nt n a R n il lo ctI s a e a a a e b Is b c c n o a a le c ............................. 26 c s r f s lo an o u c $53, a ha unt h. u etc n B d e A ts ri s 87 v b lo e ta o al h fa ila 1, f,a an n re n t s b w o c w lce e .h e e s 335 in a r l e e t t gl y rte h at oseer   director of 26–50 Retirement and Investor Research at the Inv Figure 18 estment Company Institute (ICI). Luis Alonso is director of Aon Hewitt. 2015. 2015 U Average Asset Allocation of 401(k) Plan Accounts, by Participant Age niverse Bench11, ma 492 rks. Lincolnshi Figure 46 415, re,747 IL: Aon Hewit$33, t. 397,801,963 $80,332 Whe n analyzing the change in 401( partk) icip P an lan t ac A cosset unt bs ala A nc Figure 10 Figure 14 re esCo oven r cen timet,r it at is ed im p in o E rtaq ntu tit oies have a consistent sample. A In m do ivng idu p al a r4 t0 ic1 ip (k a) n tpsa w rtit ich ipo an utts st’ aas nd sing et a 401 lloca (k tio ) n loa to n sb a ala t tnc he e d e n fund d of s2014, varie dt h w eid ae vly er a ag ro eu u nd np a an ida b va elraan gcee ow f a 2s5 $7, pe78 rce0, nt at Percentage of active 401(k) plan participants and Activity in 201 Asset Allocation to Equities Varied Widely Among 401(k) Plan Participants 4 Percentage of recently hired participants holding Domestic Stock and Bond Market Indexes Non-Target- E Figure Figure ndno 46, 21, t 401(k) Loan B Average Asset es alan Allocation of 40 ces as a Perce 1(k) Plan Accounts, by Participant A ntage of 401(k) Plan Account Bala a g nces e ............................................... for Participants With Loans, by Plan ....... 23 Tenure Composition Non-Target-of DatSelected 401(k) Plan e Figure 4 Account Balance Categories a w E Ttm h i r te l h pl et 50. o a irr yem ges e2 p e B en t i e en tn r b ccef e ryn ea i ttas S i se lso n 2013, s i ec cn o u a n risi tv y 39. der er Percentage Aa dige 6 n m g r p in a eic et r sc c to ir e ra New u n em tn tio i ten ba n n of 401(k) Plans Offering 2015c 2008, t401(k) Participants Tend Not l i an ncco e a m ) o . n e f cd c 10. u ro rr m ed a 5 S p oer m cic a oen ln S g o a,b tec in u lder 2004. rit Loans, y p , a def r U tiic tnk ito pa e u by d sn Hold a ben t s w Plan Size, ndef Y itih o t f u pl n ew a gn 2015 r er s, y I 2014 R ea Ars, e s o p a ofn r t t d o s en tt h uh a rer e. t 36 D Fo C p r p e ex r la ca n em s, ntpl oe, f t hir e m h arn ult aend w ( www. ou ip in $ O p w le g 100, c ta s w t r m o ta ta .ib c 51–100 d n o c nd Ratio of 401(k) 00 c e ip o b re o rl. e ing ) a un 0 g r.tn . h o ( o A tt a Fi v s s rv an g / g ai g in o e /u $ a w p b lab r ins 100, 1 a sne ea 9 p l/ 9 e 1 e td P 8 0 rt 00 at D s he b )/ t.F y o w1 0 w / T ir Plan A 2 s4 h w h ing 0 4 4 2 e a w 0 0 1 d p 9 v 1 0 .le ie ari p ( 5 a c k re i ind c .ccou m )at ns o e p re nt ig/ iv io o la d n id inp 8, n pdf in a n u in 519 n ac t la a 2 /a ls 0 Balance to Salary ac nb pe cc1 o .c c 4 u ulle r T o o 1 n u h ( u 5 tF n is n s -tig t02. ,in. t p b ur d b ra p o o al p e ld w c a d an 607, fe 4 n n f d 0 c an cfur e )e ro 592 . s d o e T m f p he w a $44, ar llo 2 w for Participants 1 tsw w l ha yp .513. se e re rE br rc efB le ie o RI .n o A c f t t rm $46, a s g/ a at c o nd tc pdf h n o 280, y e g unt e I / C e a lbr ofr I 220, n f- b e iin t e g e o a c nd e f tl276 sb a Their 20s, by r spdf - nc e t 2 og e0 fe nur in /1 p E s3 art B tin ,o e R a d v iIc c lt e _ o ip ho s p Ins a tB an e r_ ug t o di1 tlid c 0 Tenure in h ag ip $76, -a2009 up a e t en e q ,t 170 uit s ft ar e c o in _N n y cm u ofto re unt und he 335_ , ir s 6 K 0s - 401(k) Distribution Plan 401(k) Loan Acco of 401(k) unt Balances Less Than Balances as Plan Accoa un Percentage of t Balances, by $10,000, by 401(k) Plan Size Participant of Accou Accou An gt e cBalance nand Tenure t Information TechnoloBalance to Equity gy and Research Databases at E Percentage of account balances, Funds, by B Av Figure 9 R Participant A er I. Steven age Me Bass dian is an ge, T 2010 associate econom enure, or Salary ist at ICI. This Issue Brief Changes in Concentrations in Equities S 401(k) plan incbalanced fund assets, e the Financ assets, by ial Crisis participant age, selected years .............................................................. 2014 ............ 26  Co c yo em ar mp -pe a an rri e dn d g 2014 w aiv th e rag ($7, Fig e 421 u a re c c20) io nu tn h . te F b oyal re an e ax r-a cee m n sp d ac l e 2013 ,ro 41 s Ts arget p d de a ifr tf-D c a ee b re at nt ae n s e to fy ( e Fi pa a grru -te irc e nd ip 49) a s nna t.s Th phe sho eld m t no se c d a ib a n a nla le lo n aa c de n t d o b fafund la als ne c se ,c w o on u hile c ts lus t a3io n8d n ip s ne .g rc F w o era n s t e xa o $4, f m 2p39 le, at Asset allocation distribution of 401(k) participant account balances Equity a Date Balanced Bond Money GICs /Stable- Company c,d Plan SpoSize, 2014 nsor CoE uq nc ui.................................................................................................................... til yo Percentage f T A ar m ge et ric -D a a Month-end level, .t e 20 of participants w 1 High Concentrations B 6 al . a5 nc 8te h dAnnua B December 2002 to November 2014 Appendix Figure A3 Appendix Figure A1 ol nd iS th uraccount veM y on o in Company fey Prbalances oG fitIC S sha/rS ing ta in specified ranges, 2014 Stock bl a end - C a 4 om 01 pa (k ny ) Plans: Refle .......................... 43 cting 201M 4 em Pla o: n 101–250 7,167 b 1,139,574 $80,840,573,404 $70,939 B arclays Capital U.S. Percentage of Aggregat e Bo n participants w d Index. San ith F Percentage of Account Balance Invested in Balanced Funds account balances less rancisco: Barclays Glo than $10,000 at bal Investors. year-end 2014 D po B am C y ssi pl oJ n EBRI/ICI 401( bl a a g p n ycs i fk arr n otV m it ca h i pr pa ei nDe rn ev r tec s i ioru n ohe s Percentage r tdk em h k) iei , ee Balances for Dat rpl E pi 6 o B 0 n 401( yR s g s ma w I en ; k y base Represent it ) Non-Target-date st h t S of participants w pl ( t em a an fw orr o i a av ex o nh er 2 Participants ra f ag H 0 m ew 1e as o pl 4l o a er e, df s s e fy et er n, ea ee al a ir V lth s o oc u Ia tC s at o account n With f a Wide I m t D ion, ;e e a n Lui r t per ih u cei 401(k) Loans, by en re, 2 s cent t r balances 0A o h 1 Cross Sect lag e ll4 m o )a e ns .en v F of er o t o t,a ot r u r ,g al p in specified ranges, 2014 ef e a E as fer B rc o sR en c et m o I s c Plan u 3 b; ,e ion of n 4 s t a 2007?2014 t ba nd poe o Size, r la c tn S e h t c n er te i te h i su 2014 ve n n e 401( 2013. ccrn h ea rB se ese a d 1 In k) s as t r2 c Univ ,h h per eI , E se C40 c B Ie M en R erse I/ t w IC aciI D th o t nh ale d s w d ba al e iltc a h an re r U 18 y $20, c as pda ,e c p s eo e d 00 ft nt ro ec o r .re 0 v pdf ib in e n tut tr o d a it io v $40, h ti n e d y u e s bal a 0 am er00 s ha - e e ac nd v in p io ro e r s 2 s Snapshot ri ,a 0 so r l 0 a o d d8 rllo ,at y .f v a ro iLn e o p m ra 20 s ro ns 6 f14, v r 5 of io o d m u p e Y te trs h so rc t ear- e ta t e he o nd m n p t reing E ro d fpo ind la a v r n ia n d re m se Figure 50 a 401( ,c c o e a a c unt n s o m s tu lk) e y o n et re d t h Pl a b i llo tre ac o aan l d c a 1 ca n u 1 p tc A r io art a p eccount n, te e w irc c a iw e p es sit n an t$61, hd tim tos Bal at rf a it0 n e w h12. e a 1 oa ls 9 fre nces 9 ,a Fo 8 m v lo ertai a rag on ln o 3 in a n e 7 g c g te ac p iac v re-it crc to c y eo e u ,nur u n n a $7,780 n ttnd e tfb o d b al r e al p a m re a an np rc ctlo e e c ic e n sy ip ,te p la o y re n n rht isre in d was written with assistance from the Funds InstitPer ute’s r Fc unds entag esearch Percentage, 2014 e of and par Funds tieditor cipants, ial s Funds 2014 taffs. Any v Funds iews expressed Value in this St report ock are the addition of a large number of ne to equities, w plans w by age, percentage of participants, ith smaller balances to the databas 2010 e would tend to pull down the average p A y 20e as ar rDistributio tse i-ce ip n ta d A nt 2014, s ll he o n of 401(k c ld a c o m tm io o p rn e a r t t )eha d Participants’ o n w Eq i8 th 0 u $3, pe it rc 973 y e F n Balanc t iu n o fn t h td h e ed es y ir eFund Alloc ac ar- ce on ud n t2 s0 i1 a ntions by A 3 b d alat an ab ce as de gfu .e N n ......................................................... d es v eartt he the le s esn,d t he of 2014 ratio o (Fi f tghe ur e lo 32 an ).out At st......... 31 ay nd eaing r-   400 Figure 22, Distribution of 401(kb, ) Plans, Pa c rticipants, and Assets, by Investment Opt 1998 c ions, 2014 c ................................e. 23 April 2016 • 251–500 No. 423 Average Asset Allocation of 401(k) Plan Accounts, by Participant Age 3,594 Asset Allocation to Equities Varied 1,264,446 $83,070,891,772 $65,697 1 A Fo gre aG n rou ana plysisF o un f t Percentage of ds he cha Fu ng nd es s in a recently ccoF unt unds b a hired participants lanceF sund of c sonsis Ftu ends ntoffered company parV tic al ip ua e nt Fu s nd in t s he E stock SB toc RIk /Iholding the CI 4O 0t1 her (k) da Utn akb na ow se i nn t E he qu w ities ake of Acti 9ve 401(k) Plan Participants 60s $7,495 GICs /Stable- a 92% b $7,421 E xp .. e2 2015b r0 ie1nc 3.e Equity .“. E P Ch frfiv eic c atag ts e Target-date o o Pf:e S P ns o lan c io ia n S l p P Sla o en c n Balanced u so B rir ulle tyCo Ptu o in, lic nc ie iA l b s o s Bond fo t r n Aam B cte e ri o ne fc Money a. f2it0 1 C2 la im Foirng m ,5 Re 50t0ir e Am nnu eCompany nt a,l Re and po S ra tsv ing (Ve.r ”s N ioB n E1 R .2 W ).o W rka ing shing Pap to en, r, For da70 t 10 a P % o 0% lan n 4 Size 01( b ky ) N pl ua m nb a er o sset f P s, a pa rticr ip tia cn ipa ts nts, and plans through 2013, see U$7,346 .S. Department of Labor, Employee Benefits 4 a co n 0n d M 1s (o k) lid o da oarte 2 tio aba n0 o 1 se f1 t a a hn d ed d iri H m tio ou na lden ltip l ile nf a 401(k) Loan A o a n 401( rc d V m co au a tk in n o)D tn fo plan ser . Amo hrei s 2 par on m 0 g m 0 e p tic 5 b ounts Vari a .i F a rt pant la o icnc ri paa e n ac n d a t fund s c $7,292 n i ount an ed A ly ts si h r s o ee balanc ir c s 20s ful ross 401(k) Parti 5 t0 th e s e do i po es r n t 6 ss ,0 he is s blelec iw r e i r ite h m m ctpa led y as o cs rtc ie o fiear t icp fha a a ants ts iu n 3 otn i om 0nt y ao tei c a t i a rs n r o get crf t e-ad e se a nur ts e fund ie n, p the arst . icT ipa he nts’ c t ind ph o art e nt iv irir av c id ib 60s ip ua e ut a rn ag io l.e ts a n e ri,n rn a at i n t2e g 0 y s 1 e .m 4 a T o .r Age Group his -rCo e en tm r d h e a p s 2014, n e a a n$100, r yc h s 401( tdo ro e c 00 w p ko n k 0, al r ) 1 t plan c s t o e h p xa e e d >0–50 percent rc e m m cele ine har in n dte iag an sd ac te f he ter o a p c r o c rt io s e ih ntla u e t ic n tfts io tro w by b ns o m al hip g number an y >50–90 percent ro ec ar u b ep e -w s e t w nd as oe f of par e re $ 2n 3 0c8 1 a e2 c 3 nc ,.tic t5 o lN y 3 un i e 1 pants hv .ti re e b rd tahe >90 percent l:a p nc le art seiss c, i p a lo an nd a90% n t s pa ,a m frro to icunt m ip a 9s nt p es e d ’ rc g ae e gd n e t ,up of a Percentage of Account Balance Invested in Equities 4% those of the authors, and should not be ascribed to Percentage the o Figure 30 of ffiAc cers, count trustees, or other Balanc $7,191 89% e Invested in spo Equity nsors of EBRI, Funds EBRI-ERF, or their 380 $7,153 e ac to n c d to he 2014, un rte b m a a n lan ining eacre ly. a 6 Tc0 his c o p un e cro 3% c tuld eb nt a l ta bo he nc f n 4 e0 b d 1e( e k c m )r e is pat as a re k tic d e nl ip slig y a nt d ht e sly she c,r fib ld ro e m b da a la 1s2 n a c p n eed ind rc fe und in cta a tsio tt n h ye rto ar hug a -te h n b 88% d a ta la 2013 rg ne ce t-s d ta a ot r e e 11 fd und e pc elining rs c ean nd t, a b no tut yn e a – ac tra t-u e rg a ne ll d ay t -2014 date 501–1000 Asset allocation distribution of 401(k) participant account balances 2% 2,398 1,685,045 $114,790,177,964 $68,123 20s 32.1% 42.4% 6.0% 4.4% 1.5% 1.9% 5.1 $7,027 % 4.8% 1.8% 78.1% Figure The Distributio year 47, -e Few 401(k) Parti 39.9% ndn of 401(k 2014percentage EB 20s R)I Funds / Participants’ Com ICI cipants Ha 40of 1(k their account balance ) dat d O abutstandin Percentage of account balances, 2007 p as ae n 84.9% y Stock Alloc showg s 40 th1(k at,indicated in company ations ) o Loans; Lo n av 87% e................................................................ rag 7.3% eans Te , 43 pende rcen dstock, t to of Be par Small, 1998–2014 7.8% ticipan Sel t ac ec cted Years ount balan Total ............ 31 ........... 43 ces were   the fin Age Gro 48% anc Aill P alu c la rin Funds si ss (over the six-year peFunds riod from y $6,946 e Funds ar-end 2007 t Funds o y Value Funds ear-end 2013), s Stock ee Holden Other et al. 2015. Unknown Bloomberg Data. New $6,856 York: Bloomberg L.P. n D o C ..: 1 2 U 9 0 .0 S 17 .0 1 .D “( e4 M p0 $6,815 a ay 1r( t)m k.) e Ca P nt la m n obfA ri Ls da s g b eeo t, r A ,M llo E Am :c a p N $6,839 tlo at ioy n, io en e A al B c c e B o ne u unt re fitau sB S ao e la fc nc E uc re it osy no , A am d nd m ic ini L Re os as tn e ra a A trio c cth. n iv i $6,846 (A tJyv a a nua in ila 2b r 0y le 0)9 .a .A ” t vIa nil ve ab sle tm a etn t Company $90,000 $6,821 Year 13% Security Administration 2015c and 2015d. For total retirement assets (including those in 401(k) plans) through the end of c ave avai ont rlag rWhere the world turns for the facts ab ibe ut il ac itiy o o n r co f(Median $6,717 u a tn a te r t b g s Age Group i et al n -an d aAge: 46 Years) a ut cte e o i fund m na c401(k) Loan Balances as a Percentage of t rie cs as e w nr eas do Zero 4 llre m pv e eint r sc ee p dnt u la w p ns w 1–20% 41 a i,ta s h t re de h f V e ro c a m 2 o nDe ns 84% 0 o >20–40% r0 lhe id 7a f on U.S. employee benefits. i a to io rw nn o da C 401(k) Plan Account Balances rd f t o p h (e s >40–60% eee lia rnd m Fi 2 ul gu t 0ir0 pe A 8 le, b a V 2c >60–80% aicn no t D unt h ee a rh se . F pp i 2010 ut en ur >80–100% di e,x j a )o .n int d V ra e n se Daer rch h w ei a itn h d this t 401( enur b ke i)t, p ia n la nd 2014. n a sa cc la o EBRI/ICI 401( r u yn . t b 30s alances in k )1998 databas to Z Asset Allocation to Equities Varied er 3 e in 2014 v ope 86.0% rcent in er 201 sus 4. 1–20% 10% 2013 DO 7.6%L Form >20% 5500 for –80% all 401( 6.4% k) plans >80% staffs. Neither EBRI 360 nor EBR$6,644 I-ERF lobbies $6,659 or takes positions on specific policy proposals. EBRI invites comment on this 1,001–2,500 1,927 2,991,775 b $215,287,176,504 $71,960 Figure would 30 s t23, e90 ll Average Asset % us not 43 hing .0% abo Allocation of 401(k) Plan A ut 2 7. c1% onsistto equities, ently 7. 0% partic by age, percentage of participants, ipat6. ing 1% ccounts, by Participant A 11% worke2.2 rs.% Similarly2. , 8% the agge and gr 2007 eg 5a .9Investment O t% e aver4 a.g 2e % acc po tions unt 1.6% b .................. alanc 76 e .7 w % ould 24 ( bF aig laur nceesd 4 f7 und 1–100 and s, 5 sim 0).il a In r 13% taod d th iteio sn, ha a 45. rs e 7% in in p 2r0e1v3 io .u 22. s F 1% y oe ra ty r- se , iv ga hrtia 5. pt 5% e io 13% rc n ea nrto o und f 11. 40 t 3% 1 his (k )a p va ert r3. aic g 6% ie p an tend ts s h e to l4. d 7% cto arg rreestp -d ond ate 0. w 1% fund ith a sg , e (the 20s 25%36.9% 28.7% 8.7% 7.2% 2.6% 4.4% 6.7% 1.6% 3.3%30 100% a Pllo ote cr aAge Equity b te a60 d , Ja % tom ee qsuit , Syt e fu ve nd n Lifecycle sF ( . FV ig eur nte i, 2 aNon-Lifecycle 1 n) d, D wa hic vid h A is. o W neBond is ew . a 2y 0 0 tMoney o 7 .ho “Ris ld e e GICs q ouit f 4ie 0 /Stable s 1.( k H)o P wla ens v Company e,r ,L ind ifetiv im id eua El ar aning ssets a , llo and ca tW ioe ns alt vh araie t d 40s 84.1% 8.9% 7.0% Asset Allocations of Recently Hired Participants 80% .............................................................................. Figure 16 .................... 31  23.8% >5–10 Years T Ihe nt www. w In r ra o w s tio td w it uc .u o d ntfo b e p l. t e R a g i r.o e ro o ts v ic n re g / 20s ip ar e / p b aca s 43% nt h a p / e P a pre c d srs c / fo / w1 p 2 unt e 09 c1t0 2 ib v 7 9.4% pa e 1 ela f ns 1 or Participants W nc 6io , en np o. tola 3 s nb a , la 1.7% a ulle n ry d ttE in. e ith Loans, by B nd p Rd I sf A Is t o vs 2.7% er u be e age B p Participant Age, T ri os eit f, ivn eo. ly5.8% 3 co 5r 0r e (N laov te enure, d e m w 18.1% b ite h r)a. gA ev a and ilab 62.3% tle enur at e. Participants in 2015, seeAll Investment Company Institute 2016. Fo20 r a 07 disc 20 us 08 sion20 o09 f tren 20 ds 10 betw 20een 11 d20 ef12 ined a20 ben 13efit20 (D 14 B) and defined L fe ua cta us 2 re w 01ill 0.e F xp orlo 34 a r e 0di tsc heu lo ssinognit o ud f t in ha e l v aa sp rie et Widely Among 401(k) Plan Participants cy ts o o f f f t ah cis to c rs ( one. sog. lid , t at aio xes, n in sa m vo in re g s, d m etaoil. rt gages, children) that affect replacement rates, 21 2, 101–500 501–5, 13%000 13% a 45.9% 13% 819 20.7% 2,889, 7.6% 088 10.3% $209,620, 4.0% 531,864 5.1% $72, 0.4% 556 c 40s 47.7% 50s 18.5% 6.9% 81.1% Percentage of Account Balance Invested in Equities 7.2% 2.9% 10.7% 3.9% 6.9% 8.2%4.6% 1.5% 73.3% research. Figure 30s 48, 401( 47.5% k) Loan Acti 16.6% vity V 23.2% aried Acro 6.7% ss 401(k) Plan 8.8% 3.1% Participants a 4.9% ..................................................................... 44 7.0% 2.3% b 3.2% 100% 16 t 39 oel d nd B e p ere c Group ta r toc h u e e b snt e o ep a p he frulle t tild h c Funds es i p dno a e c d nn o th – ,w a ttn arg n hg e if Funds es e la o t i we -ln d a t r at r g h e e t e c h Balanced Funds b nu eal r o a m an ss vb ece sec re a rd go t e iffo ) u ,o n n ld s, td e c s e n Funds ,ro u an m p re ap d r( a t tic 5 rh i n ip e p Funds g e a h a rnt ic g ve s er hnt e ra Value Funds e r ge he ttih r a e ld ed c tc .b e oIo n u n tu n h. a rte ba d T d oa it f la r io g tnh e n, Stock ce t e- s p d ch a a aa c r te trng io cfss d iund e ps a Other n in if tfus ,er tthe e h en ev t Unknown s a y lo a rm e we ieas p r r -le w en t it h o d c h e f a p Total rv a oe r str sia -cg ipea)nt , Brady, Peter. 2016. How America 22. Sup 7% ports Retirement: Challenging the Conventional Wisdom on Who Benefits. 75% wideR lye tac ire ro m se sn p tar .” tN icB ip Ean R t W s. oF rk or in g e xP aap mp elr, e , n5 o2 . 1 p3 e0 rc9e1nt ( M oa f y p)a . rC tia cip ma bn ritd sg he e, ld M A no : N eat quit ion yal fun Bu dre s,a w u hile of E a cb oo nut om 1ic 7 R pe es rc ee an rc t ho.f At year- Aen ge dG 2014 roup 30s , 60 60s percMedian 401(k) Plan Account Balance ent of no 9.6% n–targe Account Size, or Salary t-da 77.0% 2.8% te b Appendix Figure A2 Appendix Figure A2 alanced f 4.1% und a , Selected Y sset 12.4% Among Longer-Tenured s w 8.3% ere ears assumed t 19.9% o b10.6% e invested 55.3% in equities (see In t Re •h e ad lir a w T d 50s th w iio te y w i$80, o n 80 .a n s 5, i% ea 501–1, c n h ti001–10, 000 d .o io rp 60s r - dg/ of e e 000 n v pdf — o d A 000 t 20 h i/ n g av pe g e 14 i a a n r1 gg n 6 av re h -d 03. a at e T dra e e p m r d n g o fs 45. u e re h an r 401( a 9% e re td it m w o oe A fw 449 k ttw o ) h c e .c p a e 20. iou r c lbr an cas 2% u in .m o st ac r e B u g/ tls c at a pdf o tl 3, e o u a 129, / n a n bbr 8. s t al cs b 9% ie an e e 565 s t al fs s c— pdf an ed te c /fnd E e uB n ie 9. R d nd s 4% I t _ ,t h Io $245, re B e ha _ c d e 0n v 1 at 849, e t1l3. ab y -hig 2 9% 461, h 010_N as ire he e 086 d r w r pa o art as t350_40 io 4. i 5. s c9% ,ip w 4 an h p 1k tile e s r _U al t ce ho s $78, p o $76,293 nt d s 1. h e a 6% h 557 av tin ei- e g 09. t he he bep ir r cd t o 2 fm ha 0 e s n Year-En Invesd tm 2014 Sn ent 32 Op 0apshot o tions f 401(k) Pla Asset allocation distribution of 401(k) participant account balances n Loan Activity ............................................................................................. 36  Plan O covnetrr5 A ibu t 0h s sset e ti o pna ( s sD t C th )43 r pl e.7 e a % n ds, e cse ad e P e 15. s,o9% t4 er 0ba 1(k , V ) p en l6. atn i6% ,s a h nd av W e ib se 2 8. ec 9% o 0m 07 e; tH ho e 3.9 l den m % o,s B t wi rad dy e 7. ,s a p 0% n re d H ada p dlre ivy7 a 2 .t6 e 0 % -0s6 e;c B to r5 r a .dy 1 e% m apnlo d B ye 1o r .3 g -sp % dao nn 2 so 065 1 re 0d .2 a % nd Figure see B Retirement ra24, dy 2 Average Asset 010. F Age Group orand health benefits are at the heart of w analysi Allocation of s of the i Zero mpa 401(k) Plan Accounts, by Participan ct of ch 1–20% anges in So>20–40% cial Security o orker >40–60% n ret 51 t is’, emplo rSalary a ement p >60–80% a ntd Inv te yre nr s,s’, and our nation’s e se stment e G >80–100% ust Options man and ............... Steinmeie25 r 40s 48.0% 12.0% 6.3% 9.8% Appendix Figure A2 Appendix Figure A2 Appendix Figure A2 Appendix Figure A2 3.5% 6.7% 7.9% 2.8% 2.9% 100% 20s 50% 48.1% All 14.1% 8.9% 84.5%6.6% 3.7% 8.2% 5.9% 8.4% 7.3% 1.3% 2.7% 100% 23% re sec co tird onk ae l e sn pa ep rs sh aont 21. d s c 3% ca hn an legaeds t io n f tahls ee c seotn o cflu p silan ons s. F foo r rw ex hiacm h ptlh e, e n y ew kee lyp f o re rm coed rd pl s al an ss w o can ou ld in tfen lue d t ncoe pu thle l do chw an n t ge h e ina v ag erg are ge gate a 10 ag cc eo a unt nd b te anur la 20s nc ee . Y (tohe ung hig erhe pa r rtthe icip a acnt co sunt w 68.2% e rbea m lan aoc re e ,lik the ely lo tw o e ho 2.3% r tld he t aarv ge erta -d ga et)e , f uannd 14.9% dbs sta hla an ry o (ld the er hig part he ic 14.6% r ip tan het sp.a A rttic yip ea arnt -e’s nd Washin 1,g 001–5, ton, D 000 40s C: Investm69% en10.5% t 44. Co 6% mpany In 19. 3.9% st1% itute. Avail8. 5.1% ab 6% le at 8.9.6% 8% 3.6% 29.0% 5.8%41.8% 3.4% p H a o rl t d i A c e ip v n a ,.a ila S 2015c nt ar b sle ah he Distribution of 401(k) Plans, Participants, and Assets, by Investment Options, 2008 Distribution of 401(k) Plans, Participants, and Assets, by Investment Options, 2012 a ,.ld t P P www. e r m iv te o a r rte B en rad tP b ha e ens y rn .,o io 8 an r0 g n /d p p P e a M la rpc in c e eh rB nt s ae ulle / w1 o lParticipants, by Age and Salary, 2014 fH t3 tin, ad he 091 liA e ry b b .s a t2 Appendix Figure A2 r la 0 an 0 ct c 6 e .o sf“ 4 i2 n 0 01 e 1(q 3 kuit )F P oylr an m fund s5 :5 A s 0 0 (2F 5 A ig -nnu Y ue re aa s r l R 2 Re 6 e tp a ro o nd srp t se 2 c 7 (V t)i.v e e r Fs .ur ” io tIn he nve 1r.m 0 s) to .m rW e e,n a ts hing Comtp oa n, n y > 10,000 21% 1 354 10,356,566 $834,699,478,889 $72,383 $80,596 In v Te hsitm s sy en stt Co em o mf30 p c a 0ln ay ssi Ifnic sa ti 1996 ttu iote n d , Qu oes n 2000 arte to equities, or t c ly S o50s n 2002 usi pd per le t m by age, percentage of participants, h e 2005 e n ntau rm y D ber a 2007 t o a)f. di T 10h stei2008 n acltlo ic na vti eo st 2009 nm to en e t o qu 2014 2010 pt itiie os n i sn p tr 2011 a esen rgett-ed da 2012 t te o fund a giv s2013 en va pa riers w tic2014 iipa thn tth , e 60s 37.8% 15.6% 7.2% 10.4% 5.7% 2006 10.1% 6.9% 5.0% 123 .3% 56.0% Per ha m 401( odrc e th tentage of he lik e e y lo k) ly e w a teo P rs b tho plan as rel ald fan A t 20s o io trs he e ( , b s F se ig ets u d ur t m s iv eset e r 1 a s7 y if) 19.2% ie .n I d A o n t a inv adlc e dlc sit oc t u io m ra n, ete nt 2.4% at fo ly o rp r i aton, e n iof yn le s g.c iv t th A A e32% t 3.8% n ya e eccou g a e e r- x 24% e ap n nd e dr ie 2014, tent 7.0% n nur ce B e o 67 cfo ty al p meb p rina ca ic e 19.1% n a nce ttil 4 o o n, f 0 r1 te he (k s, ce ) p n ra and Lo tlt 48.5% y io art h o ir ife c a d ip c 401( c an oun tsk t ia )b n an 2014. lance 2014; economic security a50s nd Brad40.3% y, Burham, 10.6% an. Fo d Hounded in 1978, EBRI is lden 2012 6.6% . 12.2% 4.6%the most authoritative and objective source of 11.2% 8.7% 3.2% 2.7% 100% r I 2e nv 0t0 ir e 8e s a m tm n 30s e d 2 e nnt t 0 p 1 o la 3 p Distribution of 401(k) Plans, Participants, and Assets, by Investment Options, 2009 Distribution of 401(k) Plans, Participants, and Assets, by Investment Options, 2010 Distribution of 401(k) Plans, Participants, and Assets, by Investment Options, 2011 Distribution of 401(k) Plans, Participants and Assets, by Investment Options, 2007 n . 56.8% t F io in o ns rt a he a di r e U sc g nit u 9.5% rs o e si u do p n S e o t da ftint t eh so . e v 7.2% e Iia n gr h i2014, et t y b o rofad m an 6.9% ea ce at su se tr ig m es oa ri 3.0% tte h es a d.t c 5 5 a Eq nm be u ui illio 4.9% tyn se fA u d t m nd 30s o e r s ev ic ca ao n lu ns 8.9% a w tis e ot A r k om e f rer p s o iw c 1.7% oa e le nrd s’ e r inv aet ctie irv 1.0% s em e tm 4 en e 0nt 1 t r (sk ea )p 100% di r pila m ne n ass ril,y se e Figure 49, 401(k) Loan Balances ........................................................................................................................... 44 26% Age and acc 30s ount balance are positively55.2% correlated among p 4.1% articipants Shar co e of ve Par red t22.5% ic ipant's by th Ac ec ount 2014 datab18.2% ase. Examination of Availability 70% >5,000 and Use of 401(k) Pl 41. an Loans 6% by 16.Pla 4%n Size ........................................................................ 6.0% 7.6% 3.9% 7.1% 10................. 36 8%   50s Age Group 12.8% >0–50 percent 6.0% 7.2% >50–90 percent 18.9% 28.3% >90 percent 26.8% 2014, s av aa cc le a o rrunt ag y ,60 et b h Al ac e a p ll e a c l20 o o r nc c we u % e e nn ,tr b t b to ut h al fe Established in 1978, the Employee Benefit w an p a a o v c ru e e tlic r .d t a ip T gel h a eu nt l) u s(s ,s n F tin io go uas ttr he heicn ie 5 r g 81, r 0 a t 2) ai 0 .bo 139 n s u he w t c hld at o n t si a isrst g hen e ap 24, t-td p ly 900, a e pa tnein 605 rftg und ic tipa o s4 t,i 0 n c1 g w o(m k)p o $1, a p rkr ar 899, er ed ts. i cw 733, S ipit ian m h 325, itl4 a s1 ’r l aac 03 y p,e t 9 crh o ce u en nt atg b gr oa fe lp an ga arc tt e a e ic $76, sip ,v a er a 293 nt s ae g ste a in ofc tc ho eu irn t Allwww.ici.org/pdf/rpt_16% 16_ame 14% rica_sup 16% ports_r13% etiremen 12% t.pdf 16% 15% Tenure 14% 14% 13% 12% 11% Investment Options Offered by Plan Investment Options Offered by Plan Distribution of 401(k) Plans, Participants, and Assets, by Investment Options, 2013 Plans Plans Participant Age Group Participants Participants Assets Assets th Ho eld p In DC A een, llr sc :t ie S t U nt u a.tr S a e a.g h, R De ee J 28 o 4 sp ae f 3. 0a c ar p k 2% rta c m V rh ta e ic nD P nip e t rs a e o 18 n rfp h t.0 e L s ea c % i, ho tb iv L old e uis r, ing 1 E 2 A m , lo 6 no p n .9 ns lo. o % y e oe 2 q , e uit a ( N nd Byov e n fS und 8 e et .4 m fei% tv b s se e n S v r) a eB . r cia A u e 3 sr v d .s i8 a t .y w % i l2 a it A 0 bh d 1 le m 1 a .g a i n “ tei 4 s ,w 6 0 t.3 w r w 1 a % it (w tk h io .)i n 6 cPi8 .la (o S p n re g/ ep A 7 rc t pdf .s 0 e e s% m n e/ttb pe o A efr llo r )1 p . 52 c art .A a 0 -02. v % tiio a cila in, p pan d b A fle 1 tc s .ca 4 o i% tn un th t e Bir a 6la 2 6.0 n 2% s c,e s, f bu un tds’ r at t haer rget th d e 2 t ay tpe es. 30s s o Fofr o tp atrige onts- pr date 10.9% esen fund ted. s, P in rv eleim st Percentage of Account Balance Invested in Equities 2.5% o inra s w ry r er ee sea asrsc3.9% u hm aed t nalyoz ibe nBalanc g 1 in 7.9% . 4 a e Held in m fuin llid w on Com p ho a pany r s 19.9% te t ic Stoc ipa arget n kts d da ra te w w 54.9% n f ars n om ea th re est 2000 to th eir 60s $70,000 34.1% 9.5% 6.6% 14.7% Figure 32 6.2% 16.5% 7.0% 2.9% 2.5% 100% t Figure p Suggeste oa rstal iT car ip o40s 25, 40 a y und nt % v Average Asset a s d ci e rihe re ss 54.0% ttation: ld asnd o bm a c la eha w 20s nc Jack h ng e at d 7.5% Allocation of 401(k) Plan e w s fu VanD iin nd th4 ss0 ,al erhei, 1 car ( okm y )7.5% .p p Sa F a la o re n r rah Holden, d e p x w ar 40.1% am it tih cp 7.1% ip 2 le 9 an Accounts, by Plan , p am t Luis Alonso, an e s’rc o av e 3.3% nn g etr p ag at art ey ie ac car i13.7% pcan 6.8% -oeu Size a d Stev nd tn st i1998 n b al tn h en an d Invest eic ( r Bass. “4 Fi e 10.7% 2sg 0 ,u sir ,t e ment O ti s h35) 01 e i46.2% m rat (k) Pla .p 2.0% o O ip o rt vtions e an te r n n tt h d tAsset Allocatio ........................... o e s0.8% ts an o a m al ine y c z re p ee as a 100% rie o s d am sn ,lig , pht lely 27 Investment Options Offered by Plan Investment options offered by plan Investment Options Offered by Plan Investment Options Offered by Plan information on these critical, complex issues. Plans Plans Plans Plans Participants Participants Participants Participants Assets Assets Assets Assets 10 part 0 icipantA s40s . ll By year-end 2014, 401( 43.2% k) 48.1% plan 18. ass 0% ets $65,454 had gr 6. 5.0% o9% wn to $4.6 8. t 4% rillion27.7% , re 3.p 8% resenting 6. 19 3% pe 19.2% rcent o7. f 0% all retirement inv Brad es y, te B du in rham sto,c an ks,d H inc o 59% lud ldeing n 2 0e1q 2uit . Fy o rm siut mua ula l tfiund on rs esu , bla ts nk sh coow lle inc g t tivhee c trus ont ts ri,bu lifte io ins ns o ufr em ancpl e o sy eer pa -s ra po te n so acrced oun rettsir , em and en o t tp he lan r s A thect agei vi S cou om rct e: py i T os ab it uio n 201 l60s atn iono s ffr om ac E co BR unt 4 I/IC I P b 17.9% ar ala ticinc pane t-s D if rec ind ted R s 8.1% tet ha irem t en 53 t P p lan e D r12.3% cat ea C nt olo lec f tp ion a P rtrioj c 23.1% ec ipta . nts with a 16.3% ccount balanc 22.3% es of less than Age Group c $63,929 Rus ba 2 coS ns l401 a os n u is e c rll ce t e (k) Pla e w 2 :nt T0 a o 0 bu p0 ula ld t a n r I tit Lo nd o ien c nip s ean Activity d t fr x. a on o m T t 30s s a E be B c m o pu RI us m /ICI la tl e Var , P b d do W a er tiA a ies With ci: na w p F anly n r i t- aze fDi nk ad r l e Partic .Ru cte a F rg ut d se n Re s 47.7% u e ipant r tll u ie re m C m ro e b e Age, m s er ne Russell 2000 tp o P aa lr a fc n n T p h y Da a .e w r ta nure, Acco till ic Co ipa e Index lxa len cti tm 12.8% s r oine net Punt ri o rlink e jed. ct. Balance, ed data an to d ana Salary 39.5% lyze .................................. 36 the consistent sample of   60s. Equity, bond, money, and/or balanced funds Equity, bond, money, and/or balanced funds Investment Options Offered by Plan RecentSalary Range ly hir 26e 0d participants were 20s mo cre likely to ho 30s ld tar29,101 42,165 g Plans et-date 40s funds than Participants 8,678,685 7,051,309 thos50s e with more ye $242,732,441,135 $469,802,480,229 a 60s rs Assets on the job: at 40sAge Group 10.8% Zero 3.4% 1–20% >20–40% 4.7% >40–60% 9.1% >30 Year>60–80% s 28.4% >80–100% 43.7% 48 pw a end rc w All e w n L.o td a o on l. f g p A 42.0% o a cv rt t/ iv ie cib tip y san a in /p t11.7% s 2 d 0 fin / 12 0 t0.h” 1e 3 Iir CI pe 4ns 0 Rse 6.6% io , san np ead rc la 5 nb h0 P ulle p ee rs 11.6% rtp cin. e ent cptid v o fe f 4.4% p 17, ar tn ico ip . a10, nt 10.3% s ain ndt he EB irR 6 I 0 Is s 8.0% sho ueld Bing rie fno ,2.9% n o e.q 3 uit 66 y 2.6% (fD und ece s.m be 100% r). Before 50s 3 2 60 0% 05, t 45.9% he U.S. Depa 7.2% rtment of L 8.3% abor private 8.6% pension 4.3% plan bullet 11.3% ins repor >5 ted 0-911.5% 0a % count of a 2.2% 4ctive 401 0.6% (k) plan pa 100% rticipants E 65 BtR hI bi /IC rtIN h 4 P ot d l0 a e: a50s ns 1 y T( .h T k W e m ) da h itedi e hout e tan aR qu ba ac Com esear ic tse y ou su po npa t br ny al g ch Institute (EBRI) is the only tan ges io S cn e at t w oc tAsset Allocation Distribution of 401(k) Participant s y k a tear ,h s e G a-t Ien st Cs t46.1% d 2014 w h im e /S ash ttae bl eer d u as e- $18, V n si an u lue g t 127. m Funds ber h e i o nfdu i 6.0% nst ve ry st a m ven era t o ge pt e io qu ns ity pr 30.7% per esen cen tetd do age f es n or to hte i a n 17.1% fslu sien gnced e t pa ar rtget icip -da ant te s. Figure 50, 401(k) Loan Amounts Varied Ac 16.7% ross 401(k) Participants ......................................................................... 45 r w Account Ba eic th e Equity, bond, money, and/or balanced funds Equity, bond, money, and/or balanced funds Equity, bond, money, and/or balanced funds Equity, bond, money, and/or balanced funds nt osfal l y car ohir ns y e lan fis o dtr e ces, and Loan 4lnt o 0w 1 p (-k a to ) r t- 40s p im ca ip o rta d ic n eip trs a Activity in a .t nt e A s s s aw ha laitrv h ye p g 20 brre e o1 c v up 4 o io .” m s 46.0% us e ( E F B E le ig RI Issue B sur RI s e lik / I1 C e8 lIy )up Brie .t o H 40,918 40,638 27,879 30,509 d o ho aw ft, n e ld esv ,o e c 13.1% . 42 a o r,na m ap t ly 3, an ahig sn is y h o d sfts o ICI Research a acla k s 8,300,549 6,276,906 8,177,054 6,358,616 r a( ym F le ig pv le ur e e ls o 40.9% f 4 tc he 1Pe o )ns a r rs a nd is p tt io e ele c n $298,127,169,373 $405,510,024,541 $393,851,429,251 $310,823,661,806 t ts e t ive s nd 4 lik 0 , Vol. 22, n s 1 e 54% (tly k o) d tp o ela cho line n ldo . 2 $60,329 p a an sse o a d S ole 20s ts. o dc inv i aIln S ea s ec n tm uo re ing tnt yAll t o so .ing i Sn i m cco o ila 30% m a lla r ely b io n , r r b aet o t 11.8% 30% a iv nd ire em f efen u fo nd tr 28% ,t ,see s t a he r B 4.4% e E ra am 24% ny dy p 2 lo p0 y o1 e o6 e le 25% . d B 6.0% eane ccfoitun 29% Re t s pe riarc 12.5% m26% ahr ily In s in tiv tu 24% es te t23.9% e (dE B in R 26% b I)ond and s. 41.4% 25% B the ala In nv ce e 26% s d f tmu en nt ds 26% are $10, OvR er o 000 a wll, perc lo w en a ens r tages e fin ro m tm h ay e 4 no ir0 t2 1 a( 0s dd k) t o opr 10 la 30s 0 ns perc t(eFi ent nd g bec u erde aus t11) o e b o.e f S ro sim unding. ma illl, ar lw y P,it erc 60 h ent a p age seiza rc se b are n le tdo o m f llar-w ap jo ar r eight it tiy ci p o ed an f> av 4 2–5 Y t0 erag s1 w (k ears es it)h .p ac arc tio cu ipnatnt bs a lin ana ce ll sa g gre e g at re or up th sa n Brady, Peter. 2010. “Measuring Retirement Resource Adequacy.” Journal of Pension Economics and Finance 9, no. 2 Hold Equity, bond, money, and/or balanced funds e Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. n, Of which: target-date funds Of which: lifecycle Sarah, K 24i0 m 50s be20s rly Bfunds an option urham12.2% , are an M7.7% ichaoption el Bo 15. g 5.0% 9% d0.8% an, and Da6.3% 1.7% nie 51,627 22,125 30,377 l Schrass 3.6% .17.6% 2016. “A 11,387,080 5,670,372 6,751,671 m 11.3% e23.8% ricans’ Vie 74.8% ws35.1% on $675,147,619,313 $195,439,653,365 $365,583,775,505 Defined y pe art ari-ce ip na d *n A 2014, t s1–100 s s etin s $20,000–$40,000 do n t h 59 e ot add t E pB e50s R ro t cI/ e hIC n e ttot I o al d f b at p eca a au rt c 45. sie of o cli2% lp $7,474 e ra c ou n tn ito di sn n wi g .et f 43.3% 24. h fo r t3% wo t. $20,772 or fewe 4.r1% years 13.3% o $53,700 f 13. ten 8% ure held 4. 4% ta $77,659 rget- 43.4% date funds $61,012 , compared with 60s 30% 60s38.5% 6.6% a a a a 8.3% 49.8% 10.4% 5.9% 6.9% 17.9% 28.8% 9.7% 2.1% 14.5% 0.5% 100% Figure Average Loan 26, Asset Allocatio 45 Balancesn ......................................................................................................... Distribution of 401(k) Participant Account Balance to >20–30 Y Equity 31 ears Funds, by Par ........................... 38 ticipant Age ...... 27   Th 80 e A pv ea rc ila ent ble a gaet o wfw 4w 01 .i( c 24% k i.)o r pg/ arpdf ticip /pe an Account Balance to Balanced Funds, by Age rt1 s7 ho -10. lding pdf no an d e q www. uity fe und 25% bri.so r ag/ lso pdf va /r br ieid e fw spdf ith /tE eB nu RIr_ eI— B_ p1 art 2-i2011_N cipants o w36 ith6_401 five o(r k)f- ewer O f tu hn a n at d c h ve a ar d la c b $60, u gleen e a,t p 000 ed u a ard tijsi c uin p st g t aent d f hse M ha r5 om o v t e rn h1 ie n n 0gst .4u d a m ris ber L tiinc fec o tf o y a cp lc e A ttiio vns le lopa cbaut rttio i,c o n ipa I n a nndt vex s a ere acs ( g tu ea s , c e lle y ho r M epo oo sren o ritn ed nl gy s it 2 n a t r .5 2015 h ( eH Foolb d r) m e . F n a 5o 5r nd 0 t0 h V f eia a linDe nvger s t a rhe o ge ex i 4 2c 0 0l1 u 0(d 1kb e: )). I pl (1 a n )n asset 22 b 30s EBRI focus Of which: target-date funds Of which: target-date funds Of which: target-date funds Of which: lifecycle Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. es solel 22% funds an option y on emplo 20% an option an option an option 22% yee benefits research — no lobb 12% 19% 19% 12% 19,653 21,468 27,216 29380 25% 12%22%>90%5,869,381 6,561,073 4,762,439 5,768,753 20% ying 21% or advocacy 20% $300,509,540,037 $312,226,670,331 $282,888,450,068 $222,212,047,139 .19% 18% e s (A o qp m uit re ip l a y w 20 a r fha und ti16 ctip . )sA a .. nt sim sRe is ilc ae e rxp nt pa ly etc thi teerrd n e d to o c 4 c b 0 u e 1r ( s p k ub a ) m plis <100 a orhe ng ticd ip p la a arnt tte ic s rip tahis a lsnt o s yt8622 e e in a nd rt.he no Th irte 0.19153 6 tav o 0 sho e ( rag F ld ig e a ur a hig e 19.1532 c c 1o h 9u )cn .otnc bal en an trc ae tio te n no dfs t h to e iir nc ac re cas ouen tw b ital h ances in A target-date fund typical60s ly rebalanc$55,502 es ita s portfo lio to be39.5% co me less focus 26% ed on growt12.6% h and mo re fo cused on inco m 47.9% e as it appro ac hes and passes the ComE pB an RIy E In mpl soye titu e B te ene (IC fiI) t Res co ea lle rcc h I t na st nitnua ute Il ss due B ata rio efn (m ISSN illio 0ns 88 20s 7 o -f13 47 0X 1 )( ik s )pu pbl la ish n ed m partont icip hla y by nts t he E as a m pl m oy eee B ans en to ef e it R xa es m ear ine ch ho Inst w it ut the e, se p S Bo & y T o Pa le J b 5a d ul Row percentages may not add to 100 percent because of rounding. Percentages are dollar-weighted averages. 0 c 0 a ak . 50 tcic o N % V o ns eunt a w o nDe f t Y s or inv he krindependent nonpr S :he e S s ur tte ia v,d n e E d yin o a Brf b R dC o I& t o;h ns P S soor um ta orce a ’k srs h . F a iH na nd ofit, nonpartisan o nc lbd e oe snd r n, esv . e IT a C he l It; ha y Lui a t a reb s o c la ut As h lso if ans ie lf o do fint ,t rE a odi B ttw R ioo I n ;a s lub a Ind RcA a a t eS sse gtoer tve ie s isn:n 2 ta 0 B r1g a 3e s rts esu -d , aIltC te ed f If und rom s and $100, having 00 no 0 w 101–500 loearn e o 22 in ut 0 60s ts hte aind 30s r 5ing 0s o ar t 6 a0 ll. 17.7% s 46. .F T o 7.4% 7% h r e e xpaom sip tile 22. v 7.1% e ,1.7% 6% 8 co 9r p re elrc ate io nn t 7. 9.7% 2.5% o b 2% fe tpw art eeic ni pag 12. an 5.4% 17.2% e 0% t san ind tac hec 5. i16.5% r o3% u 218.1% n 0ts ,b 7 al4an pc e 66.4% e rc ie sn 30.1% e t xopfe p ca te rt dic b ip ean cau tss e in (Ap Of which: target-date funds rilT): enur 23e 5(– y2 ear 62. s) are an option 14.6% 37% Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, All 15>$40,000–$60,000 %48.2% a 7.5% $16,502 7.9% 8.2% $35,602 4.2% 36,869 $79,786 10.6% a,b 10.6% 8,387,647 $113,504 2.1% $96,393 $504,871,562,432 0.7% 100% C o nt . 2015d ributio.n PP riv laa n te S a Pv eing nsi,o n 20P1la 5n .” B IC ulle I R tin ese Har isc to hr iR ce ap l o Trt ab . le Wsas ah nd in g Gtroan p,hs D C: 19 In 75v–e201 stm3e n (2013 t ComD pa an tay RIn elseta itse ut eV e (F rsi eb oru n ary 1.0)). . a 31bout half of participa Ant ll s with more than five 43.9% to 10 years of tenure 13.3% , and fewer than 30 p 42.8% ercent of participants with 40s Equities include equity funds, company stock, and the equity portion of balanced funds. “Funds” include mutual funds, 16% 15%46 16% 13% 13% 18% 16% 15% 16% 15% 13% 13% y Figure earU s b pda o51, f te t Loa e nur .pdf e n s From w ere m401(k ore lik)e Plans Tended ly not to be inv to Be estedSmall in eq......................................................................... uity funds (Figure 27). The percentage of participan ............... 45 ts holding Refer indiv110 idu ences 0 al13t s el ............................................................................................................................... h S igi EBRI tbl . N eW t,o S stand p uia te rt 8 ic s 78, ipalone in em a W te i ashi n ngt a 4 on, 01 D (pl k C)oyee , 2 Percentage of participants, pl 00 an 05 w ben -405 ho1 h efits , at ad n $3 rese 00 ot p el er ar ec ych ear ted or a ts o i s i h an nc avlinde 2014 u e >10–20 Y de th dei as pend r pa em ears re tp of n lo t, a m yer nonprofit, and no em s m ber ak sh e c ip o su n ........................... 47 bs tricr bu ipttiion. npa on s; P rtisan a er niod d ( i-2)   a addi l lo tT ac he Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, rget ta io t t in o d e ,n a t nd t t e h o o e e e fnc tpr h qu y e el o fiund, itm if t eis ( n he 11.8% wa htr ic h a y h rc a o is cu n o us gh a unt lually y si equ b s inc f alo ia t lud u y nc f n ed d t e u-n in to ds, h the a -sa t c 4 fu lo a n 0m r d1 y ’( s p r k nam aa )n pa tiyo e t st .r to o ic p cipa kea , n a kt n a s a d t t h rh e n ie gh e o er qu t n sa itayil po v ae ry — r ltte iha o vn el t o s is fa ,ba w nd t lhe an hn g c eed f n f iva eu ln ln o ds) nf fop l iby ktel ion p y r a s, t r ef tilc h ec ie pa y ts d n tto h a n ege ot, see total A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approac b b 100-500 6971 0.15486 15.4856 hes and passes the comp pa art ny ic s ip 501–1, to ac nk t ag (000 Fie g u an red s t42 enu an re d. 43) 47..9% 22.1% 8.5% 11.1% 5.2% 0–2 40s 7.9% 65.5% 2.5% 30% 3.5% 2.4% 7.1% 17.7% 33.7% 45.3%14.5% 10.7% no r poart lln o– ivc Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. ter iarg psa f n e rto ts-m da m em an te 20 ag pl ba 0All oe ly a er t nhc -e spo eid r 4 fnu 0 sn 1 ods ( red r k) . 13.2% A ac et tca io rr em u ge nen tts -d .t a T pl th 3.8% e a i s n f und s. re po p rt ur is s ue an 5.3% s u ap lo dat ng e 2007 - to efr 11.2% m EB in RI ve an std m IC ent 23.0% I’ ss torn ag te og in yg , us re 43.5% ing sea rac h mint ix o o f4 a 0s1s(ekt) plan and GICs and GICs and/or other stable value funds and/or other stable-value funds y the 60 oung ir Equity, bond, money, and/or balanced funds, 4e 020 rs ,w % a ond rk >$60,000–$80,000 e 8 rs 7 a pre er clik ent ely o tfo p ha artv ic eip lo a $33,469 w ntesr in inc the om ire s 6 0 asnd $60,504 h atd o no ha21,092 24,024 vlo e aha nsd o $123,554 le utssst a tim nde ing to aat 5,916,952 6,629,570 c y c $174,016 e ua m r-ula entde 2014 a bala (Fi $151,791 n$229,842,664,062 $378,940,206,085 cgeu r w eit 51) h the . ir current 50s b b b b 12% 11% 12% 10% 10% 13% 12% 11% 11% 11% 9.5% 10% 9% Figure c A W cal va s p a 27, sila h os ing Asset Allocatio b ta le ge t o an, rta bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the tw e D w pai Cw :d i .U in c.iS W .o n .a r D D sh g/ e iin pdf stribution p gt ao r/ n, tppr m De Cnt _ , 1 and of 6 o_ f a 4 dc Lddi a 01(k _ bpl to iora nal ,)n E Partici _ m m sai apv lilo ng iny p o g. e a fe fpdf n ice t Account F Bse i. gur P ne OfS it e 2 T sM S Bal Ae Sc Tu E ance to rR it:y S 2014 EBRI/ICI end Adm Equity ad ini drs es trs c a Fu tha ionds, n nge (S s t eby Par o: p tE eB m Rb It Ie icipant ss r) ue B . Av ri Age, a efila , 11 ble 00 at more than 30 yearsor of ganization committed tenure (Figure 33). exclusively to data Noa t all par 40% ticipant orga s are nization. offered thIt analyzes a is investment o ptind o n. S rep ee Fo igur rts e re 22.search data without spin or underlying agenda. All findings, and GICs and GICs and GICs and GICs 1001–5, and/or other stable value funds and/or other stable value funds and/or other stable value funds and/or other stable value funds 000Age Group 47.6% >0–50 percent 21.7% 9.6% >50–90 percent 10.3% 5.2% >90 percent no Co p ey q target date of the fund, which is usually included in the fund’s name. right Inf uit$50, y fund 000sormation: tends to fa T ll his as re sala port is ry inc c re oa pyright ses. ed by the Emp 22,334 24,182 22,404 21,768loyee Benefit Resear 6,524,313 4,988,736 5,759,232 6,125,588 ch Institute (EBRI) $333,096,281,024 $250,001,456,068 $338,032,949,859 $343,171,066,072 and by the di F n inio gu v fn liu de v r en est e 2 A lifecycle fund typically rebalances to an increasingly conservative portfolio as it approaches and passes the target date of tch e o e 1 ei d f . rf t o >2–5 ar s w m set oer c s em oa m m pet pl on oig y ne g aes f ll o nw r.c I h es. n o h dee Faird n d, s Percentage of Account Balance Invested in Balanced Funds t l , em o es 61.9% t ( s t a pi th rtia 6c hn a e t 1 l r ies m per e t ea cren h ce F ht o so u f3.3% r pa gg m 5 ers t5 itcs 0 i t pa 0ha fn ilt tin s hi f gs o g w l >5–10 Y he loer w r e ed e su 20.4% aears ra ne 1 bm r/sn i t t te aed) nd sse the fund, which is usually included in the t itn o a c c lu lo o rnt c red art14.4% ii t b out n h st ee br raea tek gy -i.n P ser lanv ice 100 b Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. plan as 50s sets a a 9.0% 501-1000 3.9% 3481 5.3% 0.07733 22.2%7.73281 32.8% 26.8% U.S. Departmen18 t 0of Labor, B7.4% ureau of Labor Statistics. 2012. N $45,519 at40s ional Compensation Survey: Employee Benefits in 13th St. NW, Suitqq e 878, Washingty on, DC, , 200p05y-4051,. Copyrightq 20yp16 by Employee Benefit Research Institute. All, rights reserved. No. 423. B Endnotes part radi60s c yi,p P ae n ...................................................................................................................... tte sr, ’ a an ctid vi tM y ic th hro aeu 10% l g Bho g yd ean ar9% -.e 2 n0 d1 2014. 0.10% “A L o To he k8% at re p Po ri11. rvta 2% 8% is te d -S iv eid cte 11% od r int Reo ti re f10% om ure n se t cPtlio 9% an n sIn : tche om 9% fe ir ...................................... 52 s Atf tdeer 9% sE cr Rib IS eA s .t” 8% he In v Ee BsRI tm 8% /IeC nIt   cla ds and GICs se c s, Of which: lifecycle Of which: target-date funds or as>$80,000–$100,000 s and/or other stable value funds etsecurity indicated. alloc20s ation, funds an option that the are an option $53,871 fund pro36.3% vider a$97,019 djusts to 17,961 15,345 19,200 becom 14.7% $186,584 e less focuse4,308,328 4,734,948 5,896,114 d $258,153 on gr49.0% owth and $223,638 m $166,837,778,808 $272,426,390,762 $405,545,092,819 ore focused on employer. In addition, they are less likely to have rollovers from a previous employer’s plan in their current plan Year-End 2014 Sn aapsha a aot of 401(k) Participants’ Asset Allocation Y Appe ea GIC fund’s name. ndi r GICs are guaranteed investment contracts. s- ar E x Fig Tenur e n guara >5, du 000 2014 S re nt e, or eed A1, inv Salary Average Asset Alloc estm n ent a ............................................................................................................. p cos D nth ra ist ot c48. tsr . of 2% ibu 401( tia o tion of 401(k) n20. ok 5% f )401( Park) ti Plan ci 7. P8% lp an a Accoun n s, t P s’ar A 11. tt s ccou 3% i, by P cipan n art 5. t ts, B 6% icip 0– a an 2 Y ant Ag la ears dn A ce sset e ................................ s s ....................... 28 57 w w .w 2.0 do 12 lwheth ..go “4 v0 /1 ee bs (k r )a on fi / Ppdf lan nan /h Ais ss cial te otr ic Adata, a llo lt 5.2% a cbl ate io option sn, .pdf Ac s c, ount or tre Ba nds, lance are reve s, and Laling oan Aan ctiv d itreli y in able 2011 — the re .” ICI Re aso sear n cEBRI informatio h Perspective n is 23 >5–10 52.5% 5.0% 25.8% 16.7% Age Of which: target-date funds Of which: target-date funds Of which: lifecycle Of which: target-date funds collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security indic funds an option an option an option an option 17,051 16,929 15,854 17,204 3,779,908 4,059,968 4,628,245 4,421,866 $221,689,982,920 $248,911,291,062 $201,269,691,433 $239,662,677,661 ate Investment Co • The ave31% ra mpany I g b e 40 30s 60s 1n (k stitut ) pla e (I n a CI). c 12.1% c It may ount b be a 40.9% la 5.5% use nced te with nds out permission but citatio 13.8% to incr12.6% ea30.5% se with pa16.0% rtic n ip of the a 46.5% nt a source 22.1% ge an id s requ tenu ired. re. F or perio d established by their plan (see a U.S. Depart4.0% ment of Labor, Employee Benefits Security Administrati10.1% on 2012a for further S h40 po i gh At n er y so ea per r C r-o c een u n 100 n dtc 2014, a ilge o 16 Plan As fs o 0 Ame 11 1. dissemination, r f sa 6ri lp c a sa er rets y 20 c ; t en -15 h -ter o ief n f t di oh rce e, atpa o e 1001- s t n esear re tih w ca ipa to 500 iu n ch, and education on nlt d ex 2 s0 i 0n 1 t pec 4h , t e d th 9054 e th aa e r ta vba er ata s io g 0.20113 e w o e n fer a uc m e m cb oer u iss n o t20.1128 i ba n f i g nla a v est nbi ce t rm then o da sta f te lu a en n ry d o t tr oy pt r , w iise on er w se a itv y ho a s iu la a nlbl ger are f y. t H oh ra on w 2 ev 0er , o , r Tenure (y P b riv 10 at % e ears Ind ) us Participants try in the include the 23.4 million 401(k) plan participants in the year-end 2010 EBRI/ICI 401(k) database. United States, March 2012. Washington, DC: U >2–5 Y .S. D ears epartment of Labor, Bureau of Labor e 30% AT A G 3.2% L AN CE Com Of which: target-date funds pan Ally Institute Research P are an option 47. ers 4% pec $39,885 tive 21. 168% , no. 2 (Nov 7.8% ember). A 11. va4% ilable at 5. w 3% ww.ici.org/pdf/per16-02.pdf 4 in0c1 o Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, (m k) GICs are guaranteed investment contracts. e doat ve ab r >$100,000 as tim ee ; .th eN s on ec–otn ad rg p ere t-d sa etne $44,513 t sb a ala sn nc ap ed sh fo und t o$154,587 fs p inc art lud icip e 13,634 an ast2.6% s ac et c $325,054 aollo un cta t bio aln an oc re h 4,068,419 sy a $434,733 btr id ye far und -en sd , in 2014; ad $382,531 $285,268,935,925 dit tio he n 9.4% tth oi rlif d elo stoykle s at H 40o ld Equit e Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product n, ies S inc ara luh, de equit a b ndy D fu40s a nd P nie ser , cl ocS m ec p nt hr any a age s sts o. c of 2 k,0 and p 1l5 an t.h “ e s D equit , p e 40.1% fa ine yr po tid c r tiio pa Co n nt o nt f ba r si,b l aa ut nc nio ed d as n f uP nl d s 12.9% an se .t s P by ar 2.2% t ic nu ipm anb ts e’r of Act pl ivia t 47.0% in es p primarily invested in , ar 20 ti1 c4 ip .”a IC nts I ,R 2 e01 se4 arch Report ac Dic so tu rn ib ts u . ti>10–20 o 10n the % ofgold sta 401(k) n P dard artifo cir pa priva n41.6% ts te ’ C analysts a ompany S nd toc de 6.6% k cisi 9. A 3% on lloc make ation rs, s gove 32.2% 1.9% rnment policym19.6% akers, the media, and 30s 9.2% 1.7% At Asy se e 1a t 8r A , -e nllo n o. d c 9 2014, a , t aio n Participants include the 21.8 million 401(k) plan participants in the year-end 2007 EBRI/ICI 401(k) database. d n o 43 EB fR p 4 I er 0 Is c1 e sn ( uk) te oB P fri 4 la e0f1 ,n (n P ko).a p 3 rla t 8ic n 0 ip ( pD aa e rtn cic e tip m s a b W n e btr) ist’.ho a Acv u cai o tunt l E ab qu l e b a iat tla y n w Fu cw ew sn .w ds ice i.r o e r g/ inv pdf es/ te pe d rin 18e -09. quit pyd ff und ands , on average, Group See endn Zero ote 36.1–10% $37,323 All >10–20% 8.7% >20–30% 2.9% >30–40% 4.9% >40–50% >50–60% 12.7% >60–70% 24.4% >70–80% 46.4% >80–90% >90–100% Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, c 0–2 c $40,000 140 27% 24% 27% S&P 500 23% 21% 25% 22% 19% 21% 22% 17% 16% Yea er x- am En pl100 d e Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. , 2014 S atNote: Row percentages may not add to 100 percent because of rounding. Par year tic - 50s e ipants nn d a 201 p --s 4h , p ot ar of ticip > 401( 5000 ants 38.1% in k the ) Pl ir 316888 a 0s n w L itoa h m 0.37516 n o A re 13.0% tct hain vtiw t 37.5156 y o t o five year 48.8% s of t 8.4 e% nure had an average pa F w det taact er x c ra te o iic o lo ) id p .12 lr T e d as c n er h Pl T to i c t s c an n h h o ts W a a r n hib n t t ar A 6 n u iibu th g t9 io ff e i GI .t T n e io n lim C c h n m s t ey s w 4 37% /it et S w s 0 ta h a a er s 1 o bl n d 19 ( e ed o k - n V n l ) o a a o P o gy lm t ue n iar o r d n Funds n is c eg t t lsu c u irci ded im lh ts p e in ian i n n a n e t t a a io t dr r h s’ n liys r A 600 au a m cco n le a ast l,ip y c w u si l i as. n n ns hc ic t r B h ea sur a al sim v e i e an t y ne o t ce d h e . e n n s De s uu lr om eit t ber te h aC o to e fns i m n ul p di lto ivn y idu g e es o LaLls r P,f epo I ant ll ier nrtc na ed om t a io e r sna aalc n tFg iv oes e und a pata r tt taiio icn in pa to hn f e ts Row percentages may not add up to 100 percent because of rounding. Percentages are dollar-weighted averages. NoS teta : “ti Fs unds tics ”. inc Av lua de ila mb ulte ual aft unds ww , ba w. nk bl cs. og llec ov tiv /n e c trs/ use tsb , lif s/ e b ins en ura efnc its e /s2 epar 012 at/e eac bb cl o0 un 05 t8. s0 , 1% and . 0–2 Y pdany f ears poo led investment18% product primarily invested in and company stock and company stock Equity, bond, money, and/or balanced funds, the security indicated. >20–30 401(k) Plan Assets 36.2% 20s 8.3% 698 544 8% 8.35.7% 0% 3,988,551 3,493,963 19.8% $195,334,039,667 $229,750,055,920 participants’ a asset allocations, including analysis of 401(k)16% plan part 7.9% icipants’ use of target date, or lifecycle, funds; and f Figure U Appe und .S. (sG ndi A .ov p 28, r x Fig il C e)r Per om .n A m u the v p e c re an a entage of 401(k ila Note: Row percentages may not add to 100 percent because of rounding. tn A2, publi b A yle c s economic security and employee benefits c Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. Distribution of 401( t o a c oc unt t. w ka w is bw ile .itiq c y) Pl uit i .O oy rfan g/ f iin cpdf eParti t . he 1 /9 ppr k) Plans, Par 9 c pipants 7 la _ .n’ 1 “4 s 4 _ 0 sr1 p With e(o c kn _ )s sP o o u tie ru rcipants v ns t Equ (e the io y.n pdf e iP ty Fund Balan m la and A p ns lo:y e L. s r o) sets, by Inve a . n MPo rces ne oviy sWh io fun ns o Have Equity stmen d Enha s con ns tc Opti e is P t a o ons ...................... rft Exposure, itcho ipa se tio fund n bby ut s d M ea sy ig ne 60 d Account balances are participant account balances held in 401(k) plans at the participants’ current employers and are net of pl 60s 36.4% 12.8% 50.8% an loans. Retirement savings 7.4% 20s >2–5 20 32.0% % 2.0% 24% 1.9%25% 1.7% 7% 25% 21% 1.3% 22% 1.4%26% 1.7% 23% 20% 1.1% 21%1.2%21% 1.1% 19% 18% 54.7% Report availability: c20 om and company stock and company stock and company stock and company stock p waw re w d. ew br itih .o 4 rg/ 4 pdf perc This r /br enie t fat se pdf port is ye/ar EB -e R availa n I_ dI 2013, B_1 ble on th 2- 2012 37 pe _N e I rco en 380. ntte rnet at4 y 0e 591 565 626 644 1k at ar--e www eonyd 2011. 2008, .ebrip .org d a f n an d 48 2,776,741 3,357,767 3,332,778 3,223,670 d a pte Bar ww rcce lay n w.ici.or t s Capit at ye ag l a r- $225,827,360,732 $192,188,040,515 $207,379,938,703 $214,577,115,186 end 2007 Participa0% nt1–100 s’ allo 12 ca 0 tions to company 47. 5% stock rem 17. aine 9%d in line8. w 5% ith recent6. p 3% revious 2. y 11% e 0% ars. Thirt14. y 11% -t4% hree perc 11% ent (or the security indicated. Fo a r revis aio ns to thes a e data fo r 2007–2013, see Figure A 1 in the appendix. 6% 2013 F 6% orm 5500 401(k) 100 plan Par acctoic uipants nt balan -- ce of close to $25,000, compared with an average 401(k) plan account bal 60s ance of nearly P ina 4 rt0 ic 1ip (ka )n ptla s>30 held in plans at previous employers or rolled over into IRAs are not included. n w sit ; in h no 20 0 eA4 q ll,uit thye n fuu nd m bbea rla onc f a 38.9% e cs tiv m ea p 38.8% ya r sttic ill iphaa nvte s in exp c9.9% re oassur ed e t t 13.3% o o 5 t3 he .1 m sto illio ck34.8% nm (a nrekw e tm thr e 47.9% th oo ug d)h frco om 16.4% m 4 pa 4n .4y m stillio ock n ( oo r ld • 41 E ben m pl ef S o iinc t y s o e . e B e 2014. f t 1en h 9e 4 9ef 6 “ i0 tA t P he 1 L (lk a o ) E n o Equities include equity funds, company stock, and the equity portion of balanced funds. “Funds” include mutual funds, bank coll m s, pl k a a p an lo tn ,d t P c yr e o ih e v ne I a st B te e rn a -ne tS ier ne t fn c ith t a o e a Re tir oR s n bi e a e la iltt S iry re c o oh m cfi h I et e nn iy s gh t o t itP -fut i C ln ac e n er o (m In tE ife i B ic ed o RI n m E di ) e m v a ind A du plfo t a e y tlhe r ee s t E B o R I s nv IS en aA e v ef s e i .” itt m S n IC e pec tI nt he R iC e a ps lo lia e st m n ar s. ective trusts, life p S 2 c ah 0 ee ny 1P H 5 e I r n rs oe s lp den po tie tu c rtt t t ia e vh n e( a d V IC t20, tI) a h 13 n e n h D a o av er v . er e h 7 e aige and company stock Of which: lifecycle Of which: target-date funds funds an option are an option The Employee Benefit Re Figur sea 1,073 e 38 514 443 rch Institute (EBRI) w 4,841,913 2,484,549 2,837,928 as founded in 1978. $362,256,152,200 $133,050,275,659 $173,978,568,774 Its mission is to Account balance and tenure are also positively correlated am 1%ong participants in the 2014 database. A participant’s a a a a U.S. Aggregate t t In he o Fm an of> rai o 5–10 y y ur n ea g ttai iParticipa h v re n -fen n oa cd 2 yus setar, ab e 0s n 1l t A 3 e o th da n se g h p e or tare ca ahr , 23% an tse ic p Tenure, g ie rpiec a H e nt io n . l 21% s den S a ’ ta 4 p 2014 0 et art b 1le ( a ik c-) 23% li............................................................................................... v .p lo a an 2014. lau tn ’e sa pr a c 19% c tic o vo it du uyn .c t tb 18% sal , s an uc ch e 24% a in 30s s tg he uar dan 20% atab tee ad se in 19% iv s ets hte m s eu 20% nm t co of 32 n tth r18% ac ree ts f(ac Gt ICs 17% ors ................ 28 ): an16% d other A 24vaA ila ffe bcili t In tyc a om nd e U Sesce u o ritf y 4 fo 0 r 1 S(ok) m P e.”la Ln L etteo r a Rn es p b ory t, P Gla AO n S /HEHS ize - 98-5 (October). Washington, DC: U.S. Governm4% ent Figures 30s 37.8% 101–500 b 4.0% insurance separate accounts, and any pooled investment product primarily invested in the security indicated. 3.4% 46.0% 3.0% 17.3% 2.1% 8.4% 1.9% 20087.1.9% 5% 1.1.5% 5% 14. 1.7% 5% 1.9% 41.0% Of which: lifecycle Of which: target-date funds Of which: target-date funds Of which: target-date funds 100 funds an option an option an option an option 470 431 480 465 1,971,881 1,940,936 2,657,116 2,478,555 $155,719,177,317 $127,549,003,835 $137,410,985,176 $150,996,996,797 (Figure 20). Longer-tenured participants are used in this analysis to capture the longest possible work and savings history Altogether, equity securities—equity funds, the equity portion of b (see note a). alanced The tenure variable funds, and company stock— At year- Salar end 2014, y 10.3 percent o a f the participants in the database were missing a date of 40s hire endtry and were not included 8.1 millio $30, n) 000 of the 401(k) participants in the 2014 E Appendix Figure A1 BRI/ICI 401(k) database were in plans that offered co2% mpany stock . 2013. 100 NPlans ationa-l -Compensatcio ont n ri s Sbut um urvee ty 60s o:, t Eo e mp Appendix Figure A1 nc loyoura 45016 ee g Be 8% e, a nenfd t its o e in nha thenc Uenit the ed de Stve atleopm s,Bond I M en atr of s ndex ch 20 ound e 13. Wm apl shoiy neget be on 24, neDfiCt : balan $c 2e 7d 5 ,f0 und 00 s a,m w ohic ng bh pinc artliud cipe a n ta ts r gin ett -he dat ire 6 f0 us n d wsit . h Inm fo arce t, t8 h3 a n pe 3r0c e ynt ea rosf o 4f0 4 t 1e(n ku ) rp ea . rticipants with no equity fund n m 20 uet 0 m 1 hber (c o O f d; c o o Of which: target-date funds t se ro 10 a fb f % e c e ur n o U )d m . .S s o A pl . D v et fai fepa er e 14 lab di ed rsc lte m by uat en s t si h w to e n o n w f o L w efa .a E i are an option bo c rlB iy .R o r 4 ,r I E g/ 0 /I0 m C pdf 4 I pl f 0o i/ 1 n y pe (di e ke B ) n r pl 2 gs 0 en a a -n 07. ef n spo d o itps S dtnfhso ec erru r s re isu tse y A ra vre dm cyhe o id w nn ist ta rh a s 2 e ti r o2 el n i 2 a nt0 2 io 10 n 5d 1 sh 5 ). A i.p B bet rsi t gh h wteeen S U co .S c pe . D o a ne tnrp d ibu a I rn ttm iv oe e nst n rtm a of ten e L s ta ab nor d Appe Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, > w ndi 10–20 ork x Fig ed tu ore getA3, her Age Group Asset A Participants include the 24.9 million 401(k) plan participants in the year-end 2014 EBRI/ICI 401(k) database. on 15% collellocati ctin14% g on to and ana 16% Equities Varied >0–50 percent lyzing 13% annual 13% Wi data dely Amon 760 on >50–90 percent 17% millions g 401(k) Plan 16% of 401(3,935,742 k 14% ) pla n >90 percent Participan p 15% articipa14% tnst ......................... $280,237,818,286 s’ acco 12% unts. T12% his 67 Holden, Sartends to be years with the current employer rather than years of participation in the 401(k) plan. One reason that job tenure m ah, and Jack VanDerhei. 2001a. “401(k) Plan Asset Allocation, Account Bala ay not reflect length nces, and Loan Activity in 1999.” tenur 0 e with 501–1, an e000 mployer servesM aa s 44. ny a6% p R roe xy c e font 18. r tly 0% he H Appendix Figure A1 le ir ng ed 4 th 10. o0 f 1% 1 ti(m ke ) P a a wro t 7. rk ic 0% e ipa r hnt as s p1. H a4% rtold icipated 14. in 1% the 401(k) plan. EBRI explores the breadth of employee benefits and related issues. 50s s t ab l A e c - c v .o a2013. unt lue a 5% fb und ilit “401( y s ,Ok f fare )i cP ela .re n Ap vA o asr ila s te ebd tle A as llo a to cw n at e w io w cn, at .g e A ag c oo c .g r oy o unt .v T /a hB rec a h lo a it v nc h e/1 er es998/h ,c a and teg e L o980 o ry a n is 05. A tc he p tiv d fr it ey s id in u2 a0 l 1 fo 2r. ”o IC the I rR inv eseear stcm he P ne ts rs , pse uccth iva es 40s 42.2% $20,000–$40,000 80 5.3% 4.3% 64.4% 3.8% 2.5% Appendix Figure A3 4.2% 2.2% 2.0% 20.2% 1.5% 1.7% 11.1% 1.8% 32.7% Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, Who we are 20s Average Asset Allocation of 401(k) Plan Accounts, by Participant Age 26.1% 11.8% 1.7% 62.2% r Fi in eft t ph y re - is fo se au n nra t e lp yd e si of participation in the 401(k) plan, particularly among older participants, is that the proposed regulations for 401(k) plans w r6 s. c6 e n pte o rc f e Note: Row percentages may not add to 100 percent because of rounding. For revisions to these data for 2007–2013, see Figure A3 tn he t o4 Average Asset Allocation of 401(k) Plan Accounts, by Participant Age f0 4 10 (1 kb b) ( kp )la p progra ns lan f o pr m ar w st a ihic cnd s iph an o lo und publ ts a’n as ds a F e tia t gur is c w pol at e e ry i22 e ce ya a tv rhrough o -aeiln ad b le 2014 in bjetche ( tiFi ve g 2 re u 0r1 se e 4 a 21) ere not introduced rE cB h a R . I/ ndI in the appendix. e CI duc 40 at1 ion. (k) E dBR atab I ias s the e o onl ffeyre d a 42 Figure 1, 401(k) s an invest 100 ment Plans Plan optio C -n -harac (Figur teristics, e 22). A by Number mong thes e of Plan particiParticipants, 2014 pants, 76 percent ................................................... held 20 percent or less of their ac 1.c 9% ............ 9 ount 11% > U 20–30 .S. D1, ep 001–5, artm000 ent of L 11% abor, B10% u44. reau 2% of 11% Lab18. or 4% S9% tat Appendix Figure A3 istics. 8% 8. A8% vailab 12% le at7. 8% 11% 1. 9% 5% a 10%13.6% 9% 8% 8% a nllo otes: c and company stock, and GICs Equity, bond, money, and/or balanced funds, and company stock, and GICs at “ io In n a ha pu d rinv elye ec stm oneont msic in sen eit and/or and/or se he arnd co fo mrp raeny se a srtcoh p ck ur orp b os ae la snc , ind edi vfiund dualss a in t t yhe easre -e gnrd o up 2014 s sho (Fi ulg du no ret b 28) e i . nc Fo lud r e ex da im n t phe le, c ount C sal o S m ar ee p ry. e • an en F po N y I odn rre t n w an o rse ttc an e 3 fitlo e unt c t6 a e tl.rs Le 2 ys ib t0 ss Tha The Institute seeks to advance the public’ iut h s1 o e5 io r fyn 4 e e Average Asset Allocation of 401(k) Plan Accounts, by Participant Age n sa 0 p $ r b 1 o10, -( y re tk) s n t 000 an he b b b b p d ar 2014 av pta icr er itpic a an uip ge ptd a s o a nt ’ c tfe 2 ,o n t7 o he t i fr in tb he v e uest m tis > o p e $40,000–$50 m n lo ac d en y aett tr a i o vi , a pt o ty nd ri d ob n ,00 u o E s i rtB ih n 0RI n; g 2 t 's0 h s 1 e a,3 b nd , a e ar InC d m I a 'sar n o k a ng e vter o oing M a f 2 ge o or 0 er Th 0 ef 0 s 2 t e an 1 a o i r 2 $10 15 c n0 h v0 0,0 est int 2,00 s m o e en 4 e0 H t1 o ( ok pt ld )ie o p n n la s an n w dh en Figure Inv29, est Average Asset 10 me 0 o nt rCo fem wer p 30s any All Ino scation for titute 1 0 P1 e to rs N 401(k um p 50 ec ber t0 iv 33.5% ) Pl e of P 7an , lan no. Parti 15 (cip 0 Ja 1n ants to ua 1,0 ryWitho ), 0 13.3% a 0nd u t Equ EBRI i1 ty Fund Balan Is ,001 sue to 5 Brief,, 53.2% 00 no 0 ces, by . 230 ( F Participa ebru > a5,0 ryn ).0 t A 0 Avgai e or lable Indeed, 61 pe EBRI rcent studie of part si c the worl ipants w d itof health and retirement ben h baccount balances of less than efit $s 1 a0 — issue ,000 had s such a five or s fe 40 we1(k)s, r yearsIRAs, retire of tenure, w ment hile This paper is >$40,000–$60,000 until 1981. an annual Asset Allocation to Equities Varied Widely Among 401(k) Plan Participants update to ICI High C an 53.2% d EBRI’s o oncentrn agoi tions ng re 5.9% in T search int argeto -D 40 a1(k te27.0% Funds ) plan partici b,c pants’ a 13.9% ctivity. The previous re 50s al and company stock, and GICs and company stock, and GICs and company stock, and GICs and company stock, and GICs estat45.4% e funds. T 5.7% he final c4.5% ate and/or and/or and/or and/or gory, u4.0% nknown, 47 2.7% consists of 2.4% assets tha2.0% t could not1.5% be identifie 1.6% d. 1.7% 28.6% 19, no 0% . 12, and EBRI Issue Bripri ef,va nto e,. nonprof Percentage of account balances, 2008 394 (De it,c nonpa emberrt) is.a A n,v W ailaasb hile ngt aon, t w D wC w-.ba icis.eod orga rg/pdf ni/zpe atiron c 19-om 12.m pid ttfe an d ed xc lusively to Percentage of account balances, 18% 4.1% 2011 Equit19 y F 98 unds 1999 2000 Compa 20 b 01 ny S 20 toc 02 k 2003 Bal 20 a04 nced F 20und 05 s 2006 2007 Bond20 Fund 08 s 2009 20G 10 ICs 20and 11 O 20 ther 12 4.20 2% 13 Mo 20ney 14 Funds >30 >5,000 40s 7% 8% 45.3% 10% 33.9% 18.8% 8% 7% 7.1% 9% 13.5%8.3% a 9% 1. 7% 8% 52.6% 7%12.4% 7% 6% 6% a plan lo$20, an p 000 Dist rovisrib ion utto io p na o rtAsset Allocation to Equities Varies Widely Among Participants f ic 401( ip antk) s ( Plan Figurs, Part e 44). icip The an lo tan s, an feat du A re sset was s, b moy re In cv oest mmmen only tas Osp otcio iat nes, 2014 d with large plans (as b Ba rad lan yc , ePse in ter, co Ki mm pa bny erl y s tB ou ck rh , a inc m,lud aning d S 5 a6 rah P p are tH ircco ie pant ld nt e n w s. ho 20 1 he 2.ld T no hene Su (cF cig esur s e o f3 t4h)e . O Un .St.he Re o titrhe em r eha ntnd Sy , s8 te p m e rc (D ee nc t ehm ad b em r)o . re Appe and company stock, and GICs w ndi ww x Fig .bls.ugre ovA4, /nc s/ Asset A ebs/bellocati ne and/or fits/on Distr 201A 3/b eb o ibution of 401 bu l0t0 5 t2 h.p ed fE BR (k) Participan I/ ICI Dat t ab Account B ase alance to Balanced Funds, 89 p other stable-value funds other stable value funds ercent of participants in their 20s witho Percentage of account balances, ut equity funds he 942 818 ld equities 2013 through 7,043,568 5,217,610 company stock, b $424,558,594,204 $457,059,678,540 alanced funds, or a o V t fa a n ar D cget te iv re h d pa eia 2004c tre >$60,000–$80,000 t f iincom cu ipa nd su . F nto s. e r 0–2 i” t s H ade e uio m sw c m qev o uacy, a urer n yt s ,ed t th aco t e f ais snsu a t> o ic 2–5 r s m si o 45.2% m n sc n gl er-drive c h e i o edu n nt vre lie n b st u n m tee Appendix Figure A3 ib o en >n enefits, 5–10 ded a t o c p ttito vi6.7% o i m tn ySocia .a i n k 2014, e thl e >Security, a 10–20 s dj eu est Um tken u 31.9% tax treatment of both retireme st a is n nd Y o > l 20–30 oou nn ger g 2015 a requi16.2% rn ed d. A U o >3 si n0 H nge N wa it nt tti 201 oand health nal 5. 25 partiTenur cipant e ........................................................................................................................ s’ activity. Asset allocation distribution of 401(k) participant account balances b ........................... 29 U.S. at In t w ew rnw al. ic Ri.eovre g/ nu pdf e 50s S /pe erv r0 ic7 e-.01. 19p 8publ d 1f. an “iN c pol d o tw icw iec 32.8% y w o r f.Num ee Pbr sro ea i.prc ber oo rh s g/ e of apdf dnd R Plan /u ebr du lei c e M afPar ts ak ipdf on on 13.5% in tic / g0 ipants , 2Ce 0 ec1on rt ib. ai om pdf n iCas c S s tabl ehc e- uri oV r taly 53.6% D u e e F afnd e e urre ndsm dpl Aorryan ee b geem neefint i tss sUue ns d. er 73 60s percen 46.9% t of p Sources: Bloomberg, Barclay arti5.4% cipants wi4.1% th ac s Gc lobal Inv ount3.8% estor bal s, Frank R ances ussell C g 2.6% reaompany ter th , and Standard & Poor' an 2.3% $100,000 2.0% sh . ad more 1.4% than 10 y1.5% ears of ten1.6% ure (Figure 28.3% updat other stable value funds other stable value funds other stable value funds other stable value funds e was “ All 401(k) Plan Asset Allocatio Non-Target-date 45.2% n, Account Ba 18.4% lances, 8.1% 950 925 857 890 and GICs Loan Activity /Stable- 7.8% in 20 1. 6,878,491 5,825,758 5,780,776 6,254,419 7%13,” publishe 13.3% d i $555,395,167,782 $456,059,107,209 $470,098,152,981 $470,393,829,973 n December 2014. C 43h T A a h cw n e po cAge Equity ount g wes wsi S . i e t iz in br v e A e c i.o so rsr g/ et rel pdf the media’ A atil/ o lbr o nLifecycle c b ie a et ftsiw pdf oe nen B /E s and policymaker t et BNon-lifecycle en Rw Iu _ P een rIer eB a _ cn ent 0 Yea d a 12 age of -c13. r c- oBond E u N n n r o td ec ba 39 20 ent 4. s’ knowledge laMoney 401 13 an n ly c hi e i k rs e - ed 401( U dpda x Y pec etar e tk ed -)- 2012. par En bec d tia c 2 p iu pant d 0 se f Company 14 l o s ng -term employees have had more time Figure 2, Distribution Source: Tabulations from of 401(k) a EBRI/IC Plans, I a Participant-D Part irect icipants, a ed Retirement Plan nd DAssets............................................................... ata Collection Project. ................... 9 Asset allocation distribution of 401(k) participant account balance m e Sa ee su en red dn b oy t e 3 ta he 6 .num 60s ber of participants in the 32.1% a plan). A Siz bo e of ut Ac 9 c0 ount pe Balanc r 12.8% cent e of plansb with mo 55.1% re than 1,000 participants than W 8a 0 Of which: lifecycle Of which: target-date funds s p he ing rc >$80,000–$100,000 e to nn, t o D f C th : eIin r vac e funds an option scto m ue nn t tNon-Target-Date b are an option Co alam np c 39.6% e an s y in In vessttie tu dt Si e in . z eA c of o vm ai Account lp ab 7.4% an le y at s Bal t ow ance ck w.w .ici.org/ 35.6% pdf/ppr_12_succes 17.4% s_retirement.pdf other stable value funds • Tby Ag otal in e ........................................................................................................................ vestment return on accoun 1–25 Asset Allocation to Equities Varied t balances, w Inv hic esh tmd ent 729 776 623 ep Ce atnd egor s c,d yon the perf5,574,912 4,296,253 3,444,527 ormance of financ$324,730,589,566 $469,513,431,701 $302,712,876,492 ial ma .................. 70 rkets and on 25 benefits, All indexes are set to 100 in D cost a manage a a a aecember 2002. ment, worker and employer attitudes, policy reform proposals, and pension c assets b Cot o Tm h he pen . IEnB sa dR etI/ e io N d In ote: Av CI , S 7u 4 Pr erage and median a v p rt ey eirc d cip eaa nt tn a t a o -f Di n 401(k) p d h ra erc itst t loan amounts ie co ip d E to equities, r iBRI’s a R cnt a elt r sir ein e are m la m t calculat e tie he o m n n be by age, percentage of participants, tir sh P ed r2 s ilps hi a among participants 0n s p i a w Da n nc d itt l t h ude aro en C ut so ds a le lw c e q e ith c ros uit v t 401(k) loans at iio d s yn -en sf eund P tcr i to in on of pe j t s b, e c h yche ear-end. t e F ild so tns rth m ae i 2011 ron funds 5 gla e 5rt0 g -0 d e da a stt;e , bus t m a fund , E o ine sB t s R sr— sIe e a p sw ;n r t hic e d I ra se de h C nI a tt e a e stnd s st ioc vie m it ao a ti tons b e t e h ; e Investment Options Offered by Plan a Plans Participant b s Assets D All ist< Em r $10, ibp u 000 l41.4% o tye ion e o Equity Plf a P n4.7% sl.an ” F Target-date s, eFunds d 39% P era a 3.8% r l tR ici e39% gp isa t Balanced e nrt 3.4% s, 46, 37% an no d . A 217 35% sse Bond 2.3% (N ts o v S b e a Money 36% y la m P ry b Ra 2.1% e la r n S n 10) GICs g 39% e iz : 55 e /Stable- 5 1.9% 44 39% –55549. Company 35% 1.4% 37%1.6%38% 1.7% 41% Total42% 35.9% 12). Group E Of which: target-date funds Of which: target-date funds Of which: target-date funds Of which: lifecycle xa Plm anining s W Funds ith t C he o mp A int ll an ery funds an option a Sto ctio ck n o Balanced Funds an option an option an option f both age 31.0% andFunds tenure w Funds ith ac Value Funds count 12.9% balances rStock eveals t56.1% haOther t, for a g Unknown iven age group, 0%b holding the type of f Yund i ears of 704 674 743 651 ndi Tenure cat c,ded, 2014 Figur 3,512,742 3,943,271 4,762,719 3,910,846 e 29 $263,119,085,324 $311,819,194,252 $292,619,888,151 $350,475,290,163 Participants to accumulate an account balance. Hto equities, owever, a r by age, percentage of participants, ollover from a previous employer’s pl 2008 an could interfere with this positive 32 11 c a >$100,000 The S&P 500 is an index of 500 stocks chosen for market 30.0% size, liquidity, and industry 8.6% GICs group representation. /Stable- 41.6% 19.8% Equity Target-Date Balanced Bond Money Company a . $10, 2014. 000 National Comp bensation Survey: Employee Benefits in the United State ds, March 2014. Washington, aDC: inc A Tlud h All All t y e a e ea S d Of which: target-date funds ss our r - a et e cn lo e: a d a T and l 2014, abul ln oc dp a atrtfundi io ons iov 60 and under n is f p rio om ng. a pn, t E ehr B t c c R There is wi e o h I/Asset allocation distribution of 401(k) participant account balances nt m Ia CtI t p P oa h standing of employee benefits and ar f no r e t t are an option e iclid a pant a n bor un rw – gt -de it et D aih 26 r r- ec get spread d i3 – ons ta ed R 1 100 t- e da p ; fund h et et ie rc re b em are le tent fo h n acog c lta P la o n llo r an fc e n w e prov p D ition s d l at an t a m o64,619 54,765 C s i s u de ol 550 that if employee be thi w lu ec rs a ft it t a ilh 26% on i f nd i t u 1 2009 s Pn fo r0 oj d a ns ec o cur r us t.ss f e fr e et rsw ;o s e gove w m r er p g 24,019,828 24,000,380 2,762,424 art rrnm e a o nw e ic ssu t e fits ih t nt pan org m odata exist, EBRI kno i ed t tcnc sa.ni o P o z m art b ate 26. ie i ons o ic$1,535,552,420,774 n iv 0% $1,092,467,739,069 p $306,739,812,106 e v ;a r est an t nd s tim ed lo e e i a rvi is n n t c equ ac e yw fi p ts iic rm iv ta iiit. es tlly sy. (see • The the bu a lk llo o ca f19 401( tio 98n o 19 k f 99 ) a sas se 20 s t00 s e t in s20 a w 01 n er ind e 20iv 02 inid vua e 20st 03 l’s e d i a 20 cc 04 n o st unt 20 o 05 ;c a knd s 20 . 06 O n 20 av 07 erag 20e 08, at 20 y 09 ear20 -e 10 nd 20 201 11 4,20 66 12 p20 er 13 cen20 t o 14f 401(k) I Figure n ve $10, s t E m 30, . quit 000–$20, e 2001b n Asset Allocatio yt, p bond, ec r 000 .f o “Th rm m oney, e a n Im ce p and/ 32% n lik a t ce to or lo Equities Var y f balanc eE xp 32% mla ped lins oyf e unds ar 31% -g iS ed o eo led Widely Percentage of Account Balance Invested in Equities c tde 29% eda l Inv Am of et 52, s he ong 30% tm 294 fe luc 28. nt 401(k t 4% u Oa 33% ptt) io io Plan Participa n nsin o31% 4 n 10, 04 1 076, 0 (k 1) ( k 530 p 28% )a nP rttla si c.......................................... n ip P aa 30% nt rtsi’c ip a $631, sasn e 30% tts 526, ’a A llo s270, c sa et 31% tio 693 Ans llo coavte 32% io r..... 30 nts im : e. highly Age Gro conce untFunds rated in eq Funds uity securitie Funds s for that a Funds ge group Funds —as t Value Funds heir only equity Stock investment Other . Anothe Unknown r 7 percen Total t of nu re mpbo esr 20s it o ofr a y 1–100 co tifv 38.0% e inf 401( ormka)t p io 15.8% a n rta icbip oa ut n tind 37. s to 5% Percentage of Account Balance Invested in Target-date Funds iv 12.3% b id eua ab l o4u0 18. t1 55 ( 3% k 9.3% m ) pila llio n np i5.5% a n9. r 2014 a t1% icipann t d a 8.4% t ch c 8. o e0% un nutm s.b A es r o 7. 7.8% of 2% f 401( Dece km ) p b 1.3% le ar n s 3 t 1o , 2 b0 e 1.3% a 14 b,o t 8. uhe t 4% 535, E100% BRI 000. /IC T I he 44 a The Russell 2000 Index b, measures the performance of the 2,000 smallest c U.S. companies (based on total market capitaliz c ation) included in the Russell a Per c All All All All entage of . 20 Source: 15. par T “abulations Wha tictipants D from EBR oe 54. s C 7% I/IC ons I Participant-D istent P irect ar ed tic Rip etirement a Percentage of Account Balance Invested in Equities tion Plan D in 4 ata C 01ollection (k56,232 51,852 64,455 64,141 ) Pla Project. ns Generate? Cha 21,773,080 23,983,398 23,441,185 20,743,731 nges in Account$1,425,142,471,345 1,414,796,263,998 1,414,179,196,794 1,210,414,818,938 Balances, 2007– av Figure 3, 401(k) erage Mac S inor ource: c o inv ues nTabulations t tm Plan b ent al opt an C ions ch e from arac s ar t e not e En teri Bd s R how It /stics, by Io C In; iP n tac her rticipant-D re efa ors Plan Assets, 2014 e, e per w ira ciected t ent h ages te Rn etirem u do not re. ent F add t oP ................................................................... r lo 100 per an ex D am ata p C clent ollection e,. P th ere cent P av rages oject. erag ar be dol e ac larc -w oei ught nted av baler an ages ce. of par .................... 9 ticipants in c Age Group Funds a a a >0–50 percent Average Asset A >50–90 percent llocation for 401( Stock k) >90 percent Plan Participants W Totalithout Th co r S e ree el 2014 Age Gro a H tio on lden b Eu B ec R et a I Funds / u Ia se C l.I 2 a 401 r 00 o8 ll(; o k H v)er o dl a de ctoan u b ,l V d gi asa en vc D Funds e a o er n sh h ta ei in o , a s rt n -in td A en fo Funds u rlm o red na so t em io 2 n Funds 0 pl 0 oo 9 ny ; H 81, ee a o Value Funds 139 lden high ,401( V a ac ncD ko)er u p n hlta ei ba n , sa l a n w n d A ic th e. lo T $1. nh so er 9 Other 2 e i tr0is l1 li0 o so ;n a m Unknown in n e d H a dissc s oe ler d ten sn ia bl e ne td a ev l. 2 iden 01c 1e , Source: Source: T Tabulations abulations from from EBR EBRI/IC I/ICI Participant-D I Participant-Dir irect ected ed R Retirement etirement Plan Plan D Da ata ta C Co ollection llection Project. Project. >10,000 All Plans B Ari sg sh ettS A colp loc e an a 1–100 td io In ns ve of stm R 101–250 ee nc t e Co nt m ly p an 251–500 Hiyr e In d P stita ur t 501–1,000 e t.i c2i0 pa 15 n . tT s 1,001–2,500 h e BrightSc 2,501–5,000 ope/ICI D5,001–10,000 efined Contribution Plan Profile: A Close All U.S Of which: target-date funds Of which: lifecycle . D e p Of art 3000 Index wm hiceh: n tt (w ao rget hich tracks the 3,000 largest U f L-dat ab funds an option oe r,f unds Bu are an option re to equities, au are o an 101 f .S L opt P . companies). ab – er 2, ion c o by age, percentage of participants, 500 ent r Sage of tatisti A cs c.c A ount vai B lab alanc le a e I t nvested in B 2013 alanced Funds v I ref n av rer e ies > rd tm $20, e d t m be000–$30, o n o N d t Co a ote: Percentages ess t tm ly he 000 p Age Group b gl ay n iy de p I la may n p n sa ti not s 28% ttu h ize add to 100 percent .te B ,, ec Qu raa ng u 28% a Zero se ring te di r ly fsc because r S ou 28% m u ssi p p 1 of ol8 1–20% n e rounding. m sp o e e25% fr n a cta e Account ss r nt yet D o 37, a f a >20–40% balances 26% ltp l359 a oa ) c72,676 41,329 46,788 .ra A ttic iare participant lo lip o n29% c a u a nt ti su o sa n >40–60% w l to ly account it f 27% h e o 7,c 40s q lo 583, u u balances a s o iti ns e 948 n 26,421,360 18,038,161 17,769,074 s25% o itu >60–80% n h held t e s ta t in 401 pa rer get nd c 27% (k) plans en ing -da ta tin $473, e g>80–100% at the participants’ fund e o 426% 0 $1,912,462,296,032 f272, 1 1,114,701,611,533 t 820,058,297,397 ( s hk e i)s a 315, po pla ssu 27% r191 current tnfs o m lw ie od i it t n h 28% v o2 e var 6 st e to y d Source: T 101–500 abulations from EBR a I/ICI Participant-D a a a38.9% irected Retirement Plan 20.0% Data Collection 6.3%Project. 9.5% 5.1% 13.8% M Age uch pa or 20s 30s ft N itc ot he ip ala l m par nt 32.8% 47.0% o s tiv c’ ie pant am ss se e ar nt 20s ts e of in w 34.2% f9.3% er et ed rh ee t hi inv la s inv re g es setts e mtd ent 8.3% 8.7% c in o opt m e ion. p qo uit S ne 20.4% ee ynt Fs 10.3% i7.4% gur ,e c e e ur q 22. uit it ie ys 2.3% 5.2% f und throsug , th end 13.3% e3.9% 7.4% qsuit toy rfe und flecst, o 8.7% 6.4% the ver e aq ll uit e 66.3% qyuit 1.9% 1.9% py o rm tio an rko e 1.4% 2.8% ft b pa rilc ae nc s,e 100% 100% w d hic fund h s, U.S. PJoi ren lim t N N N ote: At ote: C ote: inom a Account r Ry yow m ear-end 2014, Fi t percentages in t balances are e di en on gs the av .T ” participant account a W m erage account xay a ot rnot ik on in add . g 2pa 0 to balance 0 balances held pe 100 6. rper T among pr ecent c ehni pa all 24.9 million in because rc 401(k) plans e ad l E fo xp r of 401(k) particiants la trounding. at the participants’ he na C tio en nt "o e Equity fr wH f as o current employ . r $76,293; R. funds P e 4ns , ” include t the median io he ers n “a and are net P m nd eutual account ns Re iofunds, n t of ir balance plan P erm o bank loans. R e te wnt ac s t collective $18,127. Account balances io Re etirement n sA ea ct rsav co h if ngs held (2C 0P 0RR) 6 in ” a C s urrent p est a driat t m ic ab aip te as a o nt e fs t i n Source: h in c e n lu the d u Te m abulations ir dber 2 s0 tat o s ifw from EBR s a tiitcc h tal io v ut e 4 I/IC inf I Participant-D e 0 oq 1 r uit m (ka )y t pl io fund a n irn ect a pa ed b s o R h rut etirement ta icd :i pa eq nPlan D uit ts iys ata C e bxp as ollection e od sur on e Project. a o c nly om tb hirn oaug tion h of no d n– attarg a fre om t-da Ut .S e. D baela pn ac rte m d efnutn of ds L , aabnor d , Of which: lifecycle Of which: target-date funds Of which: target-date funds Of which: target-date funds d Age Group their importance to our nation’ funds an option Zero an option an option an option 16 1–20% >20–40% s economy >40–60% . >60–80% >80–100% 2013.employ ” ICI ers and Rese are arc net h of plan Pers loans. R pect etirement sav ive 21, n ings held in o. 4 an plans d Num E at B ber of prev RI ious employ Is Part s37,878 39,895 45,227 46,373 uicipant e B ers or ris in ef rolled ov ,Plan no. er 4into IR 18 ( As Se 15,133,912 17,583,326 16,786,399 15,526,062 are pt not em included. ber). T he Av tenure v ailab ariable 1,014,705,539,041 le 941,037,785,597 961,830,614,457 901,506,032,570 at is generally their 60 20s cs with 31.9% up to two 40.3% years of atenu 7.1% re was $34, 5.1% 673, co1.8% mpared wit 1.9% h $274,043 5.4% for par aticip 3.9% ants in th 2.5% eir 60s w 100% ith more Table of Contents Note: Account Formerly balances are the Lehman Brothers U participant account .S. Aggregate B balances held ond Index in 401(k) plans , the Barclay at the participants’ s Capital U.S. Aggregate Bond Index current employers and are net is composed of securitie of plan loans. Retirement s covering savings held in 2012, of roll 2013, over GIC a sss a arn e et d guar s 2014 f aant meed i on 30s g o nv t r es h de a tm p tent aa fr c o tont irc e irpa ac ar tn sli .te s w r ye ita hr s a. 27.8% c couE ntqui bala ty nc Fund B es greater 13.9% al th ances, an $100 by ,000 P , a ar s 2 ti 58.3% ci per pant cent o A f t ge or hem h T adenur two o er fewer 10 24. 09> m $30, illio 000–$40, are participant plans n 501–1, p at prev art 000 000 ic ious employ ip account ants balances ers ( 23% For rolled igur held eov in 401(k) plans 1 24% er 40. ). into IR 0% A As are not s 25% in at the participants’ the included. 16. Percentage of Account Balance Invested in Equities 4 7% 0 22% 1Num ( Tk he current employ )tenure ber univ of 23% v8. ariable Par e6% rsters e icipant is generally a and are 26% t la s in rg net of plan loans. Plan 9. y eears w , 2% 25% mo orking at curren st of R5. etirem 23% the 3% ent t p employ la sav ns 24% ings er, and in held in plans the thus may 24% daat t ov a prev erstate y ba ious 17. s 24% e 1% ears are of sm 24% all: Lo Eo quit Of which: target-date funds k trus a yt, t N bond, 401( s, ote: T life he ik nsurance m 20s ) A analy oney, ge G Pla sis nincludes rs oup separa and/ , 2013 or 401(k) te balanc accoun (9.4% De plan participants are an option EcBRI’s ed te s,m an f> unds b 2, 0–50 per d w e 501 any r ) w ,ork a . i th – poo S 1.4% 10, tw an o c le ent or 000 dva dD few inves ienc eg r yoe tears of tenure in the y me s, know CA nt2.3% pro : B d >l uc 50–90 per riegdge t pr ht ima a S ear crnd unde o il indicated y p 5.2% cie nves ent an tand in a ed drs W it n aequ ndi as plan h iting of e 16.3% ioffe es. ng > ring company Itn 90 per oan dditi ,m Dpl on, cC: ent o stock as y 401(k In 65.4% eev be e ) an s par tne m ticfi e ipan tns a t tCo s nd t mphe anir y Figure EBRI delive • 31, Wi Exposure to E thd $0 rawalr ss a stead , borro quities Has Increa wingy , an stream of invaluable research and anal d loan re sed Amon paymentg s. 401(k 51,813 ) Participants Between 2007 a 19,154,232 ysis. nd 2014 1,377,118,128,750 .......................... 30 www 40s 30s.yb ears w ls.g44.1% 43.8% orking at ov/nccurrent s/eb20.6% employ s/ 7.0% beer, ne and thus may fits/206.8% 8.1% 14 ov/erstate ebbly0 ears 05 10.9% 9.0% of participation 5.pdf 3.0% 5.7% in the 401(k) plan. 10.4% 4.9% 10.1% 7.0% 2.3% 2.5% 1.2% 2.6% 100% 100% 100 w iGroup ni equ th i pna it vries es, tic plans t Zero ip o trh a a at prev e nt ge. gl s it ious employ de A o 1–10% ss pa 24 et tp a he ers g llrc oen or rolled >10–20% c ean er tt io ao n lov lf t y er r p ointo IR ar ef equ lt>20–30% ec ic As are not iittp s ie an ts f hte s o included.T dec ri n ta >30–40% 4 lrige 0 n1 ihe n t(- g k tenure d p )a p t er elvan fund c ariable is generally >40–50% en s tw as ge i tw h o a 1 s f e 0ba >50–60% qu o years w se r itfd o ie eorking at w s i n en M r t Percentage of Percentage of p h o >60–70% current art e rn po iin cgs employ irp tfan to alrit er, and a o s>70–80% a n (a F s lithus may y ig ts u a is re ppr o 4 f ov t o 5 >80–90% erstate y a a )c r.get hLes o- ears an da an t of ra d e f >90–100% pa tiu on ss sd — es the Coman pad ring co m sn pa an gov ps ernment and corporate bonds, mortgage-backed securities, and asse yho stto sc o kf. ne Tww ely nt y hir -se ed v e4n0 1 p(ekr)c e pnt la n wp aa sr in ticip fixe ant t-backed securities (rebalanced d- si’n a cs osm ete asllo eccuarittio iens smonthly sp urcoh by v id as market capitaliz e s s tfab urlte he -v ation). T ra ins lueig he index inv ht eint s 'st m o e re nt cs e,nt b ond geneP Pral a es ns Nls y ote io employ participation e: ro d n “ Fs b unds P e y ers o fr tlic or rolled he ”o iin the 401(k) plan. nc y m 20s lH ude I s 20 o ov s 40s us ue m er 03 ut into IR es ual to C h fn unds o r As are o nf Ju uly e ,g bank r not included. 11.5% h e 2 nc 2007, 8 col , 26 e l,2 ec 0 a ti 0 t v Cd e omponents 6 M r t, ro us ia a p t28.8% m nd sp 2.9% , e li if d e U may a ins s niv in not add to ur C 2008, anc e or ns s e it id sy epar 100 percent e ,4.2% r ro O e atsx d e ef ac o b fr r cy ount d o because ,tm 13.9% he O s ,20 H and S of rounding. ,7.3% e 09 J any na une t th pool er o 8 o ed u – n g 9, inv A h ug es 2001. 201 20.6% tm us ent 0, t 57.4% pr 3 m odu , 2 o c0 d t 0 pr e6 ir m a 53.5% .ar tJe ilC yd X inv i-n es 38 t2011, ed -06 in t he ( Au ang du rso t s3 e) . an Figure other 4, EBRI 4 pe inv rc estment /ICI e bnt he 401(k option. ld co ) Da mpa tabase Repr ny stock asesen their ts oWide Cro nly equity ss Section o investmentf. 401(k Five p ) U erc nivers ent he a d ........................................... equity exposure through som . 10 e Bureau o 30s f Labo44.5% r Statistics 2 25.3% 012, 2013, 2 5.9% 014, and 20 6.6% 15; a 43% nd 2.7% U.S. Depar2.9% tment of Labo 6.1% r, Employe 3.4% e Benefit2.3% s Security 100% > w $40, ww 000–$50, m .i1, ay ciSour 001–5, . hold org/ c000 e: equities pdf T 000 abulations /pe through r2 22% f1 rom -04. balanced EBRI/ICI Par pd 21% f 40. an funds 8% d tic ipant- w or 22% w co w Dm ir.ec e 16. pany b ted r 7% i20% . Retir stock org em /p — ent see df/b 21% Plan Data Figure 6.r1% iefs30 p Collec d 24% for f/E the tion B9. R distri Pr 2% I_ oj 22% I ec bution B t._418. Percentage of Percentage of Percentage of Percentage of of 5. 20% 401(k S 0% ept ) 15. plan 21% L account ongit-a balances K 21% s.pdf to 16. 21% 5% 21% than 3 0 and y participation ea GI Sour rs Cs o ce: f Age Group and/ in the 401(k) plan. t Te abulations nur or ot e her ( fF rig om sur t able EBRI/ICI Par e 1value Zero 3). t ic fS unds ipant- imila Dirr ec 1–20% ly ted , tRetir he em av ent er>20–40% Plan Data age acc Collec ountt ion >40–60% bPr ala ojec nt. ce of pa >60–80% rticipants in >80–100% their 40s with up to two total return consists of price apprec 30s 1996 20s 1999 8.8% im iation/depreciation plus income as a percentage of the original inv porta2002 nc 10. e t4% o 2.7% the na 2007 tion’s 26, e 635 3.6% cono 2008 my7. a5% mong pol 7.6% 2010 6,679, estment. icym 651 ake2012 18.7% rs, the82. ne1% ws $480, 2013 m58.5% edi 377, a, a217, nd 2014 t830 he public. It 55 yea p rs o ercfe tn en t u orfe, th a en p d 6 lan 50s pe s h rcav enet o 25 f t o hr em fe h wa ed r p bet art 28.7% w ic een ipan tw tso , a an nd f d 2 iv 5e pye ea rc 13.7% re s o nt f t hav ene u r2 e6 ( se toe F 10ig 0u p re 1 art 57.6% i2 c)ip . ants (Figure 2). In Investment Options Offered by Plan Investment Options Offered by Plan 40s 50s security i ndi 35.2% 45.5% cated.EBRI 14.8% 6.4%publications in 6.1% 8.1% clu >10, de 000 in-de 10.0% 12.7% pth Percentage of plans Percentage of plans cove 3.5% 7.3% rage of key issues a 16.2% 6.8% participants participants 10.5% 8.2% nd trends2.5% 3.0% ; summ Percentage of assets Percentage of assets arie 0.9% 2.2% s of rese 100% 100% arch Institute. Available at www.ici.org/pdf/ppr_15_dcplan_prP ofi er le c_40 ent1 age of k.pdf account balances, 2014 20s 39.6% 1.3% 1.3% 1.2% 1.1% 1.2% 1.6% Percentage of 1.0% 1.1% 0.9% 49.8% a a the ss met t oun a r ag ltle oo tc d fa tta ihe o te n , ( w losa ee M hi 30s n co h i u os trs us ntia nua nd gst lilng a y i r 2 nd 10.3% d0iv i1 cid 5 atb e ed d a nd ib n t y no t hhe e t4.1% fund e 3 re9m f’s a o na ining r ad m di e ta .5.4% i T c oc n he o aunt l t di ar sc g bu e atssi la dn o 9.5% ac n te e )— g . e vne ary ra o lly nl 20.8% iy s t she lig d hta ly t ew ahe t 49.9% w n hi pca h t rtic he ip taynt pis c aal re 45 • 24.9 million 401(k) plan paarticipants, in fr inv om es f und t20 m 40s e 12 s nt equities. , taa hnd llo ro 48.7% u cm The a gto h io ne tenure 2014 ns y. fB und variable 17.4% a (la Fis n g.c u e r is e d generally s f und 7, 8, 5.6% s ,ya ear w nd hic s w 20) h orkinc . ing A 7.6% lud at t y current e ea lif r-e e 3.4% em s ntd y ploy le 2014, er, and and te 4.0% a thus qru gie t m y tay - d fu a overstate n te d sf und 7.1% we yr ears se, 43 ha of v participation p e3.9% e inc rcernt ea o sin e f 2.1% d the the in 401(k a ps osp )e ula t100% s in rity t he Introductio Investment options offered by plan Investment Options Offered by Plan Investment Options Offered by Plan Investment Options Offered by Plan > W $50, ash 000–$60, in >5, ng .................................................................................................................. t 000 on000 , DC: 60s U.S 19% . Joint C 19% 36. om 5% mitte 20% e o29.4% n 19.T 7% a 18% xatioPercentage of plans Percentage of plans Percentage of plans Percentage of plans n. 19% A3. va 8% ilable 21% 13.3% at w 6.w 9% 21% w.jct.gov participants participants participants participants 6. 19% 1% /x-38-0 57.3% 19% 6.pdf ........................................ 7 19% Percentage of assets Percentage of assets Percentage of assets Percentage of assets 20. 19% 2% 19%   c Ao dm mb inin isat tra io tin o n o 2012a f targe, 2012b t-date ,f und 2012c s, ,no 2012d n–targ , 2012e et-dat , 2014, e balan 2015a ced fu , 2015b nds, o,r a cn od m 20 pan 15c y .s tock. As a result, many participants For year - en Of d 1 wh 9ic 9h: 8 da target ta, -dat see e H funds olden doe are , V s t aan hi nD sopt b ery h ion c ei,o anduc nd Q ting uicka nd p 2000. ubl ishing policy research, analysis, a 24.nd s 0%pecial reports on 40s 20s 9.4% 9.9% 50s 0.9% 3.9% 19,167 1.6% 4.8% 9.1% 3.6% 4,814,107 12.6% 29.8% $347, 71.4% 43.0% 263,807,190 years of tenure was 30s $19,697, compared wi13. th 4% $159,118 for particip 8. a7% nts in their 40s with m 77. o9% re than 20 years of tenure. T80 he cW ha 60s 50s ng heat in we 28.0% 37.9% any ind do ivid 12.7% 5.6% ual participa 6.4% 7.6% nt’s accoun 12.5% 14.5% t balanc4.5% 9.4% e in the dat 11.6% 23.2% abase is influe 9.1% 8.4% nced by 3.4% 2.6% the mag2.0% 0.7% nitude of 100% 100% these Figure 32, . 2015. Asset Allocatio Nafinding tional C s o nand m Distribution of 401(k pens policy ation develo Survey p:ments; E)m Part ploy icipa timel ee B ne y t Account ne factsheet fits in t Balance to he s on Unit hot topics; ed S Bala tatenc s, regula ed Mar Funds, ch r2 up 01by 5 da . W tes Age ason legi h .................. ington slat , Dive C: 32 and cont Equity, bond, money, and/or balanced funds Investment Options Offered by Plan Equity, bond, money, and/or balanced funds rast, 177.7 only 2 pe 0.10847 rce An llt of th10.8473 e plans have mo 25.9% re than 2 Percentage of plans ,500 53.1% 65.3% particip 13.6% ants. Howevparticipants er, 29.4% 36.1% partic 60.5% ipants an Percentage of assets d asse 22.2% 30.6% ts are 30s 47.4% plan. Salary40s inform 2.8%ation is 2.2% available 10.9% for a 2.0% subset of 5.6% participants 1.7% in the 6.5% 24. 1.9% EB2% RI/ICI 401(k 10.6% 3.3% ) database. 1.1% 30.5% 1.3% c 35.8% 1.5% 34.8% All 37.2% 19.2% 4.3% 7.3% 5.9% 19.5% > $60, 50s . 2 000–$70, 001c43.4% . 000 “Contribut 14.9% 16% ion Beha 17% vio5.9% r of 18% 401(k) 16% 9.4% Plan Par 17% 4.5% ticipant19% s.” 7.5% Inves 19% tment C 7.9% 17% ompany 18% I 4.3% nstitut 17% e P 1.9% ersp17% ectiv100% e 717% , no. 4, g Figure 5, 401(k) 26 inv roeup sto erd fo bra w seho d m on Part tha tEBRI’ he icipa t fund size ns mission is to contribute to, to i ts osf Represent d th es eiir gn 4 e0 d1 w ( a ko)ul Range of Ages pdla rn es a c(h r as em tireeam s ....................................................................... ur ent e a d g be y a the nd s num top m bea rk o ing f p n laen wp ia nv rte ic sip tm ae nt ntss) i . n t Am he o fun ng ................. 11 td. ho se in among 401(k) participants. Recentely m pl hio re ye de be parnteic fiip t iasn sue ts sin ; hol 20 di 1ng 4 e teduc nde atd iona to lb br e ie m fio ngs re for E likelyBRI m toG ho ICs eld m / S be bta abl rs la , c e- nongre ced fs und siona s l and E HB oR ld Equity, bond, money, and/or balanced funds Equity, bond, money, and/or balanced funds Equity, bond, money, and/or balanced funds Equity, bond, money, and/or balanced funds I/ eIC n, I S4 a0 ra 1h, (k )J a dcakt ab Vaas nD e,e rah beoi,u t T L uis ar thget e As -lo D am at ns e eo ,as S N tin on- ev2 e T0 n ar 1get B 3a . -sB D sa at , la a en nd 54.3% 53.8% 63.0% 63.8% ce A dnnM B fund ond as rie , w Phic inoh . inv 2 M0 oney 1 e 29.2% 34.9% 34.6% 30.3% 4 s.t “ in 40 b1 o(tk h ) e Pq la uit n ie As ss a end t 21.8% 27.8% 28.7% 24.6% A llo fC ixe om ca dpany t-io inc n,o me with no Equit eqyuit , bond, y fund m 30s 50s oney, s had and/ aexp or os balanc ur 11.4% a 8.5% e ted o efq unds uity , -r6.1% 1.9% elated inv 20 est7.0% 2.6% ments throug 19.9% 5.7% h company 29.3% 15.8% stock, balanc 26.3% 65.5% ed funds, or both Because 401(k) pla40s ns were introduced nea14. rly4% 35 years ago, older an 8. 2010 d 2% longer-tenured emplo 77. yee 4% s would not have 33 All 60s 37.4% 31.8% 11.5% 6.8% 6.3% 8.1% 15.0% 12.3% 6.1% 7.1% 17.0% 15.2% 7.3% 9.7% 3.1% 2.4% 2.0% 1.0% 100% 100% regulatory development c s; comprehensive reference resources on benefit programs and workforce T B About the EBRI/ICI he urha dis mt Of which: lifecycle Of which: target-date funds ,r ib Kim utio be n rlo yf, a M Databas cic co hun ae funds an option tl B beo a .............................................................................................................................. la gd na c are an option n, es aund nd e Dra snie corl eS sc thr he a sesf.f e 2c0t1 s 5o.f “a O gw ene and rship tenur of e M o ut n ua ac l c Fo und unts b , a Sla ha nc reeho s. ld In era Sgeiv nt eim n a eg nt e, ... 7  threEquity, bond, money, and/or balanced funds e factors relat50s ive to the start13.0% ing account b 8.1% alance. For 8.4% e 71.0% 40.4% 47.0% xample, a 20.5% contributio43.1% 23.6% 28.1% n22.5% of a given do 27.4% llar am35.3% 17.9% 23.8% ount produces a c 46 340s o O nc tU h eer n .St r .r at 54.5% es D 169.9 e e ea d p art ric nh m l arg su e 0.10371 3.6% n gg e t est o pfl an s t L aab sh . a o 2.7% F t 10.3711 r, o m r Bo e a a aust x re am 4 au 0p 1 2.3% lo (e bk f, ) L p 6ab 6 a ro p tir e crc iS pa t 1.8% e at n ntits s t odo ifc sp n .ar A ot tv 2.0% i m c aiip la ab an ke le ta s a care tti v3.1% e c inh p aln an gess t w 1.1% o it t hh m eiro a re s set t 1.3% han all o 2c,5 at0io 0n 1.4% p sa du rtirciinpg a an 26.2% n tsy, and Alter>n $70, a • 60s t iv 000–$80, Pl 81, ean ly, s W 139 1 37.3% 7 000 ith e p C m ero p cmp e lont y an e 13.8% 16% o r y-f Sto s p pa o ck an rns tic 15% oip rd e a GI d nt 6.2% 4 C s0 s w 1 16% /S ( ek tra) e bl p in ela -V 11.6% ns p 15% ala lue , ns ho Funds tld ha ing 16% 6.2% t o ffer c 18% om 11.7% pany 17% stock b 7.1% 16% ut no st16% ab 3.8% le-value 16% 1.9% prod16% ucts,100% while 16% the • More 401(k) p Age Group lan participants held >0–50 percent equities at year-e >50–90 percent nd 2014 than befor >90 percent e the financial market crisis U S tk ee us an I , n d S v te E est B pR m he I en n IstP s C u . o e am nd Bpa ri e Jn e fy , a I n n n o. A st.i2 tY u 3o t8e 2 ung fe (Oc de 0.1 ra t6 2 ob l. 0 a A 1 e ge t2 r ye ).n . c H A y ar o v sw -a te ai n lff, A adb m a 2015 le e nd t ra icth a ,w e 4 ne Sw 0 a1 w v w(e . skis c ) m pl i2 .eo 012: di a rg/ n a;s h a pdf nd s A a d $ /R pe e pons p 4. ro 07r 7 ori t- t r0 o ng publ illio 4 n. pdf Va n in n a g i a cnd u opi sa s red ni t s2011 on s . urve De yfi s on e ned mployee pl an In t s he w Of which: lifecycle Of which: target-date funds Of which: target-date funds Of which: target-date funds i d tha 5 ta0b0a s oer , 4 fe0 w 1e (k r )p p art funds an option lan icip paan rt an option an option an option it F csiunds p , a th nt es ’ ho loan ld Bra ing alt anc iso o ed w f,as a Fnd unds 13 c o pnc ere ce nt nt Frunds a toio f n i the n, c reo m map F ining a unds ny s a to sc sk e th sV a in al ve t ue F 20 en 1 unds d 4ed , wthile o d ec in S lin tp oc e la .k I ns n t w hit e h Other Unknown and $70, com 000 pany 40s stock 8.9% 2.8% 847 3.6% 34.9% 42.2% 45.8% 41.4% 7.3% 4,177,96627.0% 24.6% 27.4% 23.0% 30.1% $344, 47.3% 874,377, 21.1% 22.1% 20.0% 18.4% 909 c se oc m up ri Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. a tire esd, w init ch rer as ec 60s ee dnt 50s in hi srheare s in , ac the 16.2% co p ua nstt. in g Ab f14. o or u7% t 2 8.2% 5 tw poe-rc the ird nts o o 13.2% ff tre hec e as ns t7. le y 4% t s h ii24.8% re n d th 4 e0 d 1at (kab ) p as l15.8% an e at part 77. yei8% c airp-a en n 21.8% tds 2014. from 2D 0e 1s1p itth ero m uig nh o r Acc All ount Ba 39.2% lances, and 14.1% Loan aActiv 6.4% ity in 201311.9% .” ICI Re4.4% search Pers 10.8% pective 20, 8.2% no. 10, an3.1% d EBRI Is1.9% sue Brief,100% no. 408 (Figu re 29). Figure 12 particip33, ated i Asset Allocatio n 401issue (kencour ) pl 20sa sn ; s f n and Distribution of 401(k o age r t major survey h, and to enhance the development eir entire cars e14.8% er ofs. )pu T Partic h blic e Ripa e at vtitudes. en nt Account ue Act o 10.0% f 1 Balance to 978 contain Bala ed anc pred o 75.2% viFunds, sion thaby t bec Tenur ame I e n ............. ternal 33 60 60s 18.6% 10.8% 11.8% 18.9% 16.3% 23.6% group Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, >$80, , s Of which: target-date funds ho 000–$90, 1–100 rter t000 enure tend 14% s to m14% e are an option 35. a an 8% that 15% a hig 13.he 9% 14% r percen 14% t7. ag 5% 50.7% e of16% parti7. ci1% p16% ants wil1. 15% l 7% 31.7% have ac 15% co15. un4% t b 15% alances 26.4% 5. 14% o 4% f less t 14% han largea a r ng d All ro Uw se th o ra 43.5% f tth ee w In ht eenr 16.7% n ad etd , e201 d to 5. a ” s ICI 5.9% mal Rle er seac arcco h 9.1% u P ne t.rs O pn e c 4.4% tthiv ee o 2 th 1e , rn ha o. 7.0% nd 5 ( , N inv ove esm tm b 7.3% e ernt ). rAevta ur iln a 4.0% b s le o fa a t giv 2.0% en perce100% ntage gi 50s vLen ifw e y st w ea yw l57.4% e f r..b F 86.2 u ls. o nrg d o s m ex va /0.05262 n m a 4.0% c in pl s/ te, a eib n as/ n a b I pr e C 2.7% n 5.26187 e I su e det fitrer s/ vbe ey m 2ne 0 o in 1fi ed f5 2.4% r t/ i ec r e sb issk o ue brl l dk s 0ev .0 ee E 5 el B 7 per 1.8% R .a pI n d ’ s c d sf E gen od vuc ee rir a n 2.0% a tg m illo yn a uose r nd R e w th oa e 2.9% rn s ds e 2 ar su 5c m h F c2014 EBRI/ICI hil a lund io s “ n 1.1% D c(E oC n BRI se pla rv -nE a p RF t1.2% ia vre, ) pe ti” c “ ipa rform mn otd a er s 1.3% t ca c he o te, u cn ”ha o ts f rri to a23.2% u bln ed , t Figure 6, 401(k) rh ee msa ein sing am e 1 6 p lp an erc sPart a ec nc ticipa ooufn p tn afts rt or iRe c6 ip 8 present an pe tsr cw ee nt a re o Range of Job ifn a p ll lan pla sn th aat ss e Tenur otfsf.e re Bees dc a b................................................................ us ote h m coom stp o an f y the st opcla k ns an ha d svte ab al es-m va alue ll nu pm rob de urc ............. 11 o tsf in A lifecycle fund typically rebalances to an increasingly conservative portfolio as it approaches and passes the target date of Of which: target-date funds are an option the fund, which is usually EBRI/ICI (Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. yea 401(k) Data r-end 20 50s 07 30s base ), an ...................................................................................................... d mo 10.3% st had the m 21.2% 4.4% ajority o571 f th 5.5% eir ac 11.3% cou20.1% nts 3, in 366, ve 805 ste30.6% d in e 67.5% quitie $268, 29.1% s ................................ 7 .170, For 480, exam 143ple, about   Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, w Co w nt wr.ib ebr utiio .on rg/ P All A la pdf ge G 60s n /D br a roup ite af. sV pdf all/e 10.8% 1y0 0 For 1ib. ge pdf , P 13. A :9% 4.4% The Vanguard 5.9% Group 6.,7% Van 12.6% guard Cent23.8% er for 79. Re 4% tirem 42.5% ent Research. m wa okre o e th f t ah n e c 5,o 0l0 la0ps pe o artfic E ip na ro nt ns i,n t 2 he 00 lo 1,a pa n rra titcio ip a w na ts’ s a 11 w a pre en rces ens o t (fF tig hu ere ne 4 ed 6)t.o diversify may have increased and some plan 2014 held bab blanced funds, compared with less than half in 2006, and one-third in 2002 (Figure 35). At year-end 2014, shifts (D in eca esm 101–500 se bt e a r)llo . A ca vEBRI t ai io lab n, lm e o at smeetings tw 4w 0 w 1 36. present an (.k i2% c)i .p oa rg/ rtipdf cip18. d a /pe nt explore i 3% sr 2a0p-p 1e 0Figure 31 a .s pdf rsues e 8. d0% a nnd owith t to ha thou v 6.e 2% ght madleade e d2. ra 4% m rs afrom all se tic shif12. ts 1% in ctors. their ass 4.e 9% t allocations >$90,000–$100,000 13% 13% 13% 13% F13% igure 28 15% 15% 14% 14% 14% 13% 13% 4 Reven Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. ue Code Sect All ion 401(k). The 12.4% law went into 6.1% effect on Ja7.0% nuary 1, 1980 13.0% , but it was no 23.4% t until Nove38.1% mber 1981 that proposed and GICs and GICs and/or other stable-value funds and/or other stable value funds 40s educational,22.7% and scientificMedian functions of t 10.7%he Institute. EBRI-E66.6% RF is a tax-exempt organization Equity, bond, money, and/or balanced funds, a Figure 47 Figure 45 Figure 15 Figure 17 32.6% 43.9% 24.7% 27.6% 24.7% 21.0% $10, 60s w 000. w Sour •w 59.1% ce: T 271.3 $ .Fo ic 1i.r. abul 9 b b b b oe rtx g/ ati ra ions llio m pdf 0.16561 3.7% p fn rl om EBR /e pe in , 87 ra2s I/IC 1 sp -e05. e I Par t2.5% rc s 16.5609 . te p ic n d ipant- tf o D f irp ected R a 2.2% rtic eitip rea ment Pl nts i1.7% n an D th ata C eir ol2 le0 ctis 1.8% on w Prioj th ect. two 2.9% or fewer ye 1.0% ars of tenu 1.1% re had ac1.2% count balan 22.8% ces of p ro Thde E u included in the fund’s name. ce m pl larg oye er e B do en llar efitin R ces reea asr ecsh ( Ionr st diteuctre e ( as Ee Bs R)I )w is a hen n c oo nm pr Figure 8 p oo fiu t,n n do en dpa orn t is a alnarg , pu ebl r as ic po setli c byas rese e. A as rc sh e o t al rga lon ca izta io tin o nal ts ho a t does not p “ th a aa ggr rt 1 tices ip 0 Row percentages may not add to 100 percent because of rounding. Percentages are dollar-weighted averages. E.quit si a 5nt vp e” y er s,, bond, c in ten he th t Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. o ei a m 60s s fr D s n oney, of sound employee benefit pr e 20s a C t m pl size e and/ a tno p f i o or n a rdi rbalanc m ticc 14.5% a a ipa tne t 72. yn ed p h t8% s c la e f funds n h u sa n n is d’ ,g s r ed m 6.3% o isk td he e 8. ls ev ta 8% .s el T s.e w L ogr t e ia f 13.0% nt est llams and oycy -a t le f thio re u n o 2. e n1% dp f t s ehe gen 25.7% rce irn e a tr c ao c llf o yunt t a 1. hre 6% e i b p 16.5% n a la lca n lu nc sded e hs a i i vn 2 n e t 2. ah 0 1% s 24.0% e 1 s n 4 e to a sn nd o –f t 6 a$2 r .6 g50, et p4. er -da 9% 00 cen t0 e to r 5.8% 1.7% addition to the base A ollptions. Target-date f12. und 9% s were av Figure 19 ailable in m 7.o 9% re than 70 percent o 79. f t2% he 401(k) plans in the year- and GICs and GICs and GICs and GICs ta hre33 e-quar and/or other stable value funds and/or other stable value funds and/or other stable value funds and/or other stable value funds ters of part 24. ici7% pants in their 20s had more than 80 percent of their 401(k) plan accounts invested in Availab 501–1, le at 000 https50s ://institutiona 36. l.8% vanguard 22.4% 15. .co 6% m/iam Figure 11 /pd7. f/3% 43.2% 34.7% 43.0% 33.9% HAS12 10.1% .pd5. f 5% 2.3% 26.1% 24.0% 26.5% 27.2% 67.5%10.9% 24.3% 23.9% 20.7% 23.4% 13.1% A spo ss ne > so $100, t rA s m llo 000–$200, ac ya htaio ve c 000 n t ho an Eq ged 10% u pl itie ans d 9% esign (s10% ee VanDer 9%hei 2010% 02). In a 11% ddition, so 11% me of t 10% his mov 11% ement m 10% ay be th 10% e result10% of Row percentages may not add to 100 percent because of rounding. Percentages are dollar-weighted averages. Note: Components b Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. EBRI do not add regula ato 100 per rly cent aprovides because of rco oundi ngre ng. ssional testimony, and briefs policymakers, member organizations, 59 Figure in 2014. pe b b rc34, en t Asset Allocatio of recently hire n Distribution d 401(bk) par Exposure to Equities Increased A of P ticipan articipant ts held Ac tar(mid-point) c ge ount Ba t-date lance funds t , ow Company hile mong 12 pe St rce ock in nt held 40 no 1(k n)– t Plans arget- With date Co bal mpany anced Sources and www.ebri.oTypes of Data r a g/pdf/briefsp d ..................................................................................................... f/EB sR upport I_IB_408_D ed by cont ec ri1 but 4.401 ions a (k nd g )-upda rantst.e .pdf ............................ 7  40 Percentage of 40 Ratio of 401(k) 1(k) Plan ParPlan ticipa Accou nts W nt itBalance hout Equ to iSalary ty Fund , Balances regu and GICs laA target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approac t GICs are guaranteed investment contracts. io Of which: lifecycle Of which: target-date funds ns wer and/or other stable value funds e issued (se funds an option e H Few o401(k) Plan lden Percentage 401(k) Participants Had are an option , Brady, aA nd H cco of Eligible 401(k) aun dley t 2 Balances 006; E Outstanding 32.8% 23.7% 26.4% mplo Greater Than Plan yee Ben Participants ef401(k) Loans; it Res$100,000, ea 18.0% 19.7% 22.3% rch Institu hes and passes the te 2005; and U 15.3% 17.7% 21.2% .S. Internal U All .S. D e and p52.4% arc tm om epany ntEquities include equity funds, company stock, and the equity portion of balanced funds. “Funds” include mutual funds, bank o3.2% fs tL oc a 60s b k,o and r a, Em GI 2.4% p Cs lo 37 a a ay and/ ee B ore 2.1% nefits 22.3% Sec1.7% urity Adminis 1.9% tratio 9.2% n. 2 2.9% 012a. Priv 1.1% ate Pe 68.5% nsio1.2% n Plan Bulle 1.3% tin, Abstr 30.0% act of lFigure 7, Dom ess than 933.1 $10,00 estic 0 All 0.56959 in Stock 30s 2014, a n cd Bo o56.9589 mp10.2% nd Mark ar63. ed 7% witet h Indexes 53 3.3% perc 12. e n .............................................................................. 6% t of pa 4.9% rticipa3. nt4% s in 11.7% their 20s 3. 1% wi23.0% th between 3. 9% f46.9% ive and 10 ................. 13 y 6. e5% ars of 5.4% 1.4% influe b nces 1, inv Ratio of 401(k) 001–5, esa tm 000 ent returnPlan A s and38. cccou h 9% ange n st in Balance to Salary 14. as 2% sets. For e 7.xa 1% mp le for Participants , sto 5. c7% ks (as me 2.a 1% sin ureTheir 60s, by d by 11. the 3% S&P 5 Tenure 0010. to 8% tal return b lco ha a bby la ng nc o e e d r.d t fun 2 ta $60, he 0 k0 e d 2 a po 000 c .s s“ at e si Can te t a ig olo n lo 4 rs o y. c 0a1 n t( i l o kegi n o ) Asl f t ca che u tiv m ie ru c pr lPercent Change in Total Return Indexes at oo nt ipo orn ib ssa ut G ls. io e ns ne d rat ureing Si 2 gn 0i1 fi4 c ( an se t eIn Hco olm dee n a fond r F S uc tu hr re a sR s 2 et0 ir1 e5e)s . A ?”na Inly ve zis ng tm 2e0n1t4 C d oam tap,a U nty kus I le en n sd s the , > 2014 a $200, nd 1 Of which: target-date funds Of which: lifecycle Of which: target-date funds Of which: target-date funds 9 000 a y dno e aa tt a rhe s b a trha s e 2A t 6( g t Fi p he e g er u Composition c d r 5% e e funds an option an t22) a t b ha a .svee 5% an option an option an option T ha p hle a s n sb e of Selected 401(k) e a p e s 5% s ln aen ttr s sa b o ck fef4% ite ng w re e d e lo nt a a n $250, r5% g ae cttPlan -iv d 001 ia ty te 5% a a A fm u n cn d o c d ng oun $1, s to 5% 4250, 0 t 7 1Balance Categories 3 (k 0p )00 ep 5% rc la (e Fi n ng p t u a orrfe t 5% ic t h 3) ip e.a p nt art s5% ,i ctihe pan ret s ha 4% in s tb heee n 4% little A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approac Equities include equity funds, company stock, and the equity portion of balanced funds. 30.3% 24.7% 33.2% 26.3% 17.4% 18.4% 19.6% 19.7% hes and passes the 42a 15.6% 16.9% 16.6% 17.6% e c quities at yeand ar-en the medi d 2014, a up on employe from less th r a benefits. n half of participants in their 20s at year-end 2007. Overall, more than All a 19.7% 10.5% 69.8% regulations put in plasound public policy thr ce by the Pension401(k) Participants Betw ProtP ec ertc io ent n A age of ough objective ct of A 2c 0c 0ount 6 (P B PA aleen 2007 and 2014 ) anc , we I hinv ches lim ted i iten T d tar he get len -Dgt ate F h o unds f tim43. e p9% articipants could be funds,Row percentages may not add up to 100 percent because of rounding. Percentages are dollar-weighted averages. and Stock, by 4 perceParticipant nt held bot Age h tar..................................................................................................... get-date and non–target-d ate balanced funds (Figure 36). .................... 34 target date of the fund, which is usually included in the fund’s name. With 401(k) by Plan Participant Loans, by Age Plan and Size, Tenure 2014 The 2014 Of which: target-date funds EBRI collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security / 50 ICI database cov are an option e Loans T rPercentage of Account Balance Invested in Non–Target-date Balanced Funds s 45 pe by ended to rc Participant ent of thBe e un Small, iv Aeg rs e eand o Selected f 401( Tenure k) pY laears n participants, 15 percent of plans, and A C Rho m evo Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, en i,ng J u a ot e S ind m her e er >5, iv ss v id J ti000 able c .u ,e a 1 D b Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. l a 9 value 4v 8 W 0 id 11 40s )h (.L k fo H a unds )ib ps la o a n n, vp e B a E r rig t 39. ic 51. it qui ip 8% te 9% a n C ty t.s ,M Ex ta he d 10. pos r ia a 3% llo n, 13. c ur a and 9% te io ,n 1, A by nd 363 o6. f r P 0% 18.8% a ecw c ao r M unt t4. e ic t 9% r ipa b ica 5. kl.7% a nt 2 n3, 0 c A e 0 966, s 1 ge .t o “ 458 4. D 2. e or 7% e 7% q 15.4% fuit ine T ie de s C n (o e ur nt q 13. u re $442, iib 6. 1% t,y 5% u 2 t fu io 0 955, n n 1 d4 P s458, ,e c ns 14.9% 15. o608 io m 8% ns p 9.a 1% :n P y la stn ock, 7.6% 1.4% Investment O 2005 38 Form ptions 5500 ............................................................................................................ Annual Reports (Version 1.1). Washing41. ton 6% , DC: U.S. Department of Labor ................................... 8 , Employee Benefits   qqy,py, qyp , ten Su are lary ( Range Figure 14 The analysis includes the 24 million 401(k) plan participants in the year-end 2008 EBRI/ICI database. ). Older workers display a similar pattern. For exam 2011ple, 61 percent of participants in their 60s with index) target date of the fund, which is usually included in the fund’s name. increased 13 Percentage .7 percent dof participants w uring 2014, whilei th boaccount nds (as m balances easur 1, 2 ed b in specified ranges, 2014 y the Barclays Capital U.S. Aggregate Bond a nd Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, Y In c o s ung .t i2015. tu 2 te0 1 P 5 e H r rs oew p pe oA c rt tm ievd e e t ri 8 ha c, a tn “ So. av onl 3 ey , s 1 a2n 0 0d [ 1 p 5 Ee :B rR A ce I R nt Is e]p s o u of DC e rt B ori n p e V lfa , a n n no. p ga ur2 a ti5 rcd 1 ip 2 a (N 0 n1 tov s4 t er D m ae db fe ine e dr w )d . it A C hv o in ant i t la r hib b elir ut e a a io c tn cw oP u w la nw tn s..iD ” c S ia .o tim a rg/ . ila V pdf raly ll,e / pe y U tF k ror 0 u8 sg a -e 03. n , dPp Ad:f v da at ria ab tio asn. e. Fr o A m m o 1n 9 E g 9 B 6 p R ar tIhr tissu io ciug pan es h t2 spre 0 w 08 h ss , ao ow rele n ea re v as e o re fafs g ee re on ne , d le tPercentage, 2014 sarg s wsworthy th ea t-n da otne e - fu fdevelopm if ntd h so , f65 4 0p 1e ents, (rc k)e p na tand i rh tie clip d s a t nt h ae mong sm w at ith ythe mo a ec ar ce -e sn s d st t o2014. widely qu loans T ha ard goted et- 90 percent of 401(k) participants had at least some investment in equities at year-end 2014. H Ao sld se e Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product t GICs are guaranteed investment contracts. n, A S llo ara ch, at io Jan a ck Vn ad nD P Percentage of 401(k) participants by age of participant, ea rh rt eic i, ip Luis ant A A lons ge o , and Craig Copeland. 2008 year-end 2007 and year-end 2014 . “401(k) Plan Asset primarily invested in the Allocation, Account 5 r Age equired to hold c indicated. om Age G pany roup stock contE riB bu RtI Iss > e0–50 per d tu oe t B hei ri cr e ent fa s cic s a m ount os by nthly t > h 50–90 per pe ei ri rodi em ca pl lc o w ent yith er; i n sp -de ec pt ifh e iedva r>u l90 per ules r ation eg cof e ent ardi mn pl g t oyh ee e n be one tiffi icta itsis oue n so f 13 c A llOf wcollective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security indic hich: Age Group target-date funds 39. 6% are an opt >0–50 percent ion 11.0% Percentage, 2014 6.2% >50–90 percent 5.7% 2.6% >90 percent 12.8% ated. 15.0% 20 50s 43.Percentage of 0% 11. participants 7% 906 with account 6.6% 2, balances 416,914 6.4% 12. $261, 0% 659,178,138 10.6% 8.4% 1.3% Figure and company stock and company stock Equity, bond, money, and/or balanced funds, 8, Percent Change in Total Return Indexes .................................................................................................. 13 ab 1.3% 0.8% c 16.6% 14.5% 17.9% 15.0% a nd T 42 h e $20, R tp I he Not all participants are offered this investment option. See Figure 22. u e nlrc e 000–40, ve s e e q ,sn uit tm P t art o y e 000 f n ip c 4 t Co o i0 p r1 an tio ( m ktn p ) D a o pn e fl17% an y cb I is a n ias lo a sn ti nc ss tu e,e t 19% te s an d. ( fT d und Ih CI te h) e s i E 18% ) sB P v a R at a l I/ h rea ie IC o di s S& fI 18% n w L p P 5 g, e id ro a 0 g e 0jse ly lto c R ba ta 17% e Ru irs ls o ia ss und u sst el n sa l 2 oc in q 000 c u tihe 21% a e et. i”b on ae N v of c Ba B e au E r rc a R re 19% la sg y' eg e W s ul ito o a firk n t6 e c in 6 d 17% lu fund g p d P e er ap sc s d ee ,nt at i r, 17% nc a fno lp o ud rro . a i8 ng v ll 6 i17% d p 5 m e a 5d r ut t ( iD b c ua y ip e c la a fund 16% ent m ws ib d e in s e,r) v t. 14% he ari ety GICs a400% re insura Note: Row percentages may not add to 100 percent because of rounding. ncer c esear ompach and education. ny producP ts er t ce ha ntatge o gufa elrig aib nt le e 401 e a (k )s pa pe rtic cipa ific nts r wi atth o e o uts f r tan et di ur ng 4 n o 01( n t k) lo he ans inve 38.8 sted capital over the life of the Rela S dt eio cur ns ity hip Ad o mfinis EB trR at I/ ion IC (I 4 Mar0 ch) 1(.k) Av D aila atba le b a ats e w P ww la.ns dol t .go o vt/h ee bs U a/niv pdfe /2 r0 s0 e5 o pe f A nslil 4 onpl 0a 1n (bu k)l P letla inns .pdf two or fewer years b of tenure had account bal Pan erc ce ent s age of l e of ss P tah ran tici pan $10 ts,0 W 00 ith . ou Int 3c Eo qn uittr yas Fund t, lesss than one-fifth of those in Index) incr 10 e0% ased b sou 6.0 r 20s p ces erceo nn t e (F m igployee ures 7 an bed n e 8 11.6% fits ). by all media. 10.2% 78.2% 2013 Form 5500 Young and company stock and company stock and company stock and company stock an T Not all participants are offered this investment option. See Figure 22. h 2 d e0 w V 1an 2 w rw g e.u pea obr r rd 40 tie. d o G t rro g/ ha u pdf tp “ , o /V br nl an y ie 1 gfu s 1pdf ard [pe / 1 r Ce c1 e0 n nt 2 te ] ib. o r Perc fpdf f DC or ent R age e pt la i ofre n ac p m count aern ti tc balanc iR p1.1% 1.2% 1.0% 0.9% e ant s e inv esar t es r ca th ed d . e in A d equit v iai n t lies ab hele ir at ac 12.8% 13.9% 15.5% 14.3% counts” in 2011, down fr 15.8% 15.2% 15.9% 14.7% om 16 percent ld 27 oat aDistributio ns e security indicated. f u on ut cds tas and s ne of Plans, ing ts Participants include the 24.0 million 401(k) plan participants in the year-end 2011 EBRI/ICI 401(k) database. re . A pt re yse eParticipan a nrte -ed n d 2 5 2009, pts, and As e an rcd e t tnt hren e o p dfse , as sets by Plan S trhe ce nt a ws a el sgle as et so o fcr fp ip a tiize la rctal ic ns .................................................................. ip an o aal fnt fy es sres ing w o ho fs uem w ch eprlfeo und yoee b ffs e rin en edef t he lo it a irpns oinv l iw ciees itsh an tm loed ant p ns rline ooput o.................. 8 s up saltsa s. .nd EBRI ing   Source: Tabulations f 20srom a EBRI/ICI P a articipant-Dir8. ect 6% ed Retirement Plan Data Collect 7.6% ion Project. 83.8% Figure A Group mong d 35, tho Zero Ma se ny Rec who Participants include the 26.4 million 401(k) plan participants in the year-end 2013 EBRI/ICI 401(k) database. 1–10% he 60s eld ntly Hired bala >10–20% nced401(k fund 37.>20–30% 3% ) s ,Pl re a greater than $100,000 at c ne Partic ntly>30–40% hir 11. ipants e2% d Figure 6 p Figure 13 a Hold rt>40–50% icip Ba ant lanced Funds y s 8. ear-end in 1% >50–60% 20142014 we ................................................... re>60–70% 9. m 2% ore likely >70–80% to 16. ho 7% ld a >80–90% high 9.1% >90–100% ...... 34 7.3% 1.2% B a O lanur ces, a nd Loan A18. ct39 iv 6% ity in 2007.” Investment Company Institute Research Perspective 14, no. 3, and EBRI bl aLcok > w a o $40, All utc p 000–$60, cer o30 uio n 0% d t s; ba 000 a lanndc r ee s qu a17% m iro en dg qu th a 16% ir s gr terlo yu st p c a 16% ta em n be en ex ts 16% tpl ha at in m ed 81, u 15% st 139 in i tnw co lu po de 19% a ssi n bloet w i17% c24, e h ay 900, s: igh (l605 1 igh 15% ) tthin eigr t ehm 16% e i plm o1, y po er 899, r’t 15% sa 4 n 733, 0 ce o 1(325, kf) p 13% di 039 lv aer n h sifaic s o 12% atin oln y and company stock GICs are guaranteed investment contracts. Of which: lifecycle Of which: target-date funds 30s funds an option are an option16.8% Figure 43 0.9% 1.5% 0.7% 10.4% 10.4% 11.8% 18.3% 72.7% 12.2% 18.9% 11.3% As in previous years, the datab 8% ase fo Lr oay ne aar s a- pe end rcen t2 age 01 of 4 t hs e r ho em w ais ni ntg 4 ha 01 t (p k)a ac rt co ic un ip t ba ant lansc’e asset alloc 27 ation varied considerably with of plan a r $50, eco000 rdk 1. e6% epers aand, ther a a aefore, represents the activity of participants in 401 32.4 (k) plans of varying sizes—from 2014 c ex on ch trCa aan d cge m a t.1638.2 t b a -tri b ra a dd s ge ed e ,( f Fi M ug A nu :ds rN e ( at 21) EiT oFn .s) al >8 , c F B 0 pe o lu ort r sed rce e ynt au -si -en xo p fd f >60 e Erc u c o n 80 per en d no s, tm cent a oifn c d u p R ae rt n s >40 iie c t i ia p n 60 per rc a vn h est t.cent sA m h ven ad ailt ab t m >20 rlo u e re st 40 per at s ( t h www. U cent aIn T s) 80 n i n b 1p t e e 20 per h rrc .e oerU cent n gn t/ ip toed afp t S e h Ze re ts ro a i/r tw8 eac s,6 a co 5nu 5d n t si m bal ila arn fcu en sd s Target-dateNon-target 11%-dateCompany Combination of Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product Minor i nvest EBRI mCHECK OUT EBRI’S WEBSITE! ent opt ddirect ions ar funds an option e not s membe show an option an option an option n; ther rs efa ornd e, r ow other constit percentages will n uen ot add t cieo 100 per s to the informatio cent. Percentages ar n they need an e dol primarily invested in lar-weighted avd erages. undertakes new their 60 Of which: lifecycle Of which: target-date funds Of which: target-date funds Of which: target-date funds s with m Note: Row percentages may not add to 100 percent because of rounding. ore than 20 years No o af ttee s niu s a re m ho ad nt hl ay c p co eu rin od t ib ca al l pr 0.8% 0.7% 0.9% 0.7% anovi ces di o ng c f leurr ss etnt han inform $10 10.6% 11.1% 9.1% 9.4% a,t0ion on a 00. variety of em10.9% 10.5% 10.7% pl 9.7% oyee benefit • M e ore thanNote: Row percentages may not add to 100 percent because of rounding. 70 pe 30s 40srcent of 401(k) pl 11. an 18.4% 7% s included target- 12. d 10.3% a 0% te funds in their in 71.2% 76. v4% estment lineup at year- in 20ht 08 tp , 10 m s0% :/ a/kins ingt i ittut aio t tn ha al. t t va im ng e “ ua th rd e a.lcoow m est /ia lm ev /el pd o f/ bs Her AS v1 e5 d.”p si dn f ce they began tracking the data in 1999. Aon Hewitt 2015 found ti Th ck ee > 2014 d $60, up 000–$80, to EB 2 R1 I/ 000 p IC eI rc 401 e An llt (an k 15% ) d 401(k) Participants Represent a d a re ta m bai a 13% s nee d is at a 14% rte hp arte ls ee vn 13% etl aftro ivm e sy 12% aem ar p-le en o d 17% Range of f 2010 the es th t 14% ir m oa u Job tgeh d y 13% uTenures enair v-eern sd e 13% 2013 of 40 17% 1 b( 13% e kfo ) p re la fa ns 11% ll.i n Ag t y to e a 20 11% r-end c20s on Relationship o c34 e Equities include equity funds, company stock, and the equity portion of balanced funds. ntr 350% at 90.9% i o Of n o wfh ft ic EBRI hh: 1.4% e itr arget a/ICI cco -dat u 401(k) Data n 1.1% e ts funds in b 46. al are an 8% 0.7% base an ced opt fu Plans to t ion nds 0.4% 12. com 1% p h 58, a e U re 003 d niverse o 0.3% with 6. pas 0% f All t y 0.4% e401(k) Pla ar 18, s181, . At774 6. y2% e 0.2% ar ns -e ............................................ nd 2014, 0.2% 1, 10. 350, 5% 79365, perc 780, 0.1% en661 t o 9.f2% rec4.4% ent .... 8 ly   7.8% 1.3% 0 Issue b Brief, nAsset Allocation Distribution of Recently Hired 401(k) Participant Account Balance o. 324 (December). Available at www.ici.org/pdf/per14-03.pdf and Figure r (ec see en U tl.y S 9, S Of which: target-date funds . J beoi en n 90 n apshot of Year-E % test Com ablm ish itteed e on (76 T per na d xc a 401(k en t are an option ion t o 2 f) 0 Pla a0 ll6 4 ). n 0 Account 1(k)-type Balances plans in ex ................................................................... istence in 2013 were 50s established after 1994 [ta............. 14 bulations of Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, 30 401(k) Plan Account Balances Increase With Participant Age and Tenure 27.2 1.0% 14.9% 14.7% . 2012b A tar0. get 4% . - dat Pri e f vund t at 50s C eomp yP pie cal n a lysny rio ebal n ances i Plan tB s por ulle ftun 26.5 fol tin, ids o t18.2% o becom *A as bstra e lc ess f t ba o 26.9 f ocused on gr lan 20c0e6 d F fu onds ow rm 9.9% th and m 5500or sA e f toc nnu ocused on i k as al Rep ncom or71.8% te as i s ( c Vtompa e appr rsio oac n ny hes and 1 s .1 to)c . kW an as d/hing or ton, age. Younger participants tended to favor equity funds and balanced funds, while older participants were more likely inv ofv fer e ery s ed t the security indicated. te ld ao rg in ie ne vcq eost uit rp oie o rresea srs i a,n t iw j ou hile nr rsch isdi t o 9on a c s tp im o en r ac n s w ll eongoi b nt topi o us rhe line dw csld .ng is de EBRI s no e ba .s I — e C sis. q eIw f s uit it iee sh ie a ks a w s t a ve t o a e e r akile ln l ytc a rou yo t u otrfhe ndup of E a inv ge a ee nd sdh t m oer fe BRI r en 2 nt 0 c1 o e4 p t e ts( o io e F h aig nrc is gh uh .r a e et nd 3h0ic i)ns .a lY i ght st oa ung s n,da aesrr w ds, 4e0 lpr 1 l (ao ksm ) upda p otla e n tpu es on blic Definition of 401(k) Plan Account Balance Appendix Figure A1 Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, Equity, bond, money, and/or balanced funds, . 2003. “401(40s k) Plan Asset Alloc 48 atio13. n, 0% Account Balances, and 12. 5% Loan Age G Activ roup ity in 2002 74. .” 6% Investment Company Asse > $80, tp Au 000–$100, llb oclica atio 000 ntio by I n n 14% s v estme 12% nt Op 12% tions a 11% nd Age 11% , Salar 14% y, and12% Plan S11% ize 12% 11% 10% 10% Figure en36, d 2014. Many Rec At ye ea ntly Hired r-end 2014, b b 401(k 18 )p Pla ercn e P ntartic of tipants he ass Hold Target-Date ets in the EBRI/ICIBalanced Funds 401(k) databas...................................... e were invested in target- 35 that 1 Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product 5 percent of part60s iPercentage cipants traded of active 401(k) in their ac 17.6% countsplan parti in 2014. F cipants, urthe 8.9% rmoby years re, Choi eof tenure, t al. 20073.5% 1 fo primarily invested in 2014 und that 401(k) participants p 2014, 14 30s ercen a t llat 85.5% 4 01( yeakr)- epnla T d 2.8% n enur 2014 s he ( eld y(ear Fi a2.0% g s tu o )rte a l 47) of $ . 4. 1.4% 6 H o tr w illio eve n rin ,0.8% no as t sa ell tsp , aar0.9% nd tic ip the ant d sa ha t2.2% ab va es a ec rce ep srs0.2% e tso e nt 40 s1 a (k b)o 0.2% ut pla 42 n lo pa ens rce 0.2% — nfta o ct fo trhing at 3.7% in all passes t 100 o he t r f are get wer dat to Company Stock in 401(k) Plans With Company Stock, by Participant Age e of the fund, w1 hi0 ch i 1s to usual 50 ly0 included in the fund’ 501 s nam to 1,0 e. 00 1,001 to 5,000 >5,000 hire and company stock, and GICs and company stock, and GICs d participants hos ld toc ing k an bad/ laor nc and/or and/or ed fund onl s yha equ d m ityore Appendix Figure A3 tha an s on 90l yp eq erc uie ty nt of th on eily r ac equi co ty unt balan tar cget e in -d vat es e te fu dnd in s ,b * al an an d/c or ed Equity, bond, money, and/or balanced funds, www 90.e %bri.org/pdf/briefspdf 17% /EBRI_IB_12a-2008.P perc df ent age of Percentage of U Co . S O n Age a .tg D hrer e epa s s st nird Tenure of 401(k) Plan Participa o a tn m blae en l- B vta o uld u f L g eEBRI has earned widespr fund e atb O orffi F s i c or nc em . lu 2015a 5 b b b bd5 e 0s0 s yurve d nt . C a he tB a yO t f si,c’or s s G n t 2 20 udi tIs C 0 15 .................................................................................... s 1 e,s3 w , l ]), or Lihi o tead r in c gh c g a (2 t-iT on oe ) t ns ,egar r l m h ies e g t P i o e srlm d as o f a atjp ie on a p lc oy toio e rnd r te ns fo on life o o gul l o y r r f fi S aeo tc ix on c ee in a dtl a- lffe y S in j e coi cc o tur in m ng e eit e s dy t :m ec h A pl eu d p o rd y iltit a e ie n e io s be (w n“a w ne l hre I a fnf itpp ..................... 8 th pl o eed” r ram on nsa w , w h tio itih s h n ile a or her  Average 401(k) plan account balance, by age and tenure, 2014 to inv De Cs:t U in .Sf.i xe D e dp -EBRI inc arto m Am llee nt maintains an Average Asset Allocation of 401(k) Plan Accounts, by Participant Age s o efc ur Lait bie os r, sE uc d mh analy plo as y e be z 15.8% o e nd Bs e ne the mo fund fitss ,S G e st c Iu C comp rsit a ynd Are d o m 10.2% hen the inir s si ts rve t aatb io databa le n -( vM alue ar 22.1 se c h) fuof .nd 74.0% A401(k) v s,a ila or bm le -o type a ne t y prog fundram s (Fig s ur in the e 21). In a givecn age group 50s , long Pe lans r tenure tends 12. to 8% mean that a P hig arthe icipant r p 11. esrc 9% entage of participan 75. ts4% wilA l sse havte s account balances p un ader rt and company stock, and GICs and company stock, and GICs and company stock, and GICs and company stock, and GICs i> c$100, st ipa an nt 000 dis 25 n w g, 0% e a re n d o slig th ht er ly w 14% m ise o rae dv and/or and/or and/or and/or lik a 10% n ec ly e t to h eho i 10% nld ter aest t le s o 9% asft f s uo nm ds 9% e, t eh qei uit r ie sh 11% sa raeh nd o lm d 10% er uc s, h di m ro ec 9% re to lik rs,e a ly n 9% d a to ha dviv ser e9% hig s. Ih CIc ’so U 7% nc .S e.nt fund rat 7% io ns in 47 VanD Ithe security indicated. n 17 es rhe t300% itu i,te 80 J% aP ce krs Lp . e 2c0t0 iv2e. 9 “T , h ne o. Ro 5, le a n od f C Eo Bm RI pa Is ny su e S tB ori ck e fin , n4 o0 . 12(6 k1 ) P (S laens pt.e ”m W breitr) te . n Av stai altab em lee nt at fw ow r t w he .ic iH .o orus g/e pdf Ed /pe uca r0 tio 9-n and GICs are guar 20 anteed investment contracts. 26.8 0–2 b 69.7% 11.3% 4.6% 16.32.0% 2.2% 2.7% 6.8% 0.7% A 40s s a dca rtos e 82.3% sf und secs ti o an nd , 3.4% b or al 4 8 as nc n pa e ed p rc s e h f2.7% un n ot tds , oof f 4 t0 he 1( k ie 2.0% nv )nt p eir s ar e tm t p ient co ip pan ula 1.2% ts tio in n inv to hfe es 4 d 1.3% 0 tm a 1t en (ab k) ta p sla e n h2.3% e p 16.0 iln a dv r tt es iarg c 30.1 ip tma e en n t-0.3% ttd sa , tte h n e fon- und data tsa 0.3% r.b g A et als s-e da o in k te no clud bal w 0.2% anc n e sa 4 s ed 0lif 1 fe un (k c) y ds 4.0% cle Figure ra rP el lan y m I- nves 10, sa pde e Dist c tm if cic ent h in aribution of 401(k n Opt fge ors a m ions aftt io er Of n t f o ered hn e Asset Allocation to Equities Varied Widely Among Participants lo in by a i) Plan Acco tn iP a p llan po rov in iPercentage of recently hired participants in plans stio on f en s unt Ba isr o alvlm alances, ila en 15.1 btle . ( fF plans oo by Size rr t h ho eu 21% m seh ao jo f o Acc 2012 rld ity 21% su o ount Ba rfv t part e hye r p ic 60 e ilpant slance a sul nt ss s in fr t ........................................... oh m e fa sallm 2 P p 0 erc 21% le 1 ( 5 ent r inec age fl lu ed cof in ting g as v ho sir et tu us sae lly ho ..... 16 alll dso’ f 4 t Ao 0 sts 1 al e (.k t )a llo p Ta h $40, c re t aic td io ip 000 at n aab nt als as s ow e v it al ah rsie o and sc o w v w iteh it rs ho p 4 aut 5 rt ic p lo ip ea rc a n nt ea n c ta cg o ee fs Median T ; Num s t h F in e ig u t ur ber he ne iv d e 2 of enure: rs a 3t e a d Plan b e oa m fs 8 o ac eYears Par ns , to it vnly re ta ic t4 e ipants 1 0 s7 1 t (his p ke ) rc p w lean it nh t p h aar n adta ic lna o ip an ly an s st is s o u o an tfs a d tan s 1 se 5 dt in pag ello rc at c e a n ytte io ar on f- b al ey n l d fund other stable-value funds other stable value funds and company stock, and GICs EBRI’s website is easy to use and packe s, compared with 77 perce and/or nt inEBRI 2013, ’s Bl 61og p esruppl cene t m in e nt 2s 009, d with useful information! Look for our re 1.3% 1.7% 43 gul peracr publ ent in ic2a 21% t0ions 0621.7% 29.3% ,, ao nd ffe r7 ing pe r cc o 14.0 e m nm t e in n t1998 ary 38.9% 29.8% on que (Figus retions 37) . d Appendix Figure A1 35.1 21% 60s o gu wa Sou n o rarn ce: rt t e T hr e ( ab outug ly atpi io h a nc sa fut rlom lworl yo EBR by ma d. a t I/iIn c CIts co i e I Par nnr su tio cr il pmputer a lan m ntc e -D e c nt ire) ct o .ed R I m simul n e pa etin irPercentage of account balances, 2009 t ey h ma o e etion r nr e t Pl av an ba eanaly D ntn a, tk a j C )o t ob s lo l t ee ct e pr s io nur n o on So Pr vie oj d w ect e .o ben cial uldef no Secu it p t a ay crity m cur en areform t te s ly a r cceo f r land retireme e di cn t a g t ctoua th l 4 e 0 pl 1a nt (n k) a income a p t bo lan ok vad lu equa e. cy ( December). Wa 60s shington, DC: Congres 11. sio 7% nal BAppendix Figure A3 udget Of Tenure (years) fice. A 11. va8% ilable at www.cbo.go 76. v/5% sites/default/files/114th- About C www hange . Because f dol.g s in Accou ov ew /e pl b ans f sa/al p n ld it B nt f/ o t 2 alances hi 0s0 cat 6p egor ens ...................................................................................................................... y,io these per nplanb cent ulle ages m tin.p ay d be heav f ily influenced by a few outliers. 12  For exam 80 p % le, among Age Group participants in their 2>0–50 percent 0s, the average allo29% ca >50–90 percent tion to equity and balan >90 percent ced funds was about e g mq rem e uit a other stable value funds other stable value funds other stable value funds other stable value funds tber ie ers .s t h A m atn an ye $1 ag ar00, e - t end o 00 tal > 0. 2–5 2 as 0 Fo 1s4 er,t se 8 x op a f $ e m r16. c pe l66. e nt 9 , 9% 20 to rillio f 4 p0 e n1 rc a (e n kn ) d t s p o la e 12. fr n vpe 0% a p m r atric o tiric p eip t ant a 1.3% 1.8% 1.7% 1.4% hn asn t s 9 in in 4. 0t m 5% he the illio iri r6 n 0 2 s 0 U s.w Sh i.t a,b a h sh 2. df 5% aiv no 30.2% 24.7% 31.6% 24.3% reh e e too q lder uit 10ie s y ( se ,s a ee 3. cro 0% sm Bou p fr a h te ra 20% e nur > m d 20 Y 38.8% 33.2% 32.2% 39.0% , B w e it og ear ha h 3.d s 6% d 1 a 2 n a , a c pceo n runt c de nt 6.3% 1.2% Figure 37, Many Rec an or ently Hired ganization that “tells it like it is 401(k) Participants Hold High Concentr ,” ations in Balanced Funds .............................. 37 05. W 49 op rk dffo an rce 18 d C w ow mw m .e itbr teie a.o S ru g/ bpdf coam /br miie ttfe spdf e on /0 Em 903 pi43.7 b. loye pdf r- E mployee Relations Hearing on “En 43.5 ron and Beyond: Enhancing 50s E Aquit g82.6% e y G , rbond, S ou our pc e: m 3.6% T oney, abulat and/ ionsor 2.9% Asset allocation distribution of 401(k) participant account balance from balanc EBRed I/ICfI2.3% unds Participant-D1.3% irected 64. Ret 4% irem 1.3% ent Plan Dat 2.1% a Col40. lec5% tion P 0.3% roject. 0.3% 33.2% 0.2% 3.1% funds, these funds are designe re offering company stock as an investment option, dc e to ive od fffrom er a ne divw esr re sifport ie45.3 d e prs o,r p tfol olio icy m tha ake t rs au , taonm d ot atihe 2014 cars lly . Trh ee ba ElBRI ance D s at to abook be mon or Em e fopl cus oye ee d on H p t sen he a or N ld s t tot iim c e m e:ip n, T en aa h l le t S nt tp t a en ls o r a u a w n w rh, e v s aho )r ar .d J S i a ab a a o c lr n e i k m e d s V e g c y p a en o onD ung l er n af al ns ie de lyr y h a w ear nnd e c it s w i, e i ho a t or n ho ut nd k 4 in t s g 0 hi at e C 1 a cu s (w k i ro ) rho nfo r pl en l Q t em a raui m n re s, pc a l oy k t ne ise .o er n a 2 ,w e an 0 H 0 d t tro 0 e ol h c . ud t she “ l m e a 4 n s ay 0 ir , s ov 1 iB fi j(o ur er e kb d ) st ha s a at P ,e y lm sa a ha ear s n , B w s of A v oe s ing gs p ll d e ara a a t ti n, s c A i p lo o a llo atld a ind on n ce iar p n S t trio p hc o e a hr n, v 401( ris ta iiA s c o ks ip c n i ) p 2 ca lo an f a 0 n unt 1 .ts 6 n .) y aB nd pa 46.4 alr a t tn iho ccip esa se,nt w a ind ho n t he L ha o a v pn e la n ha been s 2014. 401(k) p Of which: lifecycle Of which: target-date funds O lann s. ave rT ag he e ,d o 20s is 48.5 vte rib r Average Asset Allocation of 401(k) Plan Accounts, by Participant Age funds an option tut he io p n as of are an option t a 1s 9s e ytesar , p s,a r 11.3% am ticip on ag nt p sa , ra tnd icip p ala ntns s w in it 8.8% h the 7.8 lo adns at a ob ua ts st ea nd foring 20,1 79.9% a 4b is out sim 14 il ap re tro c e the nt o univ f the er se of inve other stable value funds stment70 o% ptions and also by p Non-Target-date articip 19% ant age. Because asse 1.1% 1.3% 1.0% t allocation is influen16.3% 23.2% 14.3% ced by the investment 24.6% 29.7% 19.7% options Plan Concs ent250% rNot atio e: “n Funds” is 10 hig are incl he A ude m uni llAsset Allocation to Equities Varied Widely Among 401(k) Plan Participants st que. a aut m ual 7.0 o fng unds, r a a ae bank col centlylect hi11. ivre t ed 1% rust psa , lrit fe i icnsur ipan ance separ ts with atte account a 10. rg7% et-d s,at and any e fu 50n s pool ds;ed i atnv yest ear 78. ment -e 2% n pr d oduct 2014, prim a78 rily percent of a 6.5 partic c these special features: ip on ag tio rens.s -2015-2016/reports/51047-SSUpda5.9 te-2.pdf 5.9 > 5.5 5–10 56.7% 5.2 a 14.1% 5.2% 4. b 6% 5.5% 5.7% 6.8% 1.4% 80 perc Of which: target-date funds Of which: target-date funds Of which: lifecycle Of which: target-date funds ent of asAge Group sets, com funds an option pared0–2 wi an option an option an option th 54.9 about 6 >2–5 0 percent o>5–10 f assets amo>10–20 ng partici>p 10–20 Y an>20–30 ts in ear th seir 60s. >30 Younger participants balances20s i n e Of x c w ehsic s h: o f ta 30s $10 rget 88.7 -dat 0,% 000 e funds in 2014 are an (Fi 73 opt g .9 u15.5% % ion re 15). Howe6 ve .6 1.3% 1.4% 1.0% 1.1% r% , 46 p 10.1% ercent a o3 f. 7 p% ar 4.2 tic 16.1% 16.4% 16.7% 23.0% ipants 74.4% in their 60 4s .6 w %it 18.5% 29.0% 22.0% 20.7% h between 20 o Sc f h 4r0 a1 s cs ( 2015) k) plan . 18% particip 18% ants in theair Be 60 nse.fi A tsb iosu at18% s tth are tise ti-cq a18% lu r art 46. efee 0% rrs enc oef w 4ork on e 01( bk) pm lan pl 30. oy pa 5% ert e be icip nan efitt prog s in tra hm eisr a 2nd w 0 24. s h 9% ork ad m forc ore e- rt el hat an ed 80 15 60s Work 82.8% er Retirem 3.3% ent Secu2.7% rity” (Febru 2.3% ary 13). A1.3% vailable at1.2% w19 ww.ebri.2.3% org/pdf/pu 0.3% blications/0.3% testimony/0.2% t133.pdf 3.3% Figure Year-End 11, 702014 Snapshot o % Age Composition f 401(k) of Selected to equities, Partic 40 ipants’ Account 1(k by age, percentage of participants, ) Plan Acco >30 Years Balances unt Balance C ............................................................... ategories 2009 ................................................. 16.0 ........... 12 .... 16   invested in the security indicated. Percentage of account balances, 2.1 GICs /Stable- 2012 2.0 with All in t Age he co Of which: target-date funds ir m c e 20 ur o 0% r ve e Equity nt r t ie m m ep . lo Target-date yers for m are an option any Balanced yePercentage of Account Balance Invested in Company Stock ars. The Bond se annua Money l updates of the data Company base provide snapshots of 401(k) plan an o So All ut A m cse r ttia vnd ec ityo i ng irn d l k199 o eeper an b 8. based on the f ”s a lIn su anc v pe e pl s .y T tAsset allocation distribution of 401(k) participant account balances m in hi e g d sn m ta Co taay w m und acts er pan ee u . A rysn tIn a as the Bylaws state: bl ts et e t t ithe u ot pr num e P oe vrs ib de e pr e o cc 100% 100% 0.8% ot f p m ivpl e la et n 9s , e o naffe o. sset r5in a (gJa l l lo o nc a u a na tsiro ( y 10.5% 100% 100% n ) o , rdet p an aa d rit li o E ciB n pR a cI nt er Is st e a siu ln ie g po ib Blri o e fo le 16.0% 100% 100% efd a ,r l no o ss a . et ns 218 c ) lasses Per r a pe v lan m acila a s entage of in c c c cb aing le s re t o a p c p oca rt o rplans e un tidc t ip b b y aa n t 40s la h tse n , cF U eig . S ru e . rm D e a e2ine p4art p drm e unp s ee nnt ta o id s f.a 17.3% Ls U ab s.e So t. r a D( llo e Fp ic g a au rttrio m en e 4nt b ).y o s fa la L9.8% arb yo rra d ng atea aind ndic ba yt e inv tha e 40s 73.0% stt m loe ant n aom ptoio unt nss . S te and lar y to be a recently hired participants hold 22% ing target-da 66.4 te funds held more than 90 percent of their account balance in target-date . 2012c. Priva>t10–20 e Pensio 17% n Pla44. n B 4% ulletin, Abst13. rac 1% t of 2007 For 6. m 1% 5500 Annu6. al 9% Reports (Ve9. rs9% ion 1.5). Wa9. shing 9% ton, 7.9% 1.8% 30s 86.7% 63.6% 7.1% 4.8 40 % s 43% 11.1% Figure 34 All All All All 38, Many Recently Hired 401(k) Participants Hold High Concentrations in Target-Date Funds .......................... 38 E . quit 20 y0 , 4 bond, a. “4 m 0oney, 1(k) P and/ lan or aAbalanc sseti ssu Aed llo es. fcunds a tio,n, Account Balanc 100% 100% 100% 100% es, and Loan Activity100% 100% 100% 100% in 2003.” Investment100% 100% 100% 100% 50s Compancy had consistently hig 20sher allocat$4,940 ions tP o er tcaent rge age of $11,597 t-date A cfc uount nds B .$18,789 A alanc tare I ge nv t-es dat ted i e, n N or on- lifeT car yc get le,- D fat und e B al pur anc sue ed F s unds a long-term p a E All nd eB rc R e 3n 0 cIt /I yo Age e 84.3% fa CI t 60 rh s% e 401( o ir f ac te 0nu c 3.0% ou rk 50s e n ) tw Da b aitah lat 2.4% nc t he aeir b s a,c a c inv ur se r e es nt 1.8% te d e m in p 16.9% ae lo Percentage of Account Balance Invested in Equities qy uit e1.0% rie ha s,d c o am ccp oa 1.1% unt red b w a9.3% lit ah nc le 2.0% es ss g tre ha at n e bo r ne 0.3% th-an qua $ 73.8% r1t0 e0 r 0.2% ,o 0f0 4 00 . 1 T(h ke ) p p 0.2% e larc n ep natr ag ticeip 3.7% ants 28 For the 200% a $30, ge 000 dist 16% ributionFunds of 40 74.8 1(kNon-Target-Date ) plan participants and ass 16% ets at year-end 2014, see Figure 5. Total Group Funds 50 16% Funds Funds Funds Value Funds 0–2 Years Stock Other Unknown • EBRI’s entire library of re 43 search publications starts at the main Web page. Click on EBRI All Of which: lifecycle Of which: target date funds b funds an option are >20–30 Years an option 75.5% 72.4% 100% 18.1 75.2% 74.0% 100% 75.1% 72.6% 100% f 6 bec ac o rI c o to a i( u n u s po F s e o ne e tb so b rru ssi m am a lbl an o ry e e re o c ) t pl .e h a s A a fn , v t s m t t as a hh ila ei >s es 20–30 a re b c y te o le h lal ien a a llo der v tt e c sw o at ., T w l fio fo h w er n n e f .,ger ed ito equities, 35. can iin . a - o a 3% d tl pl ren g/ E lo a B u pdf an n R re l I / d w o /a Ia pe C by age, percentage of participants, cnt Io ,i 4 rv 0 rbu ik 0 11. t 9er y 1 -t 05. ( n s 3% a kc ) o a da ro p p cc d s a u f ts r a m tan ba w ic uiild pa d se a e tw ed n i c t n w 6. h ro D cw 8% la u s C .d t de s e pl br ss o a e ak ic n .en o t n ia ro lg/ y o sn set pl u s pdf ta o 7. a s ( n 2012 f/ 7% l s f br p e. oa a o g. ie rt n rf ,.iw s i c I pdf n ih tp a i ian cs / h li pr 0 t a s k 2 14. o .t e 0 f l lH i0 y ea t 2% - t io b. sh h w stpdf a a 9 etrv t i0 n e h p g r, iser pl o th c a m 13. e en n is )c t4% s bef ro o iofsn o s a is - rle l pl th ae n 9.9% 1.4% neglig EBRI make ible 60 40s % portion o s information freel f plan aassets.a a a 55 y av .8%ailable to al 9.3l% . 6.3% 12.3% inf o Factors That A r m a.t io 2015b n is a . vC ai ffect BlO ab ’s 60s l 401(k) e 2015 83 fo.7 r % a Ls o Pu n articipants’ Ac b gs-e Tte o rm f p P ar ro tijc ei16.4% count Ba c ptan ion ts s ifn o r lances th Seo c 2F i0 al i..................................................................... 1 gur 4 S eEce 3 B uR ri 8.3% It/ yI:CI Su4p0p1le (k m ) ednat tal ab D aat s75.3% ea . P (D art ec ic eim pan betr )as . W sea t s .............. 12 al hlio nc ga to tin o,n   fundD s C ( and F : ig Uur .GI Se .Cs D 3e 8 p and/ ).art or m Foe ot rt nt her y -o os fne table La p be o value rrc, eE nt m f unds p olo f ryeece e n Bte ly ne hi fit re sd S p ea cu rtric itip y a An dtm s c,d ini hosld tring atio no n (nM –a tar rcg h) e.t -A dv at ae ila b bal lean ac t ed funds had more This upda Group te extenZero ds previ1–10% ous findin 11–20% gs from t 21–30% he projec 31–40% t fo 32. r 1 8% 99 41–50% 6 thr 15% ough 51–60% 2013 26. . F61–70% 8% or year-en 71–80% d 2013 r 81–90% esu 25. lts, 3% s91–100% ee Holden et al. Of which: target date funds Of which: target date funds Of which: target date funds Of which: lifecycle “In all its activities -1.6 funds an option an option an option an option , the Institute shall 67.4% 72.3% 76.9% 70.2% 32.8 69.5% 74.8% 73.3% 71.6% 66.0% 71.7% 68.0% 74.5% Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project Age Group Age Group Zero >0–50 per 1–20% cent 5% >20–40% >50–90 per >40–60% cent >60–80% >90 per -2.0cent >80–100% inv Figure e s In t m s12, .te i2 tnt u 0 Te t1 e s0 tn P .r a ure Com e “tT rs ehe g py e ,c I m tus ivp p ing ea ositi c 1t 0 a, o o m fn n of o. A ix ut a,c 2 o Sel o, fm a an a s e s t d cte ic e E t E d B cnr 40 R laI o ss I 1(k lle s m s su e )t e nt ha Plan B in tri fe A o Fi 4 fll ,0 ccount B gu o 1 no w (r k .e a ) 2 51 P p 7la GICs r2e n a d (s lanc A e ug o t/Stable- e n re Cate u m Fsut ine t).u r d A 30 e gories vr sa Re eila allo tb ir ................................................. 17 le e ca m a taio e t nt n, w w A ty w cp c.um ic ica i.lly o ul ra g/ rte io pdf bns ala /:pe nAcr ing 1 S0 im - 02. tul o as p thif io dfn t 10 inc0 reas20s es to 55 38.3% Equity pe 30s rcent Target-Date f24.6% or pa $12,438 rticipaBalanced nt 9.7% s in t $24,269 heir 6Bond 7.7% 0s with $44,727 Money m 3.5% ore than 5.5% 3 $67,416 0 years ofCompany t7.2% enure. 1.4% 2.1% 100% in • the Air m 6a 0jo s. rity of ne Allw or recent hires inv 14.9% ested their 401(k)9.4% assets in balanced f 75.7% unds, including target- -4.2 Age an Of which: target date funds d 50s Tenure of >30 40 14% 1(k) Pla 27. are an P 6% an option ar52 tic .1i% p Percentage of Account Balance Invested in Equities ant 10. s 0% 7.8% 7.4% 14%7.8%9.6% 20.9% 12.6% 60s 14.3% 9.0% 1.2% a Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. Issue Briefs EBRI assume and 80.4% s EBRI Notes a public service re for our in-depth and sponsibility 71.3% to 23.8 make nonpartisan pe its findings 14% 72.5% co riodicals. mpletely accessible 72.0% at www.ebri.org sectional analysis is not well suited to addressing the qFi ueg su tio re n 2 of6 the impact of participation in 401(k) plans over time. a s 35 S in m ss ou tra et olldu r ,s c c ac e s o ts U iu o a ln . d b 50 S o n Of .% G d fe 4 T w o i0 den h v -1 y 1 ic e 0( pe r h: k nm t) i ft pl s iaed. e rget of a nt n A I D f -dat nea c a a c b, e t ddi o t cu unt a fr unds es. t io an H b,i so lare o itw ym O ev an e r ffi er opt c ec ,e su ion 1 orc 9 dk h 9 D 7 e fo ep C und er pla s n m ta ha ary rta m pr ng o oem v re id t en e ha a ts d n 9 g dien t5 io er per naal lcldet y en di ta o d n il o cf 4 o v0 t er per 1 t (k im )m pl e w ita em nitsh t pl a ho a ly ta o ee g;f c i fer n o 2 l no t0 ra i1 bu n 4s h , t aioand a s t also D va Cr:ie Cso 20s w ng itrh espsla 73.1% ion na sl ize Bud (F 4.3% g ig eur t O e f2 fic 5 4.4% e , .t o Ap v a pila ane 3.5% ble l) ,a b t ut w w 2.5% m w u 23. .c ch b 6% o o.fg 1.7% t ohe v/ si vta ers/ ia1.8% d tio efn au c 19. la tn /3% fi0.8% b lees /e1 > xp 1 5–10 Y 4la th 0.6% ine -c ear o dn b sgyre d 0.4% sif s18. f-e 2015 r3% enc-e6.8% s in the Figure tha The analysis includes the 24.9 million participants in the year-end 2014 EBRI/ICI 401(k) database. n 90 39, pe Asset Allocatio rcent of their an c D coiunt stribution 401( balanc k) of e P 4 inv l01(k an est C e )d h Plan in artact Acc hoser eo unt Ba fiund stics, s at lance 2013 b ye ya t P ro -e l Balanc an nd A 2014. sset ed Fu 35 Bs, ands Amon la 2014 nced fung R d, teacently Hir rget-datee fd und, Defi ww nition w 150% .d15 o of l. 0% go 4v01(k / 20s eb20s s)a Plan /PDF Acc /200 o13.6% 7 unt Ba pCont ensio alance cnp t E 37. laBRI .......................................................................................................... 12 nb 5% 3.3% ulle Publ tin.icpadtifons 3.6% ,I (2 CI R 02) 659 es 8. ea 4% rc-h0670; 6.5% Pers pec fax publ tive17.5% (w ica wtiw 54. on .i orde c 1% i.org/rs 55.3% r t esea o (20 rch2) 775 /persp-ec 6312. tive )   20 S 1ee Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. Source: Tabulations from EBRI/ICI 401(k) Participant-Directed Retirement Plan Data Collection Project. Source: Tabulations from EBRI/ICI 401(k) Participant-Directed Retirement Plan Data Collection Project. Source: Tabulations from EBRI/ICI 401(k) Participant-Directed Retirement Plan Data Collection Project. 4. R en esu dnlo ts f te o1r1 ea forrli er ad y di Funds eta io rn s aalr det e av aa il o ilan bl tea irn g e eta -d rla ier te i fund ssues s o . f Stock Total a a Age Gro 30s 50%u 48.2% Funds d 14.1% LoFunds a 7.1% ns F 13%rom 401 Funds 9.1%(k) Pl Funds 3.8% ans Ten Value Funds 5.7% ded to Be S 7.9% mall 13% Other 2.1% Unknown 2.1% 100% S an tud d w y w Ba ws.e ed br o i.n orP g/ lapdf n D/e br sig iefn spdf Mo/ d0 if8 ic 0a4tiio b1 ns .pdf of L arge Plan Sp18% onsors.” EBRI Issue Brief, no. 341 (April). Available at its focus 60s from growth to income as the fu48 nd .1 ap % proaches an 7d .9 % passes its targ 7e .8 t % date. At year-end 12014 2.0%, 18 percent of Age Group 40s 75.7% $19,697 Zero $37,199 1–20% $66,173 >20–40% $114,997 >40–60% $159,118 >60–80% 30.5 >80–100% A lifecycle fund typically rebalances to an increasingly conservative portfolio as it approaches and passes the target date o d A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approac ate funds. Fofunction strictly in an objective and r All example, at y 46. ear 8% -end 2014, 12. tw1% o-thirds of re6. ce 0% ntly hired 20 p sa 6.r2% ticipants held 10. f the fund, which b 5% ala hes nced fund 9.2% s in their 7.8% 1.3% b Inve Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. stment Co — mso that all deci panAge Group y Institute.2013 sQ io uns artF that eor rlym S relate to emp >0–50 percent 5500 upple10 me % ntary loyee Data. 30% ben >50–90 percent Waefits, shingwheth ton, DC er : m Inade ves >90 percent tme in Cong nt Comp ress anor bo y Insti ard tute room . s or 401 a a a a (k) Plan Loan Activity Varies With Participant Age, Tenure, Account Bala 23.0 nce, and Salary Equity 30s , bond, 70.8% money, and/ 6.1% or Abalanc sset 5.5% A ed lloca funds,4.1% tion 12% Dis 2.5% tributio 1.8% n of 40 1.6% 1(k) P0.8% articipa 0.6% nt 0.4% 12% 5.8% a lC ae Row percentages may not add to 100 percent because of rounding. d n rao d d o ss itts o io f ts ne na en eT c l w i ot p tio nfo lal a er ns n P e p rl m d an A c ah a r esi ttaiic o ng sgn in fo s pet e a ed nt s in r t w s o c o io tm be h m e a p b su n o oa p slit pl a ut io nc S em s ubs n tea T d en o nd c ot fund v ri te al ia pt ng rl P t itons l lo s ians m o r o a t e e tn. s o hb ul er E etB c eem a d T Rus ot Ii I n t p al e s lo s P he u t yhe ar e B er ir t p i r cs rie ilpa e a ef c le n ls nt a s. ca s s t re s io P ifi i a n c rnc ta o it c lfiude i o pa d n i an d tT nt a to a s’ o s tp a a pa r lt A c o ac v rt rsse o ge id of ue n t ts* -rtE d s ba BRI a a te nd la fund m n c se e am s t m A sbe v .p h I er le a rs n age A thi c pr o iden p, f ed or a pcla c a ce ount tns e o s t pa fu h t B s e rt aing al 4 r of g a0 et nc a 1a- (e k) A lifecycle fund typically rebalances to an increasingly conservative portfolio as the target date of the fund, which is usua A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approac A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approac A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approac 30s30s 10.8% 38.9% 4.2% 5.3% 25.1%9.0% 17.2 19.2% 35.9% lly included in 51.5% hes hes hes inv The e s 2016/ dtat mab eParticipa nt r ae so p ep o tirn io tc sns ln /510 uts, by Participant A d o efsf47 e4r- 0 eS 1 dup ( b k) y p le p part m lan ei c nt sip p a g a o le _ n nD .............................................................................................. tsso a rs t ac a.-ro 2 F-s o Co sr 28.4 a e rre xw am c id te e pd lran e .x , ls tg h xe e o pfe r ag ceent an agde to efn u pre lan ga ro ss ue pts s. inv At e ys eta erd - ein ndc o 2014, m .................. 39 pany 50 s tpoecrk c ent and no40s 20s n–$20, targ000 e30.7% 47.2% t-date 20s b 19.1 alan 10.2% 38.4% ced fund u7.7% 6.8% se varie 11.2% d so 9.8% 6.4% mewhat4.2% 1.9% by age am 8.1% 3.1% 8.1% ong recently 9.3% 5.5% hired p 80.7% art 3.4% 2.6% icipants— 3.0% 1.8% recently100% 100% hired Figure and a EBR 13, I I 401(k) Plan Account Bala ssue Brief (www.ebriP .or eg rc /p en u nces I b ta lig ca et n io on crease With f el s/iib g). ib le parParticipant ticipants, by Age and Tenure participant age .............................................. , 2014 24.4 ... 17 C S Re e hva le a n ral tg io e re n ss c in o hrd ip C k B o ee n e pc tin e w g n e t o e rrg a nt an A io c iz n c at s ou in ion n Eq st B pro uit av la id ie n es c d S e re si a nc con rd e d S st h oa n el a ac Fr in ty iv aenc par iatli C cipran isis ts i n 401(k) plans at year-end 2014. These Size 80 of 401(k OA rd ll40e % ) Plan rs/ -20 20s Acco 8unt Balances 3.3% 8.9% .......................................................................................... 58.7% 1.2% 2.2% 7.9% 4.7%6.1% 14.9% 68.2% 10 .......................... 12 .6% 11%   c 401(w k)w a w s.se ebr tsi .io nr g/ thSo e pdf ud rce a /br t : Tab aib ea fu s s lpdf a e ti on we / s from EBRI/ICI Parti ErB eR iI n_vIe Bs_ te 0d 4 -i2010 n ci ptan ar t-Di _N ge recte to-341_ da d Re te tiA freme und uto n-s t Pl E , nr up anl. Data p fr dof Col m le 17 ction p Proj ercee ct. nt at year-end 2013 (the year-end is usually included in the fund’s name. and passes the target date of the fund, which is usually included in the fund’s name. A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approac families’ homes, are based on the highest quality, most dependable information. EBRI’s Web hes site posts 401( • 40 Visit EBRI’s blog. k) % plan a50s ccounts. Bal$27,091 anced funds $47,040 comprised 42 $73,857 percent of t$131,749 he account b$222,887 alance 40s s o 21 f re$272,399 cently hired 401(k) plan 36 A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approac and 100% 40s company 70.9% stoc 30s k 6.3% 27% $199 a 5.5% nnua 4.1% l 15.0% subscript 2.6% ion 1. 33.7 t 0% o EB 1.8% RI Not 8.9% es 1.5% and E 16. BR 8% I Is 0.8% sue Brie 0.6% 76.2% fs. Chan hes and passes the target date o 0.4% ge 18. of2% Addr 5.5% ess: EBRI, f $0–$250,000 18,399 116,711 $1,534,276,626 $13,146 40s 11.2% 5.4% 6.4% 10.4%>2–5 Year 27.2% s 39.4% g i v e n p .ro 2012d vider .v P ary riv a a f40s ro tem P e yns e A aic r ocou n toP y la e n n atr B B an ulle a dlanc t34. b in, e7% c A au e b t s ste o r a E 4c0tq 1 o (u fk i)2 t 0 y p0 Fu art 8 iF cnd o ip 25. ran m s 2% t,5 s b 5 j0 o y0 i P n A o a nnu r rt le icipant a av l Re e ppla on r A ts 40. s.g (1% e V In er sad ion dit 1i.o2n),. tW he a sdhing atabta os n, e d pa l aA tn e the fund’s name, approaches. and passes the target date of the fund, which is usually included in the fund’s name. and passes the target date of the fund, which is usually included in the fund’s name. and passes the target date of the fund, which is usually included in the fund’s name. d fund d ar ite 50s 30s io no na uts l i i enc nfo a 39.0% 42.4% lnd ud rm i ea nv dunbiased manner and not as an advocate t i ie o n t s n fo tm hi 23.8% 8.9% e s r nt s ao na im n le y ta b sirsa g ,l w et a 19.9 nc -6.4% 6.9% hi da e cd t h fo e f fund u cn us ds se r s 11.9% w e 8.4% o sas ul n 4 tree 0 dv 1 ii( s n 2.8% 5.4% k ed u )t b heaipw r la rnc e ac re d la 13.2% f 4.2% a sr m so ifi o m c unt 2 at0 io s0 .n i 7 f nt o 10.2% 6.1% o rw ta ar rd, get w -d ha i2.9% 3.1% lte i e fund nciden s. I c 1.5% 2.8% e o ncifden noc ne – 100% 100% o tafr t ga et rg -da et-te r o In is f e p tb b s h a e rw t i2 it c0 h ip 1a p 4n la E tn sB w R size I/ erIC e , in I in 4p t0he a 1r(tir k , )b 3 d e 0at c sa ab o us r as e 4 0e fs e,, w 8 w 7 shile m pe arc ll 1e p 3n l a p tns eorc f o e pfn a fe trt ro ie cfd i p p c an art om tiscp iw p aan n ey re t s s i tn w o ce pkre l an a s is n a o tn h ffe in eiri r vn e 2g s 0 ts lm o , an e 2nt 6s . p oH epro tcio w en n. etv e F we r, or ras e e xa in has m the p b le ir e, e 5 2 n0 s, participants in the 40ir 1( R k2 o )w Loan a 0 p ser w cen er s tag e a P em s m er oay c re ent n lik ot age ae dd ly t 36 ot 10 o 0b pe e rhig cent b hly ec ac us o en of c re ont unr da int g.e P der in cens tag uc es 30s h af reund dollasr. -w F eio gh r ted exa avm erap gle es., 56 percent of recently . 2004b. “A 30s ppe 40s ndix: Addit8.1% iona a l Figures 17.1% 2.4% for the EBRI3.4% /ICI Part 8.3% icipa 7.1% nt-Directed 17.7% Retir 74.6% ement P 61.4% lan Data Collection plan re Tc eo nur rdk e e(e yp ear ers s )include mutual fund companies, banks, insurance companies, and consulting firms. Although the the fund, which is usually included in the fund’s name. 48 GICs are guaranteed investment contracts. GICs are guaranteed investment contracts. 17.6 Inve and passes the target date of the fund, which is usually included in the fund’s name. stment Co all mresea pany rIn ch stfinding itute. 2s, 01publi 6. “Th cations, e U.S. Ran etid ren m ee ws nt M alert arks e. t,EBRI also exte Fourth Quarter nds 2015 its e ” (M dar uc ca ht)ion . Avand pu ailable bli at c service 201 b b b b 3 num b 50s 10 e Of r 0% h wahsic 70.9% b h:e te an rget re-dat v6.6% ise e d funds upwa 1100 13t 5.2% are rd)an . h S opt A4.3% m ion t.o N ng W p , S a 2.6% rui titc 0. eip 878, 7% ants W 1.7% in asthi he ngt ir a, 1.5% on, b20 D s, 13. C, m 20005 o 5% 0.7% re tha -4051, n 4 0.5% 0 (202) 659 percen 0.3% t 14. o -f0670; 1% thei fa r 5.7% 4x num 01(k) be asr,s ets Participan >$250, ts’ ac 000–$625, count bal 000 ances vary not 10, onl480 y with age an143, d te 180 nure, but also w $4, it422, h sal 335, ary 725 . Figure 16 report $30, s th 887 e account 7 M o Froep r a art 40 c1 io c(im k p)a pl n p et tla se t n at 60s ip m b a ye e rtar ser icip -e ies a nn d o t s201 f$34,673 he the p 4. ld A e er q s cuit ien gn ie tif as $49,775 ge ic aat o n y t f el esa ub irgi -e s be n le 4 td o $68,792 20 f0 1 t1 h (4 k a) tc pa o bm arla tp ic nc aipa $113,062 re e 22.2 d d n twi f s w und th it 9.7 h y c o e aa t ue rt $189,341 -g st eo a nrn d ydi 2 is n0 g 4 in 07 v0 ,e 1 a s( $274,043 t nd k e)d l m o in a an ny ts a a r g h ne a d l td - d ohig a at nehe a fm und r ous n.t s Relationship of Age a 50s50s 50s 7.0nd Tenure to 13.3% Account 37. Per 17.3% 3% 7.9% Balances centage of ............................................................................ par 8.6% ticipant 27. 7.9% s 2% , 18.4% 2014 26.0%74.9% 35.5% 25.9% .............. 15  Cope GICs are guaranteed investment contracts. GICs are guaranteed investment contracts. GICs are guaranteed investment contracts. GICs are guaranteed investment contracts. lan 60s 40s d, Crai32.3% 45.3% g. of 2 R 0 em 11ai . ni “T 16.9% ng 7.8% arg 401( etk -D ) Pa lan te F 5.9% 6.8% und Use in 13.8% 9.8% 401(k) 3.3% 7.3% Plans and 19.6% t 5.8% he Age G Pe roup rsisten7.1% 8.3% ce of Their 3.4% 2.9% Use, 200 2.6% 1.2% 7–2009.” 100% 100% EBRI Figure The E Sub B 40, 30 RI% Average Asset /30 ICsc % I 40ri -31 0( A kp ) t d t ari ga et o ta - All da ns ba te f s oe en ucation of 401(k) Plan nd tyv piicrao lln y r m eben alan t i cs c es iter s ptoif r Accou tifed olio t to b o b ec ne f ts om, by P u el lle ys c s fo oc artici m us p ed lia o pn n ant A t gr w ow itth hg an t e Among h de m I orS e f Oo-c2 u7 s401(k e0 d o 11.2 02 n i In n) c P ofm ole rma a a ns Partic it t a io pp nr S oac ipants eh ceu sri at ny d p Au With assd ei st t he target date of the fund, which is Figure c d fund o ant te c fund a D uins C se 14, : a U o u n 401(k) Plan Account Bala .S nl s de y . i D n a the v nd eest p i a anv m rctc m en e ose un t tnt m w te as o b nt fa rlL ia ev n anc b tis a o e ed rrs g , et do he E nces Less Th - m da ld w p n tlo in e f w ya e tu r he e n d ds B (4 se e 0 w ne an $10,000, by e F 1as (fk it i) gu re s p v S rla ie e ss n e c A u d s u r1 a it t t p y h w p A ra a o Partic d r rd u tm igh f cini ip ro A ipant Age and a s m 2 4 n tr)ta .s t0 ’ io 0 c7 u n f r( ro M erw n atra c e rd h) m Tenure ,. w p A lo hi v ya le eila r i .................................... snc .b le Re id e a tnc ir t eem oe f no nt s na –v ta ing rgs e t he dald 1 te 8 b 0–2 40s 89.2% 8.9% 71.6% 3.5% 4.5% 7.7% 8.7%3.0% 30.6% 43.8% 7.0% p an th ee d r c ce 1as nt 1 e po e ffo r c p r e a tnt h rte ic w ip 1e 9a r nt e y ein sa in rs the s th m ir a a t6 ll t 0h p se la ( F d ns ig at u ( ab 1 re 0 as 0 5 e ,p up a hratp s ic etip rr a a pc n a ktne e s do l) r 4 . 0 fT e 1 he we (k )m r )p e lwe an dia rn p ear a og t ff ie c ei rp o ean fd t he tcso,m p re p ala ratn tic iy vip esa ltyo nt c fe s k w in a spt art a he n ic i2 n i0 p v1 an e4 s ttd m sa m e ta nad b t a o esp e u t is is oen ,o f hir Note: "Funds" include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product 60 e d Components may not add to total because of rounding. P ro p a .j r e 2 t 50% c i0c t1 ip f4 o a .r n“Y tW se hy ar in - tE D he n od e ir s 2003. 2 Re 0st ir he ”e m ld In e v m n et o s trRe m e e taha n d 16.5 tine n Co 9 sm 0 s V p pan e ar rc y ye : In n Re t so s tifult t u th tse e f ir P r oe a m rs cc p E oe B ucRI n titv ’s b e al 2 10 an 01 , 4 cne o Re s. i2 tnir A e b( m al Au an ent gcu eS sd t) primarily invested in the security e c f.u uA n rv it da y si ,lP acr b o o lm e je p a ct t aio ren d with Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product GICs are guaranteed investment contracts. 60srole 72.4% to improving Ameri 60s 6.1% (202) 775 4.6% cans’ finan - 3.9% 6312 16.7%cial ; e-2.2% m kn aiowle l: subs dge 1.7% cript thro 7.5% ions ugh 1.4% @ebr its a i.org w 0.6% ard M 13.8 -e win mb 0.4% 75.8% ning ership I publi n 0.3% for primarily c m seat rvice ion 6.3% : cam Inquipaign ries E 29BRI/IC Equit I pyro , bond, ject h m as oney, or opponent of any position.” col land/ ecte or d balanc data fed rom funds 19,9 6 through 2014, the universe of data providers may vary from year to c c c c • >EBRI’s reliable health and retirem $625,000–$1, Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. 250, 3.8 000 10,924 ent surveys ar 9.1 242,777 e just a click away through the topic boxes at $9, 0959, –2 Year 130, s062 $41,022 werew iw nv w e.sic te i.d o 24% rig n/ inf ta us ro g ua /e r llt y e- itd nc _a l1 ud t5 e e_ dfq,, iund n t 4_ hed f sa und at ta ’ s.y na xls em ar e - . end 2014; amonpg participan, ts in tyhpeir 60s, aboutp 129% 6 p 12.7 eprcenty of their 401(k) Ac60s count 60s Balance 18.9% 33. 20s 10.4% 4% 30s13.0% 30. 40s 1%20.6% 50s 14.9% 60 36. s 5% 22.2% All a b co s al S nc a an o Column percentages may not add to 100 percent because of rounding. Column percentages may not add to 100 percent because of rounding. Column percentages may not add to 100 percent because of rounding. Column percentages may not add to 100 percent because of rounding. At per e cc in a e All 50s ty lc s S re en a o a e tAg io fr c t -a ur le n o ge en s in t 38.4% 40.6% d y g o in r e 2014, fe r t e-pq h tle a e uit nur c re ie em 35 s a e 14.4% s 9.8% .d a m pi O n e pv iuc rc a ne rg 4 e r t h hi ic a nll, tip 0 g o 1 a a he ( fnt t kt 6.1% 6.9% )h y rs fr e pl e P a a e a a ac trr n c - c tt e c he e ia o n o n cn o d u tag ir c n o 2014, c u t 12.5% 11.4% f p eu n of brtal r r ba e e A an rn e 9 c lta tc c ie n p r oun ee m c 4.3% 5.3% e sm e, rp o c t B e s lo e fnt nt ee a re yl e e anc H co ra e sfr o n ’ e I ni 4 l10.2% 12.4% 4 tden l0 ng n 0 y1 v 1h ( e s( k fo s iet k re ) t) ed p rd a p l ll l.a io p n a 2 n w E ar ns 0 er qui p t 1 .ia 7.9% 9.3% 3 c -Re ir ty i.n p t ic c F an to iip und rm e ta sm e nt sw w ese nt 3.9% 2.7% o re he r ks er ld a in v s. v ing no e Fs o ts e 2.3% 1.6% e r q he d ex uit ild n aie m ta s a pl t,rg e, p d 100% 100% e r o e ttw h -vd e n io at fus fir e ro st m - 7.9 18% 7.1 >2 $10, –5000 All2.4 87.1%® 67.6% 14.7% 7.7%6.3 8.2% 3.2% 77.0% 8.6% indicated. For revisions to these data for 2007–2013, see Figure A4 in the appendix. Relationship c Issue Two or B ®rief,Between Acco Fewer no. 361 Years of Tenure (Aug 11.3 us unt Bala t) b. A -33.8 vances a il.................................................................................................. able n ad Salary t www.e.............................................................................. bri.org/pdf/briefspdf/EBRI_IB_08-201 5.31_No361_TDFs............... 40 ............... 15 pdf   in stap nla d w a ns w rd. w a M .td p o or rl.e eo gvo io vv er us / 50s c e , E b es B m aR/p IP h lo Da y Fs e /2 ro s0 bt 0 oa 10.9% 8 r ip n ro e elns d a led io l np e oga vla elr o nb int 5.6% pi ulle n oi o ind tn in. tiv h pa id dtf t u a h 6.8% l e m retet ire hm odo ent lo 21.0% g ayc u co sunt ed m s e (Iet R 29.6% s A t sh ) e pr a 21% rei v no acty in st 26.0% 21% calud nda er dds o in tfhe th e Gramm- fund use and inve Note: At year-end 2014, the average account balance among all 24.9 million 401(k) particiants was $76,293; the median account stment was revised re do gardi wn nw g E ard. BRI Fo m r e ex mabe mrs plhi e, p a thne d/yor c earon -en tri d 2 but 30s 0io 1ns 3 t sh o E are o BRI f -tE aR rge F s t-houl date d be fun di ds w rectaes r d tev o E ise BRI d from w 46 this hile y b e ar o 5r1 s r o ,p w te h All ing rc e e s n a ptm r iv o 71.7% efile as pg ar eit n .i c A 2 ip t0 5.6% a y 1n e 3ta .s r B -i n e en cp au d 5.0% lan 2014, se s o wld i t25% e 20 h 3.9% r m p po art ere rc i c e tih nt p 2.5% an a n o tf5 s t ,ho t 0e0n s 0 1.8% d e p te ar olig thiib c av ile pe 1.6% an flo arg trs lo w ea r ens re ac 0.8% 20% c ha oo ffu d en r4 te 0 d b 0.6% 1 al c (o an k) m c p p e lan a sn ,0.4% y as lo ss a te o ntc ssk o i20% as n ut 6.1% t sh an te a nd daing tab ase 52 p security indicated. invested in the security indicated. Components may not add to total because of rounding. er cand e 20 nt % co om fC rpany h eoosetoSave censtt oc hir k,e and s in >GI 10–20 Years the and Csir and/ 4 the 0so , co rand mpanio 51 pen rcsite ent o ww 7.1 f re w.c cent hoo hir set es osav in the e.o ir 6 rg 0 s in 2014 (Figure 39). Concentrated w Mw od w >e $1, .l. ici250, .” oJ ro g/ 00 ur pdf 0–$2, na GICs a /l pe o500, fr re g 1 Re 0000 u-t a0 ir ra 2 e n_ m tee ae d i ppe nt nve 1 n stmen , din x 11, o. .t co pdf 453 4 n tra (A cts. pril 4.7 ): 95–411, 117. 858 $20,584,627,522 $49,980 year. In ad20 dit %ion, Z -4 e 0t ro he 19% plans with any given p89% ro19% vider ma 19% 78% y chang19% e f74% ro 2014 m y19% ear to 77% year, thus 87% changing80% the plans provided by 16 Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. All All,, -37.0 13.1% 3.9 36.7% 6.1% 7.1%p 22.0% 5.3 12.5%,yp 22.3% 41.2%p 38.9%py 60s the top of the page. Group 32.2%Zero 13.2% 1–118% 0% 11–20 6.2% 18% % 21–30% 15.2% 31–40% 5.6%41–5 5.0 0% 15.3% 51–60% 61–70 6.7% 5.5 % 71–80% 3.8 3.3% 81–90 2.2% % 91–100% 100% asset s we >5 re – 1in 0vested in target-date funds57 . 5.4 .6% 8.2% 5.7% 4.9 10.9% employer 22 s or am balance was $18,127. Account balances are participant account balances held in 401(k) plans at the participants’ current employ ounts r 82 ol.3 le% d over to IRAs are not included in the analysis. To> c 2–5 Years apture as long a saving ers s history as 1 yea 3 T p rh r fe e n und e rc pl e ua n s m c.tem b a er t en o ye ft a r pa ra d- te re ( tn icd im p 2 a ea 0 n0 t 1.7 ns7 i s,n c an h tedu hd e 2 4 led 6 0 1p S 4e o E rc cB ie a R n lI S t/ Iec h Cad Iu 4 r i0 m ty 1o f (re k ir)st da t- ((more)) ((more)) ((more)) ((more)) h yan tea aba r 8 ben se 0 p ief s e l rc io ts e w a n er t s a t oh f p a ter h ne i cn ien r ta h tc a ec g 201 o e o unf3 t a b da val er tan a ab gc a e i e se sn b fin la ec v te io asn ut- s eie n dd oiex n f th e ed c q euit aie reer s Figure 15, Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. 0% 401(k) Plan Account Bala 60s 15.5% nces 2.5 Greater 7.6%Th 3.4 an $100,000, by Par 3.514.0% 26% 26.0% ticipant Age a 15.5% nd Tenure 21.4% .............................. 18 50% Age Group 3.6 Preside 1.7nt>0–50 percen Harry Cona t way at the above >50–90 percen addretss, (202) 659-0670; >90 percen e-m tail: conaway@ebri.org Leach a -Bliley Act. At n Th oe a tin m ale h ysis ia ns a clude ny s t n heo 1n 3pu .0 m bl illiic o nper partso icipa na ntls i w nif th o n ro m eq at uiio tyn fu t nh dsa at t y is 3.9 ear per -ens d 20 on14 ally . identifiable, such as a Social Security an 140 5 per alys c i s. ot en her t ( Fse s utrt able e H heo r value lm den ore fet unds , a aclc . o 2u 0n 1t 4 )b t al oan 17 c per es a 2.5 cre en tn.e t of unp 1.ai 7% d loan balances. 15. Be9% cause of all these fa23. cto3% rs, it is not correct 49 Year-End security indicated. >$2, 2014 Snapshot o 500, 00 1–0–$6, 10% 250,000 f 401(k) Partic 12, ipants’ Asset Allocation 621 2% 6% 953, ((more)) ((more)) 000 ............................................................... 9% $50, 10% 158,573,133 6% 2.97% $52,632 .............. 19  inv are (Fig e ur m stA target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approac o m ere e 4nt 7 c)o .o n A p cs te io n in Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. n trSource: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. p at in re e2 v d 19.2 0 io am 1us 4. o y T ne hus g a rts h,, e tlo o oa la d n n ea a r c ly 4 tze iv 01 it (tyk he )v a pp raie ort tse ic nt w ipit ia an h 2.5 l te a fg gfro e e,c u tt p e os nur f. p Ala e t ,n y a escar ize co -e unt , n the d b 2014, a re la m na c ie 61 ning , ap nd e p hes and passes the rc a se ne an la tls ro y o f. f4 O F 0 fig 1t( ho ur k)e s p e 25 l ang as ros ue pt s t M aac rgD eto -n da ald te20s , fB und onnie and are net of plan loans. Retirement savings held in plans at previous employers or rolled over into IRAs are not included. Th us 68 -eJ .2% e ra ang nne ed ,1 a .1% fnd rom K e 5v 1 1in .p 2% e Dr.c e Mnt o1 o .7% o re f .r e 2c0e1n1 2t.0 . hir “ % Meosv ing in 2.4% t he Beir y o 2nd 0 2s.7 tho % held 17.7 L ing im 2 .7% itm atoio re ns tha 3o .4% fn T9 ra 0d p ite 4 io .0 rc n % e ean l tRe o1 fp 0.6% t la hc ee ir mac en cto unt All a>10–20 39.2% 16.1% 6.1%38.9% 11.8% 4.1% 20s 8.4% 9.6% 10.4%7.2% 3.5% 18 2.4% .9% 100% the T he pr o pv er idce en r. tT age hus o,f 4 ag 20s 0g 176 r(e k.6 g ) p a % ta er tfiig cipa ure ns ts in witthis h 4 0 r 10.4% e 1p (k o)r lto g ae nne s oru atlly st asnho din uld g a 7.5% no crots b s ea lus l pa ed rt itco ip e as nt tim s82.1% b ao tteh w tim ite h tarnd end w si.t ho Re ut co 4 r0 d1 s (w k)e re The analysis includes the 1.2 million participants with two or fewer years of tenure in 2014 and in plans offering company stoc 26% k as an investment option. 10% Note: “Funds” include mu atual funds, bank collective trusts, life insu 12.2 rance separate accounts, an12.1 d any pool 13.2 ed investment product primarily invested in the security indicated. The tenure Deloitte Cons 2014 ulting EBRI/ICI All a LLP, Internat10.2% iona 10.9 l Foundat 4.0% ion 10.8 of Emplo 5.9% yee Benefit 12.9% Plans, and the 23.6% Internation 43.4% al Society of Certified Figure ea p at reoc rs y la ns e i ib s n a sg rle if41, - s f ic e , n a o o Rec td r nly io r 2014, n et o lo e irfntly Hir a e ng a d w p e cp o rr o -m o tre xim k p e nur er a d 401(k rs a e 0.8 e tid n e d t l w yp h 2 ia e 1 t)h .r Part 2 t i m 44 9 cip 6illio 0a p icipa –n e 1969 n trs c ac e n an ts Te rtt e ib ve ia inc rt t p hnd to y c lud ar eo a tih re c-o id e Be p r n an tin [ dit Less Likely to n t 2007 his ac div c io a du n u (n a a Fi ts lly s g to a s uis r g i e .e n d H 31) Hold Com a 46 t o cti w .v eY eo v a o 55 eu c rn ,c o g p it in u e any 2 in rs ts 0 401( im Stock 1 . 5p]o )k dec r)t a p .................................... nt a rr ea ttio c se ip no d a an te t s i s t n h w c ae o tr m e the e m u te cnur h 40 e . 2012e 10% . P -5r 0ivate Pension Plan Bulletin, Abstract of 2010 Form 550 9.0 0 Annual Reports (Versio 8.7 n 1.0). Washington, Of w> h tenure variable is generally years working at current employer, and thus may overstate years of participation in the 401(k) pla 1 ic0% h: A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income t–20% arget-date 7.7funds are an opt 7.42% ion 4% 1. 7.91% 5% 9. 5% 7% 2% 4% 13. n. 8% >$6,250,00 Equities include equity funds, company stock, and the equity portion of balanced funds. “Funds” include mutual 0–$12, 30s500,000 6,40413.4% 1,049,977 8.7% $56,380,317,505 77.9% $53,697 t V n o u a m nD p re ber target date of the fund, which is usually included in the fund’s name. e s ru .,he b m b2004c i, een e30s Jta h c tat .rk a“ ,n t C a h sf o 55 nd en er .2% t c rrh C e ib an d t ru aig tg o io e o 2 C n .1% ir o n sh B p t ee h h a la e r a ed nd v av i2 o w . .e r 0 2 r % io ag t0 h f 0 E 401( e 8 B .o R 2 “r T .6% Ik m .he )e P dIla im an n p 2 P a .9 aa cc % trc to o icu fip n Pa tP 3 n b .5% Atal so a D n nur Re ce ing 4 tf.2 ir o e % r B m tull h ee nt a d nd 4 S at .3% a ab B ving eas are s M 5fas .0% o arr k a 4e0 w t1 sh .(” o k 5 l) .4 N e P % are a tio rftln ieca c 1 ip tl 2.8% sa T n tah tx s e. ” EBRI EBRI is sup Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. >20–30 ported by organizations from all industries and sectors that appreciate the value of 32.9% 8.5% 14.5% 14.5% p w pla a err ns te ic ip he by ald nt inv Row percentages may not add to 100 percent because of rounding. s b y e in sp tp m ala re tins n cip t o o afp n f70 te tio sr i.4 ns in ng % t a lo he nd air ns p 5,la 0 tn she o s ize rhig 6.0 he s, sw t hile perc 1e2n tpag 20s ere cs e nt of o pfart 40ic 1i(pkan ) p ts la w n ia th s so eu ts ts w tae nrd ei n he g ld lo an by b pal aran ticcip es a n w ts e re in am theo irn g balan • cesNeed a number? in target-vari daab te le f iu s gen nd Check out the s era to lly ye 42 ars worki perce ng at cu nt oEBR frre re nt emp ce I Databook on Employee Benefits. nt loly yer, a hir ne d th d up s ma arty o icip verstate yea ants in rs of pa their rti 6ci 0 pa s. ti oInn ina th d ed 40 it1(k) pl ion, an at . year-end 2014, 55 Asse Rt A atel sl.o ” c Sa oti cio etn y a of n A d 20 c I 07 tu nari ve es stm (S 20 e e 08 p n te t m Ob peti r20 )o . 09 n As v a ilable 20 a 10 t www.s20 oa. 11org/res20 ear 12ch/rese20 arc 13h-proje No ct v-s14 /pension/research- e plnc anr l yo pa tn ed a c bcees fo $0 s w re Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. a inc s si lus mio ila n r i in n ea the rl id er a y taebaa rs s.e Fto or ex con ac m epl al e, the fro id me 2 nt 0it 10 y tohfr o eu m gp hlo 2013, yers t ah nid s m em ea pslo uy re e w esa , sb 18 ut we perrcee n cto;d ie nd 2009 so t,h at • 37 Changes in Asset Allocation 4 E b di 0t1 or c(k ial) p Boar ar d: tic Har ip r40s y a C no ts naway ’ inv , p Between e us btm lisher en ; Step ts Year in hen c -End 2013 an 14.4% B o lak m ely pa , ed ny ito s r.to A d Year-End n cyk v c iews on ex 8.2% tin pr2014 u esed sed in a ........................................................... t h thisis pu to blicatio rically n 77.4% an lo d th w 11% os le e ov f th els e au . th Oo nly rs s h 7o u p ld e n rc oe t.. 19 nt   Figure 16, Medianas it approaches and passes the target date of the fund, which is usually included in the fund’s name. 401(k) Plan Account Balance Among Longer-Tenured Participants, by Age and Salary, 2014 .......... 20 a >20–30% 1% 3% 3% 3% 1% 3% <0.5% variaE bm GICs are guaranteed investment contracts. lep ind loyic ee a tB ee s ne the fit tS im pe ec tia hlis att ind s. 2iv 0id 15 u.a A lsnnu hav ae l 4 b0 e1 e(n k)w B ite h nc the hm ira cru king rrent S u erm ve pylo : y 2e0r1 s5 a E nd dit m ioa ny. no Netw re Yfo lerc kt: tD he el o le itng te th of m in c o Frro ea e DC r an se lik All :d. e > U an $12, ly T . S al t h.o e y 500, De m sho is funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested p t ea 00 ld a r ac n r 0–$25, e t r m q ke 2007 uit ie n pln ga ie t t 000, c s ar o em fa g 2014 000 L nd e en a t-b ta t r o o te r a , fund tho 2007 e f Em ld op r hig t 4, lu o h s 092 2014 ye e l h ea e o cn o w B d nc e et 2007 st n h ee l e nt fiifper tr et s a itS 1, m si io 2014 100% e 338, st e ns c h e u n r o in 232 ic u te o y 2007 seh e A qfd uit t om lh d ie ei in 2014 ea s ri u sa rtn tr se a iy n $72, t f e g i100% o 2007 ra s o n rm qu 019, - ( e 2 N n in o d 0 876, tv 2014 0 il2 e e 70 m w t 899 1 h b a 4 re s 8 o c r 2007 u ) ogh .6 m p A 2 p v er a a 0ric 2014 0 lea en 9 d b , 100% se tlwi e ; f a e C to $53, h tr t y oh e 817 pe m a el ra -e n idd n d 2 dl e2007. 0 11. Row percentages may not add to 100 percent because of rounding. Percentages are dollar-weighted averages. 0% 40s 48.1% 2.6% 2.4% 3.1% 3.5% 4.2% 5.2% 5.5% 6.2% 5.6% 13.6% 20 >30 a 64.5% 28.7% 7.9% 5% 17.4% 10.5% b 50s 14.7% 7.4% 77.8% expeunbiased, reliable information on emplo Is A rie sssu nc oec e ia B o ri tio fe n “ f,t y P no p ro ic .c a 3 el” 1 e 8 d 4 ing 0 (J 1une (sk,) N )p.in la A e n v ty a p-ila a Srixt b tic le h ip a A atnnu nt wsw .a w l .C eo br nf iy .e oee b rre g/ 7 nc pdf eenefits. o /br n T iea fs xa pdf Vis tio/n, eb it N riwww.e _i ov be_m 06 b-e b 200 rri.o 13 87 r– g1 ./about/join/ p 5, d f2003, Ch ifor more. cago: 44– 53. 17 be ascribed to Sources: Bloomberg, Barclay th Equities include equity funds, company stock, and the equity portion of balanced funds. “Funds” include mutual funds, bank e officer 1996 s, trustees1999 , sm Ge lobal Inv mbersestor , or2002 s, Frank R other sp ussell C onso2007 rs ompany of th, and Standard & Poor' e Emp 2008 loyee Benef s.it R 2010 esearch In2012 stitute, the EB 2013 RI Education 2014 and Research 20s part io crip 30 anst s( 0% Fi i0% ng tuhre ei The analysis includes the 2.8 million recently hired participants (those with two or fewer years of tenure) holding r 5, 3 0 lo sw , 4 e0 r sp,a o ne r 5 l)0 . sP a (F rtig icu ip re a nt 48 s )in . In 4 0ad 1(d ki)t i24% p ola n,ns p art rep icrie ps an ent ts a w iw th id fe iv rea ng or e fe o w f ejr ob y etars enur oe f teexp nuere rie o nc r e wsi.t h I n perce m b c notvi on f gt- he be a yo cc no d. un as t px ba lances of a,rce cent ly hired participants in their 20s were invested in balanced funds, the same as b Figure 19 8 o F tp h oe rc 4 rc o42, e 0 un 1 ld t( Ne ;k i b )n a e 2008, w 4 ss tra et >3 c 0 f 0–80% k 1i 16 e gu (k) Parti d r b es, py e r 20s s re ce ee I s cipants n etarc ;n in vh est 2007, ers Ten m en o30s v 16 dte C Not to Ho r o p m m e 4% u rp c lta e ip n nly te ; I a ld Hi y n 40s n e st d ai i 7% rs tgh Co u n.t 2006, e D 2at 0ncentrat 1a 6 15 .p 7% ro 50s pv er id io ce en ns in Com d tf.o r 5% eac 60s h p a pn ar y Stock ti2% cipan .................................... 41 tAll inclu 5% ded >30 date of birth, ofRow percentages may not add up to 100 percent because of rounding. Percentages are dollar-weighted averages. 401(k) assets 0–2 we 60s re invested >2–5 in compan 13.9% y stoc>5–10 k at year-end 2014, 6.7% >10–20 the same sh >20–30 are 79.4% as in 2012 and 2013. This Asset Allocatio A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approac >$25, 50s Of 000, a win the security indicated. h00 n ic46 and Participant Age h: 0–$62, .1% target 500, -dat 3.2% 000 e funds 2.are 8.......................................................................................... %3, an 254 opt 3ion .6% 4.1 2, % 305,842 5.0% 6.2% $126,389, 6.1% 408,870 5.6% hes and passes the 4.2%........................ 19 $54, 13.0% 813   T he Acc C inv oo unt ns es b ul tm a ting le an nc tL e o L sp P a t.io rA ens ne va il ttha a o bf u tle a np a p t la aw in dw lo w ofa f2e n .r db se alo cla ait nc n tes e.ig s c.o nif T m hus i/ccaon ,nt un 71. tly e5% p nt aaf/ ifd d e l a co t m ah / n o Db w ealo lp ait a nc trt ee i/c s us 73. i a p/ an r0% D e no o tsc um a t i llnc oecnt lat ud se/ e hum d th ie n a ir an n 4- y 0c o 71. 1ap (f t k 1% i)the al as e /u sie s g- tht s hc . a - Fan sig se u ntru eal 22 - F t F qu im o or ir n an ee t itx le, he an am ty A h al p lh e m llys e a,v i sab e ea o Tp he S&P 500 is an index f n o t a S ur ar t toic g th ce ip iar tle - a 8 S d e t 3. e a ec -3% td qeu ua f irn und itr of 500 stocks chosen for market y a te r 4 r us epl s 0 1 o e a (f a c k 4 em )m 0p1 o en 58 la ( ng k n. .7 t) r d % p O aelta ne fa en w ul siz p rta e e a s e, liquidity a d r 5 t s ic a o 5nd n ip pa t er , and industry 7 ha no nt .9 cen s n t% -jin def to;b a t he a group representation. t ne u dnur lir f te o 2 d 4 r0 e t sh m 0 ha e h 1 6 a(.y k 1 di ) % gh no m ple o tast r n re e pa qu ftle hr ia c n titn tc ille ie, pa 8ng 0 in tp t w ts, h er ao se c s 3 e f1 e M nt p 03.a p 6% o rittf er ic ch tc ip he el en alir a ttio . n S an d cec U in e “ otu k tA nt he uls t . Fu ww ndw , .d or ol th.g eirov sta /fefsb. sNo a0–2 /th PD inF g /h2er 0ein 10 p ise to ns >2–5 bio e np con la str nb ueulle d ast in. an>5–10 p atte dfm pt to aid or h >10–20 inder the adoption >20–30 of any pending legislatio >30 n, regulation, or balanced funds in 2014, the 2.4 million recently hired participants holding target-date funds in 2014; and the 0.5 million Distribution of collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security Equity Fund Allocations and Participant Exposure to Equities W • ash Instantly get e-m ington, b DC: AllNationa ail noti l Tax A? ss cations of the latest EB ociation. 12.9% Age GroupRI data, 7.9% surveys, publications, and m 79.2% eetings Less Than $10,000 More Than $100,000 2014, more t36 han p e 3rc 0 e yn e >ta 8 r o 0% sf o th f et ep nu arrte ic iw pan ere ts le in s st h lik e ed ly 2% at tab o us ase e t hhe ad 2% > lo f $40,000–$50,000 ia ve n o pr rofv e1% iw sio er n yte hars an o 1% otfhe tern p ua re rt an ic 1% ip da 5 n tp s.e rc Thi e1% n rtte h ead n p m erc ore en tt hoafn in 2013, compa b red with 54 percent in 2012, 42 percent in 2009, 24 percent in 2006, and about 7 percent among that Figure Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product 17, Ratio of Participants include the 20.7 million 401(k) plan participants in the year-end 2009 EBRI/ICI 401(k) database. 401(k) Plan Account Balance to Salary, by Participant Age and Tenure ...................................... primarily invested in .. 20 from target date of the fund, which is usually included in the fund’s name. whic >$62, h 60s a500, n ag 00 e49 0–$125, g.8% roup 000, is3 a .7% s 000 signed 3;.2 d % a 1, te 445 o4 f .0% hire, fro 4m .6 2, % 151, whic 643 h 5.2% a tenure 5 .9 ra % $127, nge 522, is 5 .0% as 262, sig571 ne 4d .1% ; outsta 3nd .0% ing $59, lo 1a 1.5% 267 n balance; sha Sou rrce: Tabu e has flTa ati he R lle ons from EBRI/ICI Parti ussell 2000 Index n by 63 pe measures the performance of the 2,000 smallest rcent cipan sinc t-Die rected Reti 1999 w remen hen t Pl c an o Data Col mpan U.y S. companies (based on total market capitaliz l ecti sto onc Proj k ac ect. counted for 19 peation) inc rcent luded in the R of assets ussell . Recently hired inter So pu retativ rce: Te r abulat ulerecently hired participants holding non-target-date balanced funds in 2014. , io or ns as f leg romal, E acco B RI/Iu Cn I tin P ag rt, actu icipan ar t- ial, Direc or o ted thR ere s tu irch em p er n o tf P es lan sioD nal ad ata C v o ice. llec ww tio nw P.re obri jec.torg . presents the distribut Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. ion of plans, participants, and assets by four combinations of investment offerings. The first 4 ca 0t0 1 ego (d ke )r fip ine ela s n, de d- b sc pe a 19 rn r ibe 96 tcih cd. ula m ark rl 20 yi 00 n ag m -s ou ng r20 ve 02 oyld -2015. er p 20a 05 r ptd icfip a20 nt 07 s, is th 20a 08 t the p 20 r09 oposed 20 10 regulat 20 io 11 ns for20 4 12 01(k) 20 pla 13ns w20 er14 e not introduced b 2012. 18 50 V Ra an epl la Asset Allocatio D n ac e cem e rh se en inv i, tJ R e asc a tk e tindicated. ,e d n B an and Inv in ”d ie nL q C o uit ri on ie L e gr u s stment O c ess a as t i.y o e 2 na 0 arl1 B -0 p eu .tions nd dge “T 2 h0 t e ....................................................................................... O 1 Im 4 ff,i c p ce o ac 2 m t0 po 1a5 fr b. e Ad u F tw o or-it a Eh nr dle di os tllm iso n te ha ant l n di asc h nd a ulf ssi A aut o t n o y,e m saee a rt -ie c B n rC d ao dy 2007. nt a rib nd B ut O io o ld n ge da E r s401( n c.................... 19 2 al0 a1 tkio 4 ) a n nodn Brady,   c Source: Tabulations from EBRI/ICI Participant-Directed ReY tirears of ement P Tenure lan Data Collection Project. a 44 3000 Index Sourc a (w ehich tracks the 3,000 largest U : Tabulations from EBRI/ICI Partic .S. companies). ipant-Directed Retirem Sala ent Plan Data Colle Y ry ear Ra s of ng e Tenur cte ion Project M it E Ic n st he p the security indicated. im Not all participants are offered this investment option. See Figure 22. lll, aa n tand sem y O es o liv eaia rf 2013 t S h.e n , cia nars by clicking on the “Notify Me” or u nd (lm at b est Ser te o da ph f 4 e tan 0 a 1U ( vk t ak )i pl lus abl a . e) n 2s0 , a o 1n 2 nd .ly a “ 1 T c.a t5 ir v g p e e er pa t-cd en ra tit c te i o p fa fund t nh ts e $ s a“RSS” buttons at the t rin 4 e. ba 2 4 t 0se r1 il(ld o ik o)n n i Re na 4 t c ir0 o e1 m m (k bi e)nt n pl a ta P in o la n a ns op of our hom o sset f. da ” N s w tB aE f er R ro e W m pa U orrtk .iS c ing e .i D pa page. ep P nta l a po re ta m rn , en s. no t . All Note: Row percentages may not add to 100 percent because of rounding. 52. The analysis includes the 0.4 million recently hired participants (those with two or fewer years of tenure) holding balanced f 2% 2.6% 2.4% 3.0% 3.4% 4.1% 5.0% 4.9% unds in 1998; the 1.4 million 5.1% 4.6% 12.6% 30 Figure P pa ar ry t tiie c ca ip ip A target-date fu r43, a a s> Sour n nt $125, ot Asset Allocatio f s s c etin w : T en it 000, abul 4 u h b 0 r ati e n a 1 000–$250, ons d typi c ((k cFi f) o rom g un cal pu la EBR ly rebal r te ns n b I D /000, I6) a C m Il a i an Par .stribution nc aTh ces i 000 ty ice ipant- ho e s ts portfol m o ld Df ie r ec le e d of ted q is ia o to become l uit s R 953 n eRecently t tiie tha ree m s nur ent Pl n thr $e 1 an o ess focu 0 a ug Hire D,t a0 ta C th 0 he 0 oa 2, sed on d 40 l le h 540, cc v ta iur a on Pr d r growth 1(k r ie 351 e lo ojtn ec a y) t ns t. o Partici e an fm o d more focu op u plo ttsio p y ta e n ant Acco nd rs $167, w inc sed on ing as lud . 894, e iig n unt ing come as i ht 805, e Balance yq 975 euit a t approac rsy in fund to Co 2h0 es an 1 s,4 c mpany Stock ,d passes th o the m$66, p s an am 091 y e target e s ta os c i k n in , and age gr*o Au tp arget in -dat 1998 e fund Row percentages may not add to 100 percent because of rounding. (Fi tg ypic urally e 40 rebalan ). cAt es y its e po ar- rte fond lio t2 o0 bec 14 o, m ae m leo ss ng fo crus ec ed ent on ly gro hir wte h d and pm ar otre icip fo c aus nt ed s o in n inc the oir m e2 a0 ss it, appro targetac -dhe at se and funds 28 funds in the pa c rtParticipants include the 24.0 million 401(k) plan participants in the year-end 2012 EBRI/ICI 401(k) database. icipant’s investment portfolios; and asset values attributed to those funds. An account balance for each 4 0 1 . (2014. k) par t Pic C riv om ipa 1 a pt onents nt e s P e c m ns on ay io tr not a n ibu Ptla dd to en d B t 100 o ulle tper his tin, c etnt r e A bec nd bsaus t :r t ahe e of ct y r o oundi ft e Siz 2nd 0 e of ng. 1e1d Ac Ft co o ount r m be Balanc 5le 5s 0s0 e lik Annu ely t ao l Re hop ldo rcto sm (V pe ar ny sio sn to1c.k 1.) .A W t yaesa hing r-end to n, d a 100 or fewer 101 to 500 501 to 1,000 1,001 to 5,000 >5,000 category is the Formerly base Partic recently hired participants holding balanced funds in 2006; the 2.0 million recently hired participants holding balanced funds the Lehman Brothers U gro ipants up inc , w lude the 24.9 m hich c .S. Aggregate B ons illion ist 401(k s o )f plan partic ond Index plans , the Barclay i pants tha in the y t of sf C ear-end 2014 EBRI/ICI 401(k eapital U r neit .S. Aggregate Bond Index her compa)n databas y s is composed of securitie to e and the 21.8 m ckin 2007; the 2.4 million nor GIC illion 401( s o s cov r k) o etrh ing er stable-value p unt Ba ur rt h il ia c1ip m 9a ,8 a nt 1. Ac ns cd ount Sour H w e bal o crl e: e d anc T ea abulations es n 2012. ar lit e tpar le ticle f i pant ac rom ss the lik count EBRI/ICI 401( ely bal t anc o es ha hel v k d e ) iPar n s 401( uc tick ipant- h ) plhig ans D at irh ec the par ted conc Retir ticie pants em ntent r ' ca ut rPlan Data rio ent ns em plin oyCollec ere sq and ar uit tion ie e net Pr s oja of ec t pl t.y an l eoans ar-. eRn ed tire 2014 ment savings co hel mp d ia n r ple ans d at with year- S i z e R e date of th of t.i r2 e 401( 0 m 0e e fu 5n . t n“ d, wh T In he k c) o i ch Im P nf is u ela lue su An d al nc le y i q A e nu clccou o a uf ded i c y A.ut ” n th E on e fu B mt R a B nI t d'iIs c s n a s E ame. lu nr a en o B llm ce rieefs nt , n , o. Ca3t4 ch 9- ( U N pov , a end mb Ie RA r). C Ao vnt ailra ib but leio ans t on 401(k) Accumulations at Asset Allocatio GICs are guaranteed investment contracts. Source: Tabul n by atio Investment Optio ns from EBRI/ICI Particin pan s and Age, Sa t-Directed Retirem lary, ent ((more)) P and Pla lan Data Cn o S llec ize tio......................................................... n Pro ject. ....... 22  passes the target date of the fund, which is usually included in the >5–10 Years fund’ ((more)) s name. Figure 179 18, 1 >$250, 1 Rat (MEBR ar 000, io of ch I Is 000 Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled ).401(k s u C ea Br mib e )f ri Plan Account isd rg eg eis , ter MA ed: in N th at Ba e 1, i U o 114 n lance to .S. al Pa Bten ure t an Salar au d T o 13, rfad y E 647, e for c m oar n034 k o Participa m Ofifc ice. R I eSS sn eN: 0 ts in arc $1, 8 h8 262, .Their 7 A -13 v867, ai 7X lab 20s, by Tenur /710, 90 le 0887 15 at 0www. -137Xn /e 90 $ . be ............................ r.o50+ r$92, g/.p 50 a 538 pers/w179 21 11 38 9 o Sfee T La bo abl r,e B D u7 rea inu U o.fS .L D recently hired participants holding balanced funds in 2008; the 1.9 million recently hired participants holding balanced funds abo epra S rttm aten isttic o s, f L aa nbo d U r,. E S.m Dpelo pa ye rte B men en t o eff it s S Labo 8ecru , E ritm y A pldm oye in e B isten ratef ioin ts S 20ec 1 in 2009; the 2.0 million 5ucr.i ty Administration reports. See 2013. pr 401(k) Pla Source: T evious em gov abulations from plernment and corporate bonds, mortgage-backed securities, and asse oyerplan partici n s s or rWith Compa olled EBR ov pants in the y erI/IC into I I Participant-D RAs ear-end 2007 EBRI/ICI dat ar ne not i y Stock, by ir nc ect luded. ed Retirement Plan Part abase. icipant Data Collection Age t-backed securities (rebalanced Project. ........................................................................... monthly by market capitalization). The index's .... 41 ac bac la on ucnetd e df und for s 8.5 T p his er cse en ctt io ofn tfhoecius r beal s an firc se t d o n futn he d as inv se etss t,ing or p 4a 7t tp ee rn rce on f t4 o 0f1 ( tk h) e ip r la ac n cp oa urnttic b ipal aan nts c e w sit o h ve re ral spl.e c Tth teo peat quit tern y of The c b ross Source: T -sectabulations from io Note: Row percentages may not add to 100 percent because of rounding. nal analy EBR sisI/IC fo I r Participant-D this pub irect lic ed R atio etirement Plan n found t Dha ata t C c ollection onso Project. lidating the multiple accounts across a majority of the p Em a T rp tailc ro g ip y et e a- ae nt d a B is Source: T te e n fund te he fit abulations from sR s um e osf e to en afr a c the hr EBR e u I n p I/IC s a sed tr I itt Participant-D iu c a tip e s t a . nt 2005. he d ’s ir ect a ef ed R s a s “e u H etirement Plan t lits s i tn in ov re y ast ll om f fun D40 en ata d t1( C i s ollection .n k a ) P P ulan tlProject. a on m b sa :al t iA an cn en cU erp s o d la la m re ten e .c”to F pl na sac tn rtu s s ca ftro n ed i d m as n E pl BtR h an e I s’ (sF i ue n m b vest ru ofar m al y en l) .p ta lirn tic eu ip ps ant 2014, less than 30 percent of recently hired 401(k) plan participants in plans offering company stock held company DC: bU T. he S. a nal De yp sia s irnc tm lud ees nt t he of 2L 4.a 9 m bo illr io , n pa Em rp ticlo ipy ant ee s in t Be he y ne efar it-s end Se 2c 01 u 4r iE ty B RA I/d ICm I da in ti aba str sa et 4io 01 n (k )( dat Seap bas tem e. ber). Available at funds Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product . N GICs are gu A ob tT eo he s : ut Co a m m 4 p0 p aran leo of p nent par e teed i 2 rtic recently hired participants holding balanced funds in 2010; the 2.3 million recently hired participants holding balanced funds s ce i pants m nnt vestmen ay o no changes f tp add t con ar ov t to ic tracts. er tip ti he ma et .nt ota sl in in the the firs 2 t c0 o1 lum 4 E n B beR cI aus /IC e I o f4 ro 0unding. 1(k) d "F at unds aba ”s inc e w lude erm e uin in 2011; the 2.5 million tual the funds s primarily invested in e, ban plakns co, llec whic tiv h e g tre us ne tsr , a liflly e offer Note: Account total return consists of price apprec investment product primarily invested in the security indicated. balances are participant account iation/depreciation plus income as a percentage of the original inv balances held in Num 401(k) plans ber of at the participants’ Plan Par current employ ticipants estment. ers and are net of plan loans. Retirement savings held end R w 20 e w 0 tiw 7 re : .e m 2 br e 2n i .p t o.e r”r g/ c Ie nv pdf nt Com e / s o ponent br tfm i4 e e 0 s m fnt s 1pdf ay ( k C not )o / add t p m Ela B pR n o 100 per aIny p _a I B rItns _ cent ic 0ip t1 because of r it1 a u-nt t201 es Pin e 0_N Num oundi rtshe p ber o e ng. ir 349 c of t6 iv 0 Par e _E s 1 tha icipant B 1R , d In _D m o. s in o C2 rI Plan e , I A a t.ha npddn fE 8 B 0 R I pIs ers cu ee nt B o rife tfhe , no ir .a 2 c8 co 3unt (July ba ).la A nv ca eil sa ble at Al Nlote: Account balances are participant account balances held 81,139 in 401(k) plans 24, at the participants’ 900,605 current employ 1,899, ers and are net 733,325, of 039 plan loans. Retirement sav $76, ings held 293in c Note: Account balances are participant account balances held in 401(k) plans at the participants’ current employers and are net of plan loans. Retirement At year-en Source: d 20T1 abulations 4, the from EBR averaI/IC ge I Participant-D account ir ect bal ed an Retirement ce was Plan D $7 ata C 6,2 ollection 93 an Project. d the median account balance was $18 ,127 (Figure 9), disc Distributio ussion in en n of Equity dnote 2 recently hired participants holding balanced funds in 2012; the 2.9 million recently hired participants holding balanced funds . Fund Allocations and Participant Exposure to Equities .................................................. in 2013, and the 2.8 million ....... 22  30 Compon b in plans ents may n at previous ot a employ dd to tota ers or rolled ov l because o er into IR f rounAs are ding. not included. There’s lo The tenure ((more)) variable is generally ts more! years working at current employer, and thus may overstate funds. The asset allo 3 cation of participants without equity thfunds is explored next, because 401(k) participants holding no target- ins dat u R ranc e o w an pe e sd re c parat n eno tag ne – es ac ta m crg o ay unt e nto- s td , ad and at d t e a ob ny 1al 00 pe po an olc e rce d ed int n v f b es u ec n tm aus dent u e o s pr e f r o v o du ar und ctie in prim d g. w arily ith inv part estied cip in an the t sag ecu erit . y indicated. The tenure variabl e is generally providers t plans osav th at prev ings e si held in plans ious employ ngle indi ers at prev vior rolled du ious employ al o ovw er n into IR iers ng t or rolled As are not hem ov r er included. ein su to IR lte As are not included. d i The n tenure an vo ariable v era Tis generally he ll i tenure ncrea v y ariable se ears w ois generally f orking at curren 4.5 per years w cen t employ t orking at current employ in t er, and he a thus may verage ov er, 4 erstate y and 01(k ears ) plan O 51 ( bsee a ld T la e h P n W r e the security indicated. ,c r l a a e lo a n s sth ng S iin o of ing po etrhe t n - 4 o tso e n, 0p nur r 1 C la (k Dn. o C e ) Equi u d : pl n P ,E t a c ila es i a m in lnd n o np a cllo s fc ude equi A iz hig cyo e m eu e he is er n tytB funds, i ba r e ce -a sine n t 2 lim c a com 0 fo nit 1 a m c 5 pany te ( Re e e ).d A a st p s ta e ar ock, t s a tye h t r and t t ie c c c he ar h iphe equi u -an Is e ns ru n rt en m d t sit t 201 y tt por u o em etfn e t ion of bal a d 4, . pl c A t 68 to o iv vy a e h er anced funds. il per av a p )b t ae c le r o t en l sa ic arg aip tt Funds i o l a a er fn r t yt a ac a s nr cl lget o in c ude m n oe u t-he i n da utst ual tno b p e m funds, al la t a a n u n bank col n i a tcu nd ea nd sl, f , ile c u w a ca n s tiv h t d a eo s i tru cr uh o c sss tsh, a f , et re p d r s e w o im p ea er s p r e o e h no d rtne tan el s d i ts fo fn o r D r C s wtw ocw k., Nd ote: cool.m Account gp ov are /e balances are b d recently hired participants holding balanced funds in 2014. s w a/itPhD ab F participant account /2 o0 u1 t 14p 4e p ns eio balances held rcnp enla t o nb f ulle al in 401(k) l 4 1100 13 tin. 01 plans p (k d)f at p St the arparticipants’ reet ticipNW · Suite 878 ants current . employers and are net of plan loans. Retirement savings held in Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. equity fund years of s, bparticipatio ond fund n in the 401(k) s, mone plan. y funds, and balanced funds as investment options. Another 27 percent of participants inv Tehsit s epa d in tter en q i uit s dr ies iv a en t i yn e a pa r-retn by d r 2014, estric c tio om nsp pl araecd ed w o itn l h 30 oan pa em rco eunt nt s o.f 401(k) plan participants in their 60s at year-end Figure Morn w in Note: “Fu w g 19, w st of participation .a i Rat cr. S i. n ource: o ds” i 2ri0 o of g/ 1 ncl 5 pdf Tabul ua. in the 401(k) de mu 401(k /Ipe ati bb tu orn o al 1 s)t fu 1 f s plan. rPlan Account - om o n02. ds, ban n ES B pB R dI/IC B k col f Ian I P 2 lecti 0 d arti 1 ve tru w Ba c 5 ipant-D w Cw lance to la sts, l .se is rbr ie fe i ic cted in .Y o su e R Salar rran a g/ er tice separate accou b rem pdf oo ent y/k for br :P iM lan efa Participa s D rpdf a kta et n C / ts, an e o Re lbr lecti s n d an iult _ o ts in n ib_ y pool s P roj f0o ect. Their 7red i - 20 St no vestmen 054. c60s, by Tenur ks,p B d t produ o f nd ct s, pri Bm ills e ari............................ , ly i a nnd vested i Infnla thte ion; 192 21 6– Sources: Tabulations years w thus may orking fr ov atom erstate curre b EBR nt years em I/IC of plo participation I Par yer, and ticipant- t in the 401(k) plan. hus m Dir ay ec oted R verstat ee tir ye ears ment Plan D of participat ata C ion in ollec the 401 tion Pr (k ) plan ojec . t and U.S. Department of Labor. b Figure ut balan 44, Nc plans o Per e te s: " at prev v E centage of 401(k ari quite ious employ yd fliund f e i w nsur i sd ”e ance separ inc ers lyl. u or rolled de m For at) Pl u e account e t ov ual x er am ans Offering Loans, f into IR und s, p and any s le As are not included. , b, ank ab pool c o ou led i lt ec t nvest th ivre e Percentages m te rent us -q pr tby Plan su ,oduct la ifrt e i pr e may nsr im ur s Size, ar not add to 100 percent an o ilyf i c nvest e s thee 2014 ed i pa p r n t at ar he secur e ac t................................................................ 42 ici cp o because ian tun y indi tt ss ,cat an of roundi ied. n d an th ye ng. p o2 o0 led i 14nv E eB sR tmI/ ent IC pr I o4 duc 01 t (k) database Row percentages may not add to 100 percent because of rounding. 29 Asset Allocation to E © 201 q6uity , EmFunds ployee B .............................................................................................. enefit Research Instit Washington, DC ute -Education a 20005 nd Research Fund. All rights re ............................. 26 served.   Note: The median account balance at year-end 2014 was $18,127. ((more)) account balance. This statistic should be interpreted with caution, as it may not represent the total 401(k) assets owned by ne r pl et ac in re em swww. s ( s secu se a Sour en re I ily ri tce: T , ty i e n n b r nv o e r di abul iest rp . cated. For revi i o rs e ati rm i g/ s ons te en t pdf nt h frtom EBR e o C t/he pu on si m on lbl y tpa I/IC o m s to th ic tn I Par a a ea y l ti I ese data for 2007–2013, see Fi num o tsu in cn ipst r s ant- e t /ib tfu a D e h tc irra e 2 ected R t ts o c /f0 0 ae 1 2 n e m 5 0 ti) be r5 p e.ment Pl f P lo a u lc y a se te n .e a S an d t .spdf gu po Da o a re A2 i t ta C n j u tshe d o olge r r C ln e th cti son p o e appen et u o Pr n ns ioj rcem ect. io l o di ring xen f . Ame t r fir ea m ridi c . a n W 2 ess it 0hin 1 o 65 r s r te h apo e v in y rgs teed ara a -d en equ n idn c 2014 arceya ( sse e i Ee B B nR tI h r/a e Id C iy n I, c idence meeting their income-replacement needs in retirement. For longer-tenured participants in their 20s with salaries igure 30 fo r were in p prla im ns ari ly t iha nvt e so tef Note: “Balanced funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investmen d fe inr e G qui IC ties s . I a n nd ad dio tit ohe n,Visit EBRI online today: 4r01 s (tka ) b pa le rt- icv ipa alue nts m fund ay hos ld a eq sui a tin es t in hrvwww.ebri.org oe us gh tm bala ent nc ed op fun tio ds n, o rin co t product primarily a md pa d ny it io stn o ct ko ? s the ee F base options. 2 0072014 , altho . Ch ugic h ag a o lo : w Meorr n sh in ag rs et a he r ld In c no . equities. * Assets do not add to the total because of rounding. (202) 659-0670 Note: The tenure variable is generally years working at current employer, and thus may overstate years of participation in the 401(k) plan. invested in a mix of equities and fixed-income securities. the distributio n of 401 (k) plan acco unt balances to equities. www.ebri.org www.choosetosave.org ebr ebr ebr ebr ebr ebr ebr ebri.org ebr ebri.org ebri.org ebr ebr A ebr ebri.org ebr ebr ebr ebr ebr ebr ebr ebr ebr ebr m iiiiiiiiiiiiiiiiiiiii.....................on or or or or or or or or or or or or or or or or or or or or or 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 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 g g g g g g g g g g g g g g g g g g g g g thl Issue Bri Issue Bri Issue Bri Issue Bri IIIIIIIIIIIIIIIIIIIIIs s s s s s s s s s s s s s s s s s s s s ys s s s s s s s s s s s s s s s s s s s s rue ue ue ue ue ue ue ue ue ue ue ue ue ue ue ue ue ue ue ue ue esIssue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue Issue B B B B B B B B B B B B B B B B B B B B B ear r r r r r r r r r r r r r r r r r r r r riiiiiiiiiiiiiiiiiiiiic e e e e ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef ef h ffff • April 2016 • No. 423 • April 2016 • No. 423 • April 2016 • No. 423 • April 2016 • No. 423 Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief Brief r• • • • • • • • • • • • • • • • • • • • • epor A A A A A A A A A A A A A A A A A A A A Ap p p p p p p p p p p p p p p p p p p p pr r r r r r r r r r r r r r r r r r r r r• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • til il il il il il il il il il il il il il il il il il il il il fr April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April April 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 om t 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 h 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 • • • • • • • • • • • • • • • • • • • • • e E N N N N N N N N N N N N N N N N N N N N NB o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. o. R • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 INo. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. Educ 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 423 ation and Research Fund © 2016 Em ployee Benefit Research Institute 58 35 75 74 68 62 59 42 32 34 66 41 67 40 21 61 57 71 10 11 43 30 39 16 23 73 65 33 76 17 27 63 13 18 69 28 70 20 45 64 46 24 25 44 60 37 72 14 26 22 50 12 38 49 48 36 53 19 54 52 47 15 31 56 51 55 3 4 5 6 7 8 2 9 Appendix Appendix Appendix Appendix Appendix Appendix Appendix: : : : : : : EBRI Is EBRI Is EBRI Is EBRI Is EBRI Is EBRI Is EBRI Iss s s s s s sue Br ue Br ue Br ue Br ue Br ue Br ue Brief, no. 423, Apr ief, no. 423, Apr ief, no. 423, Apr ief, no. 423, Apr ief, no. 423, Apr ief, no. 423, Apr ief, no. 423, April 2016 il 2016 il 2016 il 2016 il 2016 il 2016 il 2016 Figure 23 Figure 24 Figure 40 Figure 36 37% Appendix Figure A4 Average Asset Allocation of 401(k) Plan Accounts, by Participant Age and Investment Options Appendix Figure A4 Average Asset Allocation of 401(k) Plan Accounts, by Participant Salary and Investment Options 41% Average Asset Allocation of 401(k) Plan Accounts, by Participant A a ge Among Appendix Appendix Figure 33 Figure 48 F Fiigur gure A4 e A4 Appendix Figure A4 a Many Recently Hired 401(k) Plan Appendix Part Figure 39 icip F an igur ts Ho e A4 ld Target-Date Balanced Funds Asset Allocation Distribution of 401(k) Participant Account Balance to Balanced Funds, by Age a Asset Allocation Distribution of Percentage of account balances, 401(k) Participant Account Balance to Balanced Funds, by 2014 Age 42% Appendix Figure A4 Percentage of account balances, 2014 A Asset A sset Allocation Distribution of llocation Distribution of 401(k) Loan Activity Varied Across 401(k) Plan Participants 401(k) P 401(k) Pa articipant A rticipant Account Balance to Balanced Funds, by ccount Balance to Balanced Funds, by A Ag ge e Asset Allocation Distribution of 401(k) Participant Account Balance to Balanced Funds, by Tenure Asset A Recen llocation Distribution of tly Hired 401(k) Plan 401(k) P Partic ai rticipant A pants Wiccount Balance to Balanced Funds, by th Two or Fewer Years of Tenure Age a,b Asset Allocation Distribution of 401(k) Participant Account Balance to Balanced Funds, by Age a,b Asset Allocation Distribution of 401(k) Plan Account Balance to Percentage of recently hired participants, 2006, c Percentage of 401(k) Participants, 2009 $3,902 Percentage of Participants, 2010 GICs /Stable- 39% Asset Allocation Distribution of Equity 401(k) P Target-Date articipant A Non-Target-Date ccount Balance to Balanced Funds, by a, a,b b Bond Money A Company ge a, b b a,b Percentage of Eligible 401(k) Participants With 401(k) Loans, a,b Percentage of Figure 34 Participants, Percentage of Participants, 2012 2011 Percentage of Per Percentage of Participants, centage of account bal partic anc ipants es, 1998 and 2014 , 2014 2013 d 39% b Percentage of Participants, 2007 2007, 2008, 2009, 2010, 2011, 2012, 2013, and 2014 a,b 12.4% 8.9% Age Percentage of Account Balance Invested in Balanced Funds GICs /Stable- Balanced Funds Among Recently Hired Participants, by Participant Age Equity Funds Target-date FundsNon-Target-date Balanced Funds Bond Funds Funds Money Value Funds Stock Company Age Percentage of Account Balance Invested in Balanc Dec ed Funds -02 by Participant Age, Tenure, Account Size, or Salary, Selected Years Percentage of Participants, 2008 44% Ag Age e Asset Allocation P Perc ercent ent Diage of age of stribution A Ac cc count ountof 401(k) P B Bal alanc ance I e Inves nvesa tted i ed i rticipant n B n Bal alanc anced Funds ed Funds Account Balance to Percentage of Account Balance Invested in Balanced Funds b c Age Percentage of Account Balance Invested in Balanced Funds $4,400 Investment Options, All Ages a,b GroupSalaryZero 1–10% 11–20% Funds 21–30% Funds Percentage of Account Balance Invested in Balanced Funds 31–40% Balanced Funds 41–50% 51–60% Funds 61–70% Funds 71–80% Value Funds81–90%Stock91–100% Group Zero 1–10% 11–20% 21–30% 31–40% Holding Bala 41–50% nced Funds 51–60% 61–70% 71–80% 81–90% 91–100% Balanced Funds Age Percentage of Recently Hired Participants, Percentage of Account Balance Invested in Balanc 2014 ed Funds Jun-03 1996 2000 2002 2005 2007 2008 2009 2010 2011 2012 2013 2014 Group Group Zero Zero 1–10% 1–10% 11–20% 11–20% 21–30% 21–30% 31–40% 31–40% 41–50% 41–50% 51–60% 51–60% 61–70% 61–70% 71–80% 71–80% 81–90% 81–90% 91–100% 91–100% Age Equity, bond, money, and/or Company Stock in 401(k) Plans With Company Stock, by Participant Age Group Zero 1–10% 11–20%d 21–30% 31–40% 41–50% 51–60% 61–70% 13.5% 71–80% 81–90% 10.3% 91–100% Tenure (years) 20s 39.5% Zero 4.4% 1–10%3.9% 11–20%3.5% 21–30% 2.2%31–40% 2.2% 41–50% 3.1% 51–60% 1.7% 61–70% 1.7% 71–80% 1.6% 81–90% 36. 91–100% 1% Plans Without Company Stock, GICs, or Other Stable-Value Funds 20s 33.2% 3.8% 3.2% 2.9% Non-Target 1.9% - 2.0% 2.7% 1.5% 11% 1.6% 1.7% 45.4% Age Group 2006 2007 2008 2009 2010 a,b 2011 2012 2013 2014 Group Zero All balanced funds 1–10% 11–20% 18% 18%21–30% 17% 31–40% 19% 18%41–50% 18% 51–60% 21% 21%61–70% 21% 71–80% 21% 21%81–90% 20% 91–100% 47.4% 21.8% 7.8% 11.4% 5.3% 20s 20s 30. 30.8% 4% 2. 2.8% 4% 2. 2.6% 6% 2. 2.1% 5% 1. 1.5% 7% 1. 1.9% 5% 2. 2.9% 6% Dec-03 1. 1.6% 4% 1. 1.5% 3% 1. 1.4% 3% 50. 52.3% 8% Group Zero 1–10% >10–20% >20–30%Perc >30–40% entage of Par >40–50% ticipants, >50–60% 2014 >60–70% >70–80% >80–90% >90–100% Percentage of Account Balance Invested in Balanced Funds 20s 50.5% 5.0% 5.5% 4.9% 2.7% 2.5% 2.7% 1.7% 1.6% 1.3% 21.7% 0–2 32.8% 2.0% 1.9% 1.9% 1.3% 1.5% 1.8% 1.1% 10% d 1.3% $3,824 1.1% 53.2% 30s $20,000–$40,000 46.4% 6.8% 5. 42.1% 8% 5.1% 27.1% 3.1% 9.1%2.6% 8.9% 2.7% 1.8.5% 7% 1.7% 1.5% 22.7% Equity, bond, money, and/or 30s 43. Age Group 1% 6.0% 5.1% 4.4% 2.7% 2.4% 2.5% 1.7% 1.9% 1.9% 28.2% Equity B Target-date date balan-ondMoneyGICs and Other Company 20s 37.8% 20s 4.5%48.5% 5.1% 51.1% 4.8% 63.6% 3.2% 64.1% 2.8% 69.6% 2.72. 9%0% 1. 70. 6% 8% 1. 67. 5% 6% 68. 1.4% 1% 34.3% Percentage of Account Balance Invested in Company Stock 30s 30s 39. 38.1% 6% 5. 4.1% 5% 4. 4.5% 3% 3. 4.7% 1% 2. 2.5% 7% 2. 2.2% 4% 2. 2.5% 6% 1. 1. 12. 8% 7% 9% 1. 1.9% 9% 2. 2.1% 1% 33. 36.2% 5% 20s 31.8% 2.3% 2. c2% 2.0% 1.4% 1.5% 2.1% 1.3% 1.2% 10.3% 1.1% 53.2% Age Group Zero 1–10% 11–20% 21–30% 31–40% 41–50% 51–60% 61–70% 9% 71–80% 81–90% 91–100% >2–5 30s 50.6% 34.9%7.2% 2.8% 6.9% 2.5% 6.0% 2.3% 3.4% 1.7% 2.8% 1.7% 2.5%1.8% Jun-04 1.5%1.4% 1.4% 1.4% 1.1% 1.5% 16.48.0% 6% >$40,000–$60,000 42.8% 24.2% c 10.0% 10.0% 7.9% balanced funds; and GICs and/or 40s 50.20s 5% 7.6% 12% 6.0% 11% 5.4% 10% 11% 3.3% 10% 2.7% 10% 13% 2.5% 13% 1.5% 13% 13% 1.5% 12% 1.3% 11% 17.5% 40s 48.1% 6.8% 5.5% 4. funds 8% 3.0% 2.5% 2.4% 1.6% 1.7% 1.7% 21.9% Age Funds Total ced funds Funds Funds Stable-Value Funds Stock 30s 46.4% 30s 7.1%47.9% 6.7% 54.2% 6.0% 59.6% 3.5% 61.2% 2.8% 63.0% 2.68. 6%1% 1. 69. 6% 5% 1. 67. 4% 8% 67. 1.3% 5% 20.6% Age Group Zero 1–10% 11–20% 21–30% 31–40% 41–50% 51–60% 61–70% 8% 71–80% 81–90% 91–100% 40s 40s 43. 45.6% 0% 6. 5.8% 2% 5. 4.0% 9% 4. 4.7% 4% 2. 3.0% 8% 2. 2.5% 4% 2. 2.4% 6% 1. 1.7% 7% 1. 1.8% 8% 1. 1.9% 9% 25. 28.2% 6% 30s 38.2 4.5 3.9 3.4 2.3 2.1 2.1 1.6 1.7 1.9 38.3 20s >5–10 >$60,000–$80,000 31.9% 40.9% 1.6% 4.7% 46.2% 1.6%3.9% 1.5% 22.8% 3.5% 1.1% 2.4% 8.5% 1.4% 2.1% 11.3% 1.8% 1.9% 6.9% 1.1% 1.5% 1.2% 1.6% 1.8% 1.0% 35.7% 55.9% other stable-value funds 45.2% 18.4% 8.1% 7.8% 1.7% 13.3% $3,659 40s 53.30s 1% 7.5% 20% 6.9% 19% 6.3% 18% 20% 3.5% 20% 2.9% 20% 23% 2.5% 23% 1.4% 22% 23% 1.3% 23% 1.1% 22% 13.5% 50s 53.1% 7.7% 5.8% 5.4% 3.4% 2.7% 2.5% Dec-04 1.5% 1.4% 1.3% 15.3% 50s Group 50.7% 1998 6. 2014 9% 19985.3% 2014 4. 2014 9% 3. 2014 1% 1998 2.6% 2014 2.1998 4% 2014 1.5%1998 1.2014 7% 1998 1.6% 2014 19.3% 40s 20s 50.3% 40s 71.7%7.8%46. 5. 6% 4% 6.7% 52. 4. 8% 1% 6.2% 57. 3.8% 5% 3.6% 59. 2.3% 4% 2.8% 59. 1.7% 9% 2.65. 5% 1.8% 0% 1. 67. 5% 1.2% 2% 8% 1. 65. 0. 3% 9% 6% 67. 1. 0.6% 2% 6% 16. 6.8% 0% 11.6% Equity, bond, money, and/or 11.1% >10–20 50s 50s >$80,000–$100,000 46. 47.6% 5% 48.2%6. 6.2% 6% 6.8% 5. 4. 50.1% 0% 8% 5.4% 4. 4.8% 5% 20.8% 4.6% 3. 3.0% 1% 2.9% 6.9%2. 2.6% 5% 2.5% 11.6% 2. 2.6% 4%2.0% 1. 1.6.0% 7% 7%1.6% 1. 1.7% 7% 1.9% 1. 1.8% 8% 2.7% 22. 24.21.3% 5% 7% 30s 40s 43. 32.5% 5 5.2.1% 8 4.2.0% 7 4.2.0% 0 2.1.4% 6 2.3 1.6% 2.1 1.9% 1.6 1.2% 1.7 1.5% 1.8 1.3% 29.52.6% 8 40s 22% 21% 20% 22% 22% 22% 26% 26% 25% 26% 27% 26% 50s 54.5% 7.3% 6.6% 6.1% 3.7% 3.1% 2.7% 1.5% 1.3% 1.1% 12.3% 60s 59.0% 6.8% 4.7% 4.5% 2.9% 2.5% 2.2% 1.3% 1.2% 1.1% 13.8% 7% Jun-05 20s balanced funds; and company stock 66.9% 29.7% 7.4% 55.0% 37.2% 47.0% 19.2% 8.0% 5.1%4.3% 4.2% 4.0% 7.3% 1.0%5.9% 3.7% 1.2% 10.5% 19.5% 3.6% 50s 30s 52.3% 50s 58.1%8.1%47. 11. 8% 9% 6.4% 53. 7. 4% 3% 6.0% 58. 4.0% 9% 3.7% 58. 3.7% 3% 2.9% 59. 2.5% 1% 2.64. 5% 2.2% 2% 1. 66. 5% 1.6% 7% 1. 64. 1. 3% 2% 5% 65. 1. 0.9% 2% 6% 14. 6.1% 2% >20–30 >$100,000 53.3% 7.9% 54.1% 5.9% 16.1% 5.0% 3.3% 6.7% 2.8% 12.1%2.4% 5.7% 1.9% 1.7% 1.5% 14.5% 40s 60s 60s 51. 50. 32.4% 50s 3% 0% 6. 5.8% 1% 2.2% 17% 4. 4.2% 2% 2.2% 17% 4. 4.1% 2% 2.2% 17% 19% 2. 2.8% 7% 1.5% 19% 2. 2.4% 4% 1.6% 19% 22% 2. 2.4% 3% 1.8% 22% 1. 1.5% 5% 1.2% 22% 23% 1. 1.6% 6% 1.4% 23% 1. 1.7% 7% 1.2% 23% 21. 23.8% 7% 52.3% 50s 46.2 6.2 4.8 4.3 2.8 2.5 2.1 1.5 1.6 $3,700 1.7 26.2 60s 60s 54. 60.4% 3% 6. 6.3% 0% 4. 5.3% 4% 4. 5.2% 2% 3. 2.8% 3% 2. 2.4% 8% 2. 2.5% 2% 1. 1.3% 4% 7% 1. 1.6% 2% 1. 1.5% 0% 11. 18.6% 3% Equity, bond, money, and/or All 50.0% 6.9% 5.5% 4.9% 3.1% 2.6% 2.6% 1.5% 1.5% 1.4% 20.1% 30s 67.8% 37.1% 8.0% 46.9% 39.6% 7.3% 5.1% 5.7% 4.1% 1.2% 3.2% 1.6% 9.4% 2.6% 60s 40s All 57.4% 52.8%7.4% 13.0% 5. 47.4% 6% 8.2% 5.4% 21.8% 5.8% 3.2%4.0%7.8%2.6% 3.0% 11.4% 2.3% 2.4% 8.4%1.5.3% 3% 1.8% 1. 8. 1. 1% 3% 3% 1. 1.0% 1% 12. 6.6% 7% >30 60s 60s57.5% 45.5% 7.7% 9% 50.1% 5.5% 9% 53. 9%9% 4.6% 10%53.6% 3.1% 10% 55. 11% 2% 2.5% 12% 60.7% 1.9% Dec 13% -05 63.13% 9% 1.4% 14% 60.6% 1.3%14% 63.9% 1.2% 13% 13.3% 50s A Allll 43. 42. 34.4% 6% 5% 5. 5.6% 2% 2.3% 4. 4.4% 5% 2.0% 3. 4.9% 2% 2.2% 2. 2.7% 6% 1.4% 2. 2.4% 3% 1.7% 2. 2.4% 6% 1.6% 1. 1.7% 6% 1.0% 1. 1.7% 7% 1.2% 1. 1.8% 8% 1.0% 31. 29.6% 1% 51.1% 60s 49.6 5.8 4.3 3.8 2.6 2.4 2.0 1.4 1.5 1.6 25.1 balanced funds, company stock; and c All 46.6% 6.2% 4.9% 4.4% 2.8% 2.4% 2.4% 1.6% 1.7% 1.7% 25.2% All 53.4% 6.9% 6.4% 5.9% 3.4% 2.8% 2.6% 1.4% 1.3% 1.1% 14.8% Age d Percentage of Account Balance Invested in Target-date Funds 15% All 50s 40s Tenure (years) 64.5% 50. 41.4% 7%39.6% 14. 4.7% 9. 1% 7% 41.8. 6% 3.8% 5% 34.3% 5.3.4% 8% 7.3% 4.0% 2.3%5.9% 3.0% 2.1% 7.3% 5.2. 1% 5% 1.9%1.6% 1.9% 1.4% 4.4% 1. 1.4% 7% 1.6% 8.0% 1.1% 1.7% 2.6% 7.1% 35.9% All Plans With GICs 49.2% All c and/or Other Stable-Value Funds 7.2%47.6% 6.3% 52.7% 5.8% 59.9% 3.5% 60.9% 2.8% 63.0% 2.67. 5%5% 1. 68. 5% 6% 1. 66. 3% 3% 67. 1.2% 2% 18.7% 60s 36.1% 2.3% 1.8% 1.9% 1.3% 1.6% 1.5% 0.9% b 1.0% $3,832 0.8% 50.7% Ag Age e GICs and/or other stable-value P Perc ercent entage of age of A Ac cc count ount B Bal alanc ance I e Inves nvestted i ed in Target n Target-Dat -dat Jun-06 e Funds e Funds All 42.5 5.1 4.1 3.6 2.4 2.2 2.1 1.5 1.6 1.7 33.1 Ag Age e PP erc erc ent ent age of age of A A cc cc ount ount B B al al anc anc e I e I nves nves ted i ted i n Target n Lifecy-dat cle Funds e Funds 15% Group Zero 1–10% 11–20% 21–30% 31–40% 41–50% 51–60% 61–70% c 71–80% 81–90% 91–100% 0–2 6% 5% 4% 5% 7% 6% 9% 7% 7.5% 5% 8.4% 6% 9% 9% 60s 53.6% 13.2% 7.6% 5.3% 3.7% 2.7% 2.3% 1.8% 1.3% 1.0% 7.5% $20,000–$40,000 50s 60.5% 37.8% 11.3%32.5% 36.9% 31.1% 29.6% 5.8% 10.1% 6.6% 10.6% 8.2% 5.9% 1.9% 1.3% 6.7% 3.5% 13.4% 6.5% 2.6% Age Percentage of Account Balance Invested i a n Lifecycle Funds c c All 32.8% funds 2.0% 1.9% 39.6% 1.9% 11.0% 1.3% 6.2% 1.5% 1.8% 5.7% 2.6% 1.1% 12.8% 1.3% 15.0% 1.1% 53.2% Group Group Zero Zero 1–10% 1–10% 11–20% 11–20% 21–30% 21–30%Percentage of Account Balance Invested in Target-Date Funds H 31–40% 31–40% olding Target 41–50% 41–50% -Date Funds51–60% 51–60% 61–70% 61–70% 71–80% 71–80% 81–90% 81–90% 91–100% 91–100% Percentage of Account Balance Invested in Target-date Funds Group Group Zero Zero 1–10% 1–10% 11–20% 11–20% 21–30% 21–30% 31–40% 31–40% 41–50% 41–50% 51–60% 51–60% Dec-0661–70% 61–70% 71–80% 71–80% 81–90% 81–90% 91–100% 91–100% 17% >2–5 15% 14% c 12% 14% 15% 15% 17% 18% 18% 18% 19% 19% 20s 53.6% 2.8% 2.4% 2.2% 1.5% 1.5% 2.5% 1.3% 1.4% 1.4% 29.5% All >$40,000–$60,000 56.1% 12.1% 36.7%7.5% 26.1% 5.2% 3.6%7.5% 2.7% 9.3% 2.3% 1.5% 1.7% 1.2% 12.3% 0.9% 6.8% Plans Without Company Stock, and GICs, and/or Other Stable-Value Funds Group 60s Zero 50.0% 1–10% 34.7% 12.1% 11–20% 31.9% 21–30% 27.1% 31–40% 4.8% 8. 41–50% 7% 15.7% 51–60% 7.8% 2.3% 61–70% 13.3% 71–80% 3.7% 5. 81–90% 7% 2.0%91–100% Tenure (years) 20s 20s 43. 42.7% 1% Zero 1. 1.8% 5% 1–10%1. 1.4% 6% 11–20%1. 1.4% 7% 21–30% 1. 1.2% 1%31–40% 1. 1.5% 2% 41–50% 2. 2.4% 2% 51–60% 1. 1.3% 1% 61–70% c 1. 1.1% 2% 71–80% $3,893 1. 1.0% 2% 81–90% 42. 45. 91–100% 4% 9% Age Age Group 18% 20s 47.>5–10 8% 2.1% 2006 24% 1.9%2007 23% 1.8% 21% 2008 22% 1.3% 200923% 1.5% 2010 23% 25% 2.2% 2011 27% 1.2012 1% 26% 27% 1. 2013 2% 28% 1. 2014 5% 26% 37.5% 20s 70.0% 2.5% 2.6% 2.4% Percentage of Account Balance Invested in Target-Date Funds 1.4% 1.4% 1.5% 1.1% 1.1% 1.0% 15.0% >$60,000–$80,000 42.5% 21.0% 6.4% 9.5% 6.4% 1.8% 8.2% 11.6% 30s Source: Tabul 61. Age Group ations f 7% rom EBR 4. I/IC 4% I Participant-D 3. ir2% ected Retirement 2.8% Plan Data Coll1. ect 8% ion Project. 1.7% 1.9% Jun-07 1.2% 1.3% 1.2% 18.6% All 64.8% 36.9% 9.1% 41.5% 34.9% 6.6% 5.7% 8.6% 4.9% 1.6% 4.6% 2.4% 8.6% 2.6% 20s 56.3% 2.9% 2.5% 2.4% 1.5% 1.5% 1.7% 1.2% 1.2% 1.2% 27.7% 0–2 41.1% 1.3% 1.3% 1.4% 1.1% 1.5% 3.4% 0.9% 1.1% 21% 0.9% 46.1% 30s 30s a 50. 53.6% 7% 3. 3.1% 4% 2. 2.5% 8% 2. 2.5% 4% 1. 1.7% 7% 1. 1.6% 7% 1. 2.9% 0% 1. 1.4% 4% 1. 1.6% 6% 1. 1.8% 8% 31. 27.2% 5% Group Zero >10–20 1–10% >10–20% 27% 26% >20–30% 26% >30–40% 26% 26% >40–50% 26% >50–60% 29% 29% >60–70% 29% >70–80% 30% 30% >80–90% 28% >90–100% 20s 20s 29.4% 32.4% 31.3% 47.5% 49.4% 50.5% 55. 7.0% 3% 59. 5.4% 3% 2.1% 59.4% 58.6% 60.6% Age Group 30s 30s The anal>$80,000–$100,000 ysis71. 58. incl Zero 4% 6% udes the 8.1 m 3. 3.1–10% 8% 7% illion participant 3. 2. 45.0% s i 11–20% 8% 3% n plans with com 2. 2. 21–30% 9% 5% pany 20.1% stock at y 1. 1. ear 31–40% 7% 6% -end 2014. 6.0%1. 1.41–50% 4% 6% 9.6% 1. 1.51–60% 3% 8% 0. 1.61–70% 1.8% 3% 9% 1. 0.71–80% 8% 5% 11.1% 0. 1.8% 6% 81–90% 22. 11. 91–100% 9% 9% 40s 66.9% 4.8% 3.1% 2.7% 1.8% 1.6% 1.6% 1.1% 1.1% 1.0% 14.3% Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. Dec-07 22% >2–5 30s 65.2% 43.8%4.4% 1.9% 3.3% 1.7% 2.8% 1.7% 1.7% 1.5% 1.6% 1.8% 1.5%3.2% 1.0%1.1% 1.0% 1.1% 1.0% 1.1% 16.41.0% 4% b >20–30 30s 25% 26% 45.6% 25% 31.7% 24% 24% 7.6% 25% 27% 7.6%26% 2.8% 26% 28% 28% $3,661 26% 40s 40s 56. 59.9% 5% 4. 4.2% 0% 3. 2.0% 9% 2. 2.6% 7% 1. 1.8% 8% 1. 1.7% 7% 1. 1.8% 8% 1. 1.3% 4% 1. 1.5% 4% 1. 1.6% 5% 21. 23.1% 9% 20s 41.0% 1.5% 1.5% 1.4% 1.1% 1.2% 1.9% 1.1% 1.0% 1.0% 47.3% Row per a >$100,000 centages may not add up to 100 percent 50.0% because of rounding. 17.1% 4.2% 8.9% 1.6% 11.9% 20s 40s 40s 64. 74. 39.4% 7% 1% 30s 3. 4.9% 1% 1.0% 28.5% 2. 3.9% 1% 1.0% 35.5% 2. 2.7% 5% 1.1% 44.3% 1. 1.7% 5% 0.9% 48.3% 1. 1.3% 6% 49. 1.2% 8% 1. 1.55. 6% 2% 1.7% 9% 5.5% 0. 1. 58. 7% 1% 1.0% 7% 5.7% 0. 1. 58. 3% 7% 1.0% 2% 23% 59. 0. 1.4% 7% 7% 0.9% 17. 9.4% 7% 50.8% The analysis is based on samples of 1.2 million participants with two or fewer years of tenure in 1998 and 4.1 million participants with two or fewer years of tenure in 2014. 50s 70.0% 4.9% 2.9% 2.5% 1.7% 1.5% 1.4% 0.9% 1.0% 1.0% 12.3% >5–10 40s 51.5% 3.4% 2.7% 52.0% 2.4% 21.9% 1.9% 7.5% 2.2% 9.3% 3.1% 3.6% 1.1% 1.2% 1.3% 29.1% 40s 70.>30 1% 4.6% 13% 3.1% 16% 2.7% 15% 17% 1.6% 17% 1.4% 18% 19% 1.4% Jun 19% -08 0.9% 19% 20% 0.9% 20% 0.8% 18% 12.5% 50s 50s b All 62. 59.9% 4% 4. 4.4% 3% 2. 2. 45.2% 9% 9% 2. 2.6% 6% 18.4% 1. 1.8% 8% 8.1%1. 1.7% 7% 7.8% 1. 1.7% 7% 1. 1.1.7% 2% 3% 1. 1.3% 4% 13.3% 1. 1.5% 5% 18. 20.9% 5% 30s 49.4% 3.1% 2.5% 2.2% 1.6% 1.6% 1.7% 1.3% 1.4% 1.7% 33.5% 30s 40.3% 40s 1.3% 27.4% 1.4% 34.6% 1.5% 42.6% 1.2% 46.6% 47. 1.6% 2% 52. 3.9% 8% 55. 1.1% 8% 54.1.2% 8% 57.7% 1.0% 45.6% 50s 50s Mino 67. 76. r in6% 0% vestment optio 4. 3. n2% 8% s are not shown2. 2. ; th 7% 9% erefore, row percen 2. 2.4% 5% tages will no1. 1. t add to 100 percen 4% 6% 1. 1.t. Percen 5% 3% tages are dol 1. 1.1% 4% lar-weighted averages. 0. 1.0% 7% 1. 0.7% 3% 0. 1.6% 3% 15. 8.5% 5% 50s 48.7% 19.7% 7.9% 12.2% 5.3% 60s 74.7% 4.1% 2.2% 2.0% 1.4% 1.3% 1.2% 0.8% 0.8% 0.8% 10.9% >10–20 61.3% 4.8% 3.2% 2.7% 2.0% 2.2% 2.6% 1.2% 1.5% 2.2% 16.4% Account Size $4,089 50s 72.8% 4.6% 2.8% 2.4% 1.6% 1.3% 1.2% 0.8% 0.8% 0.8% 10.9% c 60s 60s Plans With Company Stock 63. 65.8% 6% 3. 4.0% 8% 2. 2.4% 4% 2. 2.2% 3% 1. 1.6% 6% 1. 1.5% 5% 1. 1.5% 5% 4.5% Dec-08 1. 1.0% 1% 4.8% 1. 1.2% 2% 1. 1.4% 4% 17. 19.6% 5% 40s 56.2% 60s 3.9% 2.9% 2. 42.0% 5% 19.5% 1.7% 1.6% 8.4% 1.6% 14.9% 1. 8.1% 3% 8% 1.4% 1.5% 25.4% 40s A target-date fu 42.3% nd typical1.5% ly rebalances its portfol 1.5%io to become l 1.6% ess focused on growth 1.3% and more focu 1.6% sed on income as i 4.4% t approaches an 0.9% d passes the target date of th 1.0% e fu 0.9% nd, which 43.0% 60s 60s 80. 70.7% 2% 50s 3. 3.0% 7%28.1% 2. 2.2% 3% 35.3% 2. 1.0% 9% 42.7% 1. 1.2% 4% 46.2% 1. 1.1% 3% 46.8% 1. 0.52. 9% 3%4% 0. 0. 55. 9% 6% 5% 0. 1. 53. 6% 2% 6% 57. 0. 1.5% 2% 0% 14. 7.3% 5% >20–30 <$10,000 67.8% 5.5%12% 3.3% 11% 11% 2.7% 12% 2.1% 11% 12% 2.1% 16% 2.4% 16% 15% 1.3% 15% 1.2%14% 1.0% 13% 10.7% All 65.8% 4.4% 2.9% 2.5% 1.7% 1.5% 1.7% 1.0% 1.1% 1.1% 16.3% c 12% 60s 77.4% 3.6% 2.1% 1.9% 1.3% 1.1% 1.0% 0.7% 0.7% 0.7% 9.5% is usually included in the fund’s name. $20,000–$40,000 Plans With GICs and/or Other Stable-Value Funds 37.3% 15.8% 5.2% 7.8% 5.2% 24.0% A Allll 55. 57.9% 5% 3. 3.5% 7% 2. 2.6% 6% 2. 2.4% 4% 1. 1.7% 7% 1. 1.6% 6% 1. 1.8% 8% 1. 1.2% 3% 1. 1.4% 4% 1. 1.5% 5% 24. 26.0% 8% 50s 50s 59. 43.0% 3% 4.2% 1.5% 2.9% 1.4% 2.5% 1.6% 1.8% 1.2% 1.6% 1.6% 1.5% 4.3% 1.2% 0.8% 1.3% 1.0% 1.5% 0.8% 22.3% 43.0% All 74.5% 60s 3.5%26.1% 2.9% 32.3% 2.6% 39.1% 1.5% 41.8% 1.3% 43.1% 1.49. 2%0% Jun-09 0. 51. 8% 5% 0. 48. 8% 9% 55. 0.7% 4% 10.2% >30 All 62.$10,000–$20,000 4% 71.6%3.7% 5.4%26% 2.6% 3.0% 23% 2.3% 22% 2.4% 26% 1.6% 1.8% 25% 1.5% 26% 1.6% 28% 1.6%1.8% 29% 1.1% 30% 0.9% 30% 1.3% 0.8%30% 1.4% 0.9% 28% 20.4% 9.7% d Age Percentage of Account Balanc Fie I gur nves e 35 ted in Non-Target-date Balanced Funds 11% $4,167 GICs are guaranteed investment contracts. >$40,000–$60,000 20s 35.3% 36.8% 20.6% 38.1% 6.0% 8.8% 6.8%5.1% 0.8% 6.8% 4.3% 18.9% All 68.7% 4.2% 2.9% 2.5% 1.6% 1.4% 1.4% 0.9% 0.9% 0.9% 14.7% 4.0% 3.9% 60s Ag Age e 44.6% 1.5% 1.2%P Perc ercent entage of age of 1.4% A Ac cc count ount B B 1.0% al alanc ance I e Inves nvestted i 1.4% ed in Non-Target n Non-Target 4.4% -Dat -date B e Bal alanc anc 0.7% ed Funds ed Funds 0.8% 0.7% 42.4% 60s 62.>$20,000–$30,000 8% 3.8% 26% 2.5% 25% 2.2% 22% 27% 1.6% 26% 1.5% 26% 28% 1.3% 29% 1.0% 30% 31% 1.1% 31% 1.3% 30% 20.8% All 52.4% 3.2% 2.4% 2.1% 1.7% 1.9% 2.9% 1.1% 1.2% 1.3% 30.0% Ag Age e All 28.3% 34.P 3% P erc erc ent ent age of age of 44.4% A A cc count count B 47. B alal anc 9% anc e I e I nves nves t49. ed i ted i 8% n Non-Target n Non-Li a 55. fec2% y -dat cle B e B alal anc anc 57. ed Funds ed Funds 3% 12% 56.3% b 58.9% Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment pro Dec duc -09t primarily invested in the security indicated. Group Zero 30s 1–10% 11–20% 21–30% 45.2% 31–40% 26.3% 41–50% 9.5% 51–60% 6.2% 61–70% 1.1% 71–80% 6.3% 81–90% 91–100% >$60,000–$80,000 35.5% 22.1% 5.7% 6.4% 6.6% 16.8% Many Recently Hired 401(k) Plan Participants Hold Balanced Funds Age Percentage of Account Balance Invested in Non-Lifecycle Balanced Funds All Group Group Zero Zero 41.1% >$30,000–$40,000 1–10% 1–10% 1.3% 11–20% 11–20% 25% 1.3% 25%21–30% 21–30% 1.4% 23% 31–40% 31–40% 26%1.1% 26%41–50% 41–50% 1.5% 26% 51–60% 51–60% 28%3.4% 28%61–70% 61–70% 0.9% 29% 71–80% 71–80% 30%1.1% 31%81–90% 81–90% 0.9% 30% 91–100% 91–100% 46.1% All 54.6% 3.5% 2.6% 2.2% 1.6% 1.5% 1.6% 1.2% 1.3% 1.4% 28.5% 40s 50.0% 19.1% 8.1% 6.9% 1.5% 12% 8.4% Group Zero 1–10% 11–20% 21–30% 31–40% 41–50% 51–60% 61–70% 71–80% 81–90% 91–100% Group Zero 1–10% 11–20% 21–30% 31–40% 41–50% 51–60% 61–70% 71–80% 81–90% 91–100% Holding Non-Target-D aate Funds b $3,889 20s >$80,000–$100,000 83.3% 3.4% 2. 37.8% 4% 1.7% 20.1% 0.8% 5.4%0.6% 6.9% 0.6% 0.6.5% 4% 0.4% 0.3% 14.4% 6.1% Percentage of Account Balance Invested in Non-Target-Date Balanced Funds Jun-10 4.3% 3.8% Group Zero 1–10% Percent 11–20% age of recent 21–30% ly hired 40 31–40% 1(k) participant 41–50% s holding bal 51–60% anced f 61–70% unds, 1998–2014 71–80% 81–90% 91–100% >$40,000–$50,000 24% 25% 23% 25% 26% 25% 27% 27% 27% 29% 30% 29% 50s 46.0% 17.0% 7.6% 8.3% 1.7% 13.7% 20s 20s 85. 86.6% 3% 1. 2.9% 2% 1. 1.6% 8% 1. 1.2% 0% 0. 0.6% 5% 0. 0.4% 4% 0. 0.4% 4% 0. 0.3% 3% 12% 0. 0.3% 3% 0. 0.3% 3% 6. 7.4% 5% Percentage of Account Balance Invested in Non–Target-date Balanced Funds 20s 20s >$100,000 83. 77.A 1% 7% ge Group 4. 3.1% 2% 2006 2. 3. 42.3% 9% 0%2007 1. 2.4% 9% 16.4% 2008 1. 0.7% 3% 2009 3.5%1. 0.5% 1% 2010 8.9% 1. 0.1% 5% 2011 0. 0.5.2% 2012 5% 4% 0. 0. 2013 3% 5% 0. 0. 2014 3% 3% 14.2% 7. 6.5% 5% Percentage of Account Balance Invested in Non-Target-Date Balanced Funds 30s 81.4% 4.7% 3.6% 2.7% 1.2% 0.9% 0.8% 0.4% 0.4% 0.3% 3.7% Tenure (years) Zero 1–10% 11–20% 21–30% 31–40% 41–50% 51–60% 61–70% 9% 71–80% 81–90% 91–100% Age 60s 39.2% 15.7% 8.1% 9.1% 2.1% 21.2% >$50,000–$60,000 24% 24% 22% 24% 25% 24% 25% 26% 26% 28% 29% 28% 20s 78.8% 3.3% 3.5% 2.9% 1.7% 1.4% 1.2% Dec-10 0.4% 0.4% 0.3% 6.2% 30s 30s 84. 82.9% 4% 3. 3.3% 7% 2. 2.7% 7% 1. 2.1% 8% 1. 0.0% 9% 0. 0.6% 7% 0. 0.6% 5% 0. 0.3% 4% 0. 0.3% 4% 0. 0.3% 3% 4. 5.7% 2% Age All 37.2% 19.2% 4.3% 7.3% 5.9% 19.5% 30s 30s 81. 75.5% 4% 4. 5.4% 7% 3. 5.2% 0% 3. 2.3% 8% 1. 1.1% 7% 1. 0.3% 8% 1. 0.7% 1% 0. 0.5% 5% 0. 0.4% 5% 0. 0.3% 3% 4. 4.5% 9% 20s 22.5% 21.2% 18.5% 16.7% 15.8% 14.0% 12.8% 10.1% $3,972 8.6% G Age Group roup 0–2 40s 1998 80. Plans With Company Stock Zero 1 6% 999 88.2% 2000 4.1–10% 9% 20 1.4% 01 3. 11–20% 8% 2002 1.1% 200 3. 21–30% 1% 3 0.9% 20041. 31–40% 5%200 0.5% 5 1. 241–50% 006 1% 0.5% 2007 0.51–60% 9%2.1% 2008 0. 2009 61–70% 5%0.2% 2010 0.71–80% 4% 0.2% 2011 0.3% 81–90% 201 0.1% 2 2013 2.91–100% 9% 4.9%2014 >$60,000–$70,000 23% 24% 22% 23% Fig 24% ure 41 23% 25% 3.9%25% 4.1% 25% 27% 28% 27% 30s 78.0% 4.8% 4.5% 3.6% 1.7% 1.2% 1.0% 0.5% 0.4% 0.3% 3.9% d 40s 40s 82. 83.5% 3% 4. 3.1% 8% 3. 3.0% 1% 2. 2.5% 2% 1. 1.1% 2% 0. 0.8% 8% 0. 0.7% 6% Jun-11 0. 0.3% 4% 0. 0.3% 3% 0. 0.3% 3% 4. 4.0% 2% Group Zero 1–10% >10–20% >20–30% >30–40% >40–50% >50–60% >60–70% >70–80% >80–90% >90–100% 40s Plans With Company Stock and GICs 74.8% 20s 5.8% 5.1% and/or Other Stable-Value Funds 4. 27.5% 2% 42.1% 2.0% 1.5% 2.8% 1.3% 3.3% 0. 1.7% 6% 0.5% 0.15.0% 4% 3.8% 20s 20s >2–5 40s 27.0% 81. 91.4% 28.3% >$70,000–$80,000 1% 30s86.9% 27 4. .1% 6% 1.2% 22.27.3% 5% 1.9%26% 3.5% 0.9% 32.7% 21.9% 1.5% 23% 35. 2.7% 1 0.6% % 18. 22% 2% 1.1% 38.9% 22% 1.4% 0.3% 16. 43. 2% 0.7% 5% 23% 48. 1.0% 15. 5% 0.2% 22% 1% 0.8% 51.1% 24% 0.14. 8% 0.3% 0% 63.6% 2.0% 24% 0. 64.1% 12. 5% 0.2% 24% 6% 0.2% 69.6 26% 0. 11. %4% 0.2% 2% 0.2% 72.0% 27% 11. 0.7 3% 0. 9% 0.2% 0.1% 27% 8% 67.6% 3.9% 4.6% 4.7% 68.1% 11% 50s 80.2% 4.9% 3.8% 3.2% 1.7% 1.2% 1.0% 0.5% 0.4% 0.3% 2.7% Recently Hired 401(k) Participants Tend to Be Less Likely to Hold Company Stock 40s 77.2% 5.3% 4.6% 4.0% 2.0% 1.4% 1.1% 0.6% 0.4% 0.3% 3.2% 50s 50s 82. 83.1% 4% 30s 3. 4.9% 2% 3. 3.0% 1% 2. 2. 37.1% 7% 5% 28.0% 1. 1.4% 3% 0. 1.0% 9% 3.5% 0. 0.9% 7% 5.1% 0. 0. 3.3% 4% 4% 0. 0.3% 4% 0. 0.16.7% 3% 3% 3. 3.4% 6% 20s 89.5% 1.6% 1.1% 0.8% 0.4% 0.3% 0.2% 0.2% 0.2% 0.2% 5.4% $20,000–$40,000 33.3% 17.7% 5.5% 4.4% 1.7% 15% 13.8% 14.7% >5–10 >$80,000–$90,000 83.9% 3.1%23% 2.3% 23% 21% 1.7% 21% 1.0% 23% 21% 1.2% 23% 2.1% Dec 23% -11 23% 0.3% 25% 0.2%$3,619 26% 0.2% 26% 3.9% 30s 30s 50s 50s 29.0% 74. 80. 88.1% 31.0% 8% 4% 28 5. 4. .3% 6% 6% 1.5% 26.5%5. 3.0% 5% 1.2% 33.1% 36. 4. 2.3% 9% 2 0.9% % 39.8% 2. 1.6% 3% 0.5% 42.8% 47. 1. 1.1% 7% 9% 0.6% 54.2% 0. 1.5% 9% 2.5% 59.6% 0. 0. 61.2% 7% 5% 0.1% 63.00. 0. %4% 5% 0.2% 68.1% 0. 0.6 3% 4% 9. 0.2% 5% 67.8% 3. 3.5% 6% 4.3% 67.5% 40s 21.3% 21.1% 17.7% 15.8% 14.4% 13.9% 5.1% 13. 4.1% 3% 12.4% 14.8% 60s 82.0% 4.3% 3.2% 2.8% 1.6% 1.2% 1.0% 0.5% 0.4% 0.3% 2.6% Per 40s centage of recently hired parti41.2% cipants of19.3% fered and holdi 4.3% ng company6.4% stock, b 4.3% y participant age,199818.8% –2014 50s 76.6% 5.5% 4.5% 4.1% 2.2% 1.5% 1.2% 0.6% 0.4% 0.3% 3.1% 13% >$40,000–$60,000 37.9% 15.9% 6.3% 5.0% 1.7% 12.6% 16.0% 60s 60s 83. 83.>$90,000–$100,000 8% 0% 3. 3.7% 5% 22% 2. 2.6% 6% 22% 2. 2.3% 5% 21% 20% 1. 1.4% 3% 22% 0. 1.0% 9% 20% 23% 0. 0.8% 9% 22% 0. 0.4% 4% 22% 24% 0. 0.3% 3% 26% 0. 0.3% 3% 25% 3. 3.8% 9% >10–20 30s 86.4% 81.3%3.1% 4.2% 2.1% 3.3% 1.5% 2.6% 0.7% 1.4% 0.6% 1.5% 0.4%1.9% 0.3%0.3% 0.3% 0.3% 0.3% 0.3% 4.4% 2.9% 40s 40s 60s 60s 30.5% 81. 77. 85.2% 33.6% 0% 9% 30 4. 4. .8% 5% 1% 1.5% 27.9%4. 2.9% 0% 1.3% 33.7% 35. 3. 2.6% 8% 7 1.0% % 39.8% 2. 1.5% 2% 0.6% 42.1% 46. 1. 1.7% 1% 6% 0.7% 52.8% 1. 0.9% 5% 3.2% 57.8% 0. 0. 59.3% 7% 5% 0.2% 59.90. 0. %4% 5% 0.2% 65.0% 0. 0.6 3% 4% 7. 0.2% 2% 65.6% 3. 3.8% 9% 5.9% 67.6% 50s 21.4% 20.9% 17.6% 15.4% 13.8% 13.5% Jun-12 13.0% 12.4% 13.3% All 81.3% 50s 4.6% 3.5% 2. 37.5% 8% 17.0% 1.4% 1.0% 4.4% 0.9% 8.0% 0. 6.2% 4% 0.4% 0.20.3% 3% 3.4% 10% 60s 77.8% 5.1% 4.1% 3.8% 2.0% 1.5% 1.3% 0.6% 0.4% 0.3% 3.0% Age Group 19>$60,000–$80,000 98 1999 2000 200138.5% 2002 20014.8% 3 2004 200 5.8% 5 2006 200 4.8% 7 2008 2.1% 2009 201013.0% 2011 2012 15.6% 2013 2014 >$100,000–$200,000 22% 20% 19% 18% 19% 18% 19% 19% 19% 21% 23% 23% >20–30 A Allll 84. 82.1% 9% 80.5%3. 3.5% 7% 4.7% 2. 2.7% 7% 3.7% 2. 2.0% 3% 3.0% 1. 1.2% 1% 1.7% 0. 0.8% 7% 1.5% 0. 0.6% 7%1.6% 0. 0.4% 3%0.4% 0. 0.3% 3% 0.3% $3,785 0. 0.3% 3% 0.3% 4. 4.3% 7% 2.4% 40s 84.5% 3.7% 2.7% 2.0% 1.0% 0.7% 0.5% 0.3% 0.3% 0.3% 4.0% 50s 30.9% 34.9% 60s 32.1% 29.2% 33.9% 35. 31.7% 5% 40.3% 17.1%43.3% 47.4.8% 8% 53.4% 9.1% 58.0% 4.0% 58.7% 9.6% 3.4% 59.1% 64.2% 6 20.7% 6.7% 64.5% 65.6% 50s All 75. 86.7% 6% 5.3% 1.5% 4.8% 1.2% 3.9% 1.1% 1.9% 0.6% 1.5% 0.6% 1.3% 3.2% 0.6% 0.1% 0.5% 0.2% 0.4% 0.1% 4.3% 4.7% All 81.5% 4.3% 3.1% 2.5% 1.3% 0.9% 0.8% 0.5% 0.4% 0.3% 4.5% Source: Tabulations from 60s EBRI/ICI P 19. arti 8% cipant-Directed R 20.1% etirement P 16. lan D 7%ata Colle 14. ction P 0% roject. 13.2% 13.1% 13.9% 13.0% 13.1% Dec-12 c 11% All >$80,000–$100,000 77.>$200,000 6% 4.9% 18% 4. 38.0% 3% 15% 3.7% 13% 13.2% 13% 1.9% 13% 4.8%1.4% 12% 4.6% 13% 1.1% 12% 0.2.5% 5% 12% 13% 0.4% 16.4% 15% 0.3% 14% 15.2% 3.7% 20s 60.8% 61.1% 60.5% 58.1% 53.9% 49.6% 49.8% 45.4% 40.0% 35.4% 32.9% 32.3% 30.3% 26.2% 23.0% 27.9% 26.9% >30 81.3% 4.6% 3.5% 2.8% 1.7% 1.3% 1.5% 0.4% 0.3% 0.3% 2.3% S Source: T ource: Tabul abulPlans With Company Stock and GICs, ati ations from ons from E EB BR RI I/ /I IC CI I P Pa arti rtic ciipant-D pant-Diir rected R ected Re eti tiand/or Other Stable-Value Funds rem rement P ent Pllan D an Da ata C ta Co olllle ecti ction P on Pr roj oject. ect. a 60s 60s 50s28.4% 84. 86.9% 34.9% 0% 33 3. .2% 8% 1.4% 29.1%2.9% 1.1% 30.2% 30. 2.2% 7 0.9% % 36.3% 1.2% 0.5% 41.6% 45. 0.8% 5% 0.5% 50.1% 0.6% 3.5% 53.9% 0. 53.6% 3% 0.1% 55.20. %3% 0.2% 60.7% 0.6 3% 3. 0.1% 9% 60.6% 3.6% 4.8% 63.9% S Source: T ource: Tabul abulati ations from ons from E EB BR RI I/ /I IC CI I P Pa arti rtic ciipant-D pant-Diir rected R ected Re eti tirem rement P ent Pllan D an Da ata C ta Co olllle ecti ction P on Pr roj oject. ect. 10% The analysis includes the 20.7 m All illi21. on 401(k 9% ) plan parti 21.3% cipants in the y 18.ear-end 2009 E 0% 16.B 1% RI/ICI 401(k 14. ) database. 8% 13.9% 13.0% 11.4% 11.8% a a >$100,000 41.0% 10.3% 5.0% 4.9% 3.4% 11.7% 16.1% Salary Range 30s Source: T 61.9 abul % ations from 62. 20s 3% EB61. RI/I6% CI Parti60. cipant-D 0% irected R 57.2% etirem 5 31.7% ent P 3.3% lan D 5 a2. ta C 35.2% 3% ollecti4 on P 7.6% roject.43. 3.8% 6% 40.4% 2.9% 37.4% 1.0% 36.2% 33.6 4.5% % 30.0% 11.3% 26.4% 30.7% 29.2% All a 84.3% 3.0% 2.4% 1.8% 1.0% 1.1% 2.0% Jun-13 0.3% 0.2% 0.2% 3.7% a T The anal he analy ys siis s i in ncl cludes the 24.0 m udes the 24.0 miilllliion 401(k on 401(k) ) pl plan parti an partici cipants i pants in n the y the year-end 2011 E ear-end 2012 EB BR RI I/ /I IC CI I 401(k 401(k) ) database. database. b $3,858 2.8% 7% A All ll T T 60s he anal he anal 28.9% y ys siis s84. i in n 88.2% cl cl 31.3% 3% udes the 23.4 m udes the 21.8 m 29 3. .1% 4% 1.4% iilllliion 401(k on 401(k 27.4% ) ) pl pl 2.an parti an parti 6% 1.1% 33.0% ci cipants i pants i 35. 2. n n1% 4 the y the y 0.9% % ear-end 2007 E ear-end 2010 E 39.3% 1.2% 0.5% 42. B BR R 8% I I/ /I IC CI I database. 401(k 47. 0.9% 6% 0.5% ) database. 52.7% 0.7% 2.1% 59.9% 5.6% 0. 60.9% 4% 0.2% 63.00. %3% 0.2% 67.5% 0.6 3% 8. 0.1% 6% 66.3% 3.8% 4.9% 67.2% a Row percentages may not add up to 100 percent because of rounding. Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. All $20,000–$40,000 18% 39.6% 17% 13% 11.0% 19% 20% 6.2% 19% 5.7% 24% 22% 2.6% 25% 25%12.8% 21% 23% 15.0% b b 30s 41.6% 19.4% 6.2% 4.3% 1.6% 6.2% 12.9% Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. The analysis includes the 24.0 million 401(k) plan participants in the year-end 2008 EBRI/ICI 401(k) database. 40s 59.8% 60.6% 59.5% 58.8% 55.9% 52.6% 52.0% 47.3% 43.6% 40.7% 37.9% 37.0% 34.4% 31.4% 27.5% 31.3% 29.1% b b R Ro ow w percentages m percentages m a a ay y not add to not add to 100 percent because of roundi 100 percent because of rounding. ng. So Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. urce: R o Tw abu percentages m lations froA m target-date fund ty EB ay not add up to RI/ICI Particip 100 percent because of roundi ant pical -Dly ir rebal ected ances i Retirem ts portfol ent Plan io D to becom at ng. a Collec e tlie oss focused on grow n Project. th and more focused on i Dec-13 ncome as it approaches and passes the target A Rlo lw percentages m 85.4%ay not add to 3.3% 100 percent because of roundi 2.4% 1.8% ng. 0.9% 0.7% 0.5% 0.3% 0.3% 0.2% 4.2% a A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approaches and passes the et date of the fund, which is usually b 40s 44.2% 11.6% 7.1% 5.0% 1.9% 8.2% 14.5% c c Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. >$40,000–$60,000 20% 23% 21% 26% 28% 27% 30% 26% 26% 28% 27% 28% The analysis includes the 24.9 million 401(k) plan participants in the year-end 2014 EBRI/ICI 401(k) database. a A A R target-date fund ty target-date fund ty ow percentages ma pi pi ycal cal not add up to lly y rebal rebalances i ances i 100 percent because of roundi t ts portfol s portfoliio o to becom to become e lle ess focused on grow ss focused on grow ng. th and m th and mo ore focused on i re focused on in ncom come e as i as it t approa approaches and passes the target date of ches and passes the target date of the fund, w the fund, wh hiic ch i h is s usual usuallly y 50s a 57.6% 58.8% 57.4% 57.9% 53.9% 51.2% 49.5% 45.2% 42.3% 39.6% 37.8% 37 4% .6% 34.4% 31.3% 26.9% 30.8% 29.1% c b date of the fund, which is usually included in the fund’s name. T The analysis includes the 4.1 million recently hired participants (those with two or fewer years of tenure) in 2014. he analysisa includes participants with two o r fewer years o f tenure in the year indicated. $3,973 included in the fund’s name. 6.4% 3.7% b A A target-date fund ty lifecycle fund ty50s pical pical ly rebal ly rebal ances to ances i an i ts portfol ncreasi iongl to becom y conservati e l39.5% ess focused on grow ve portfolio as t 9.3% he target date of the fund, w th and more focused on i 5.8% n hcom ich is e usual as i 6.1% t approa ly included i ches and passes the target date of 2.6% n the fund’s nam 14.1% e, approaches. the fund, w 15.5% hich is usually Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project Minor investment options are not shown; therefore, row percentages will not add to 100 percent. Percentages are dollar-weighed >$60,000–$80,000 18% 23% 20% 24% 24% 24% 26% 23% averages. 22% 25% 22% 24% Row percentages may not add to 100 percent because of rounding. c Jun-14 iin ncl cluded i uded in n the fund’ the fund’s nam s name. e. b 7% A lifecycle fund typically rebalances to an increasingly conservative portfolio as it approaches and passes the target date of the fund, which is usually included in the fund’s name. 60s b 54.1% Note: T 55.5% he analy 53.6% sis includes the 4.1 m 55.7% 51. illion 0% recently 49.5% hired participants (t 47.8% 43. hose w 9% ith tw 40. o or few 4% e 38 r y.ears of tenure) in 2014, the 4% 38.7% 40.5% 4.4 m 36i.8 llion recentl % 30.y 8 hi % red 26.7% 30.0% 27.6% Row percentages may not add to 100 percent because of rounding. a b "B calanc incled f uded i unds n the fund’ ” include 60s s nam mutua e. l funds, bank co llective trusts, life insur 34.1% ance separate8.8% acco unts, and any po 5.9% o led investment pr 6.5% o duct prima3.9% rily invested in a m 18.6% ix o f equities and f 15.5% ixed-inco me securities. Note: “Funds” i Salary information is available for a subset of participants in the EBRI/ICI database 401(k) database. nclude mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approa The analysis incl >$80,000–$100,000 udes the 26.4 million participants i 17% n the y 21% ear-end 2013 E 17% BRI/22% ICI 401(k) database. 21% 20% 23% ches and passes the target date of the fund, which is usually included in 20% 19% 21% 19% 21% Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security indicated. 5% c N No ote: “Funds” i te: “Funds” i c n ncl cl participants in 2013, the 3.6 m ude m ude mu utual tual funds, bank funds, bank col collle ecti cti illion recently v ve trusts, l e trusts, lii hired par f fe e iin nsurance separate accounts, surance separate accounts, ticipants in 2012, the 3.4 m and any and any illion pool pool recently ed i ed in n hired participants in 2011 vestm vestment product ent product pri prim mari arilly y , the 3.2 m i in nvested i vested iin n lli the securi the securi on recently ty ty hi i indi ndi red cated. cated. Dec-14 Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. All A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approa Note: “Funds” i 60.5% ncl61. ude m 0% utual60. funds, bank 0% 58. col 7% lective trusts, l 55.3%ife in 5surance separate accounts, 1.6% 51.0% 46.3% and any 42. pool 0% ed i 38 nvestm .7%ent product ches and passes the target date of the fund, which is usually included in the fund’s 36.2% prim 35 ari .5 ly% invested i 33.0 n% the securi 29.3ty % indicated. 25.7% 29.9% 28.3% b A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approaches and passes the target date of the fund, which is the fund’s name. Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primari 3.l3% y invested in the security i$4,239 ndicated. the security indicated. 6.1% Row percentages m >$100,000 ay not add to 100 percent because of roundi 14% 16% ng. 13% 16% 14% 14% 16% 14% 14% 16% 15% 16% a 4% participants in 2010, the 3.1 million recently hired participants in 2009, the 4.0 m ((more)) illion recently hired participants in 2008, the 3.8 million recently hired Minor investment options are not shown; therefore, row percentages will not add to 100 percent. Percentages are dollar-weighted averages. name. usually included in the fund’s name. ((m ((more)) ore)) So urce: T c abulations fro m EB RI/ICI P articipant-Directed Retirement P lan Data Collection P roject. Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment produc ((more)) t primarily invested in the security indicated. The tenure variable is Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. A target-date fund ty b pically rebalances its portfolio to become less focused on growth and m ((m oore)) re focused on income as it approaches and passes the target date of the fund, w 4% hich is usually d participants in 2007, and the 2.8 million recently hired participants in 2006. A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approac ((more)) hes and passes the target date of the fund, which is Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product GICs are guaranteed investment contracts. primarily invested in the security indicated. Note: The analysis includes 401(k) plan participants with two or fewer years o f tenure in the year indicated and in a plan o ffering co mpany stock as an investment option. generally years working at current employer, and thus may overstate years of participation in the 401(k) plan. Note: The tenure variable is generally years working at current employer, and thus may overstate years of participation in the 401(k) plan. included in the fund’s name. 4% "Funds" include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security usually included in the fund’s name. Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security indicated. c 4% Note: "Funds" incl indi ude m cated. utual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security indicated. GICs are guaranteed investment contracts. Note: "Funds" include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security indicated.

401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2014

401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2014

Volume 423

Pages 80

401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2014

EBRI Issue Brief

Jack VanDerhei

Sarah Holden

Luis Alonso

Steven Bass

Retirement