401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2015

The asset allocations of 401(k) retirement plan savers in their 20s at the end of 2015 differed significantly from the allocations of 401(k) participants in their 20s in the mid-1990s, according to the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI).

The bulk of 401(k) assets were invested in stocks. On average, at year-end 2015, 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 2015 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 2015, 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 2015.
Nearly 65 percent of 401(k) plans, covering nearly three-quarters of 401(k) plan participants, included target-date funds in their investment lineup at year-end 2015. At year-end 2015, 20 percent of the assets in the EBRI/ICI 401(k) database were invested in target-date funds and about half 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 2015, 70 percent of recently hired participants held balanced funds in their 401(k) plan accounts. Balanced funds comprised 41 percent of the account balances of recently hired 401(k) participants at year-end 2015. A significant subset of that balanced fund category is invested in target-date funds. At year-end 2015, 34 percent of the account balances of recently hired participants were invested in target-date funds.
401(k) participants’ investment in company stock continued at historically low levels. Less than 7 percent of 401(k) assets were invested in company stock at year-end 2015, roughly the same share as in 2012, 2013, and 2014. This share has fallen by 66 percent since 1999 when company stock accounted for 19 percent of assets. Recently hired 401(k) participants contributed to this trend: they tend to be less likely to hold company stock. At year-end 2015, about one-quarter of recently hired 401(k) plan participants in plans offering company stock held company stock, compared with about 43 percent of all 401(k) participants.
401(k) participants were less likely to have loans outstanding at year-end 2015 than at year-end 2014. At year-end 2015, 18 percent of all 401(k) participants who were eligible for loans had loans outstanding against their 401(k) plan accounts, down from 20 percent at year-end 2014. Loans outstanding amounted to 12 percent of the remaining account balance, on average, at year-end 2015, up 1 percentage point from year-end 2014. Loan amounts also edged up a bit in 2015.
The year-end 2015 average 401(k) plan account balance in the database was 3.8 percent lower than the year before, reflecting in large part the changing composition of the sample rather than the experience of typical 401(k) participants in 2015. To understand changes in 401(k) participants’ average account balances, it is important to analyze a sample of consistent participants. For 401(k) participants present in both 2014 and 2015, the average account balance increased by 3.1 percent. 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 401(k) plan account balance tends to increase with participant age and tenure. For example, at year-end 2015, participants in their 40s with more than two to five years of tenure had an average 401(k) plan account balance of about $35,000, compared with an average 401(k) plan account balance of more than $280,000 among participants in their 60s with more than 30 years of tenure.

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Sarah Holden is senior 401(k) Plan As 401(k) Participants set Allocation Represent a Range , Account B of Ages alances, and Loan Figure 4 a a Average and median loan balances for 20 401(k) participants with 401(k) loans, 1998–2015 Percentage of account balances, 2015 Percentage of account balances, 2015 Burha o the f a uto ind m, ima v N id u am tic u nd a ber l. e Hnro Th of old Pl e lle m an imp n e2012) Par nt acin tt ico i201 pants . fA ac c 5. c oo mp Of unle t the te co ns mo ana or lily e d s a tha ition s onf 600 v pa re rie pp a dlre aw ns dit ne h surv s the s fo e p yr e are d rticip ,t ire 57. me a5 nt’ p nt se rc a w g e o e nt uld and h a re dtq ea uire n uto ure ma e w stima tic ith e the ting nro c ll urre p me roje nt nt cin te emp d 2015, bloy alae nc r.e s t P a Phr c a ac r re t t ount iie D w Va Re W c c ipa ipa C fa w angua t: sh ir w su e cb n n L U. tnd e .ic o oa a t t ingt b m s’ s w r S. la ci.or s r re ns 20 a d n ant tD on, c llo it e e , G 14 g e e h no .” la g b /i r s t c p or oup y . ta nfo/ D a Iiv t nv L e r ie P C ion e toa nd la m : e s: t , etr q n Size E st n a Va o e s t e uit A tm nt ta m o t_1 ngu sset A o he rp m y e g inc of loy c 7 nt e oun fu o , st _q1_ ta rL m -e 20 nd e r C d a a d e a p to r a b s 15 se ta t m B o llocation Distribution of 401(k) Participant A C b ing e d ny a r e e a p a , l................................ w ne fun la nt sa t T E o a a s it ny nc o e m fit t .c h te tal e xls oc r d ce p d s a o fo I Re s loy Pl k g ns unt nu re m ans r nd sea td e e Re it a r m eu b e y up non tr a t . a B ir st c e line For e e a h a ill ne P m n T – Ie b c d o tns h e fit r a it e tal e spe a n in lin r . xa ts Se v g in 201 tit Par Figure e e Re u m For c t t e - t ................................ tFigure p e e iiv d c sea xpo cle . u ia e pants w e 5 A rt, it e xa it .r 11 v su t 42 c y h r he a b h. m il r , A a e a 12 e no. p ld a A a b c t le m v nc v le o ee , a ini nt 2, a r te il a a a he a d t st g p c b e fun on r T rnd le st e a otal a v t o ta ion (Ma c ious d rc E c tibu s. k As B oun RI m ........................................................ s t e ion o ya t ts e I rs b a *k rsu c r e ah) s. ltf a a e ccount t. nc N hr B A g e re oug v ia iv e a Av r of e fly ila , n d e h co no. p b rone age a le olla rt m 28 ia -c Ac ttipa p rhir 3 (July c a a ount n d m ny tount ( s in t st o Bal ro ) . 8.5 m c anc k A he p v ro e od a ir ril ill a u 60s b icon) e le s a 45 at director of Retirement and Inv estor Research at the Inv Figure estment 18 Company Institute (ICI). Luis Alonso is director of Aon. 2016. 2016 Universe Benchmarks. Lincolnshire, IL: Figure Aon plc 46 . When analyzing the change in participant account balanc Figure Figure es ove 10 14 r time, it is important to have a consistent sample. InvesC tm ha enge nt ps in C erform onc anecnt e rlik ate ion ly Percentage s in expla Eins quit a ie g s Sinc ood of active 401( d ee ta he l o Fi f th naen k) flu cia plan participants c l tC uraisi tio sn in ................................ 401(k) and participant................................ s’ asset allocations ove ....... r tim 28 e. EBRI/ICI 401(k) Database Represents Ava Ac ilab tivi ilitt y a y i ndn U 20 se of1 45 01 (k) Plan Loans by Plan Size Non-Target- 1–10 Non-Target-Date Figure 22, Distribution of 401(k) Plans, P 37,299 articipants, a 183,472 nd Assets, by Inv$15,199,012,058 estment Options, 2015 ................................ $82,841 . 24 1 Tenure Composition of Selected Figure 401(k) 9 Plan Account Balance Categories Th c ao t mp e re la tire arre gm e dse t w nt inc ith bre y52. a as ls 4 eo sp cin eo rc ns aevint d e e ra in rig ng e 2014, are cc tir o New un e 39. me t 6b nt a p401(k) Participants Tend Not la einc rc nc e o e nt me o in c cfro urre 2008, m dS o aamo cnd ial ng 10. 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Re /pe ouse c w p e e 0) it t le ra s, a ns ir ov h la . eW ion/ E m e nd d ra rth e g uc sh tn ie r Lm er t e a oa ingt p sea Tr teio la th n .e ns n a on, rn a c d h n (nd s.” -a s 70 10 P % 0% lan Size by Num401(k) plan characteristics by number of participants: EBRI/ICI 401(k) ber of Participants $7,346 c a 36 o nd ns p Mo e orc lido eare nt tion 2011 in o 2014. f the and ir H multi oldep n lea a nd cc V oun anD tse . rhe Amo i 2005. ng pa rticip For aan $7,292 nts an ian lythe sis ir o20s f 50 the s op r o60 ssib s lw eith imp mo acre t o tfha auto n 30 ma ytic ea rinc s ore f t ae snu es re in , p the artici pants’ t in c 90 enur p om ee rc p w e ant a ns $19 y of sto pc a ,08 k rt , ic 8, co in ipa cluding nm ts i pa n r58 e the d p w ire it r 20 h $158 ces w nt w ithout ho ,182 he e for ld quit none py a rfun tic (ip Fi da s he gnt urs in t eld 34 e) q he . uit On irie 40 s t the s w hr ot oug ithe h mo h com r ha re nd tp ha , a8 ny n 20 ye p e sr toc cent ka , rb ha s of ala d n m tc ee or nu de rfun e th . a dn s, or 51–100 9,918 Percentage of Account Balance Invested in Balanced Funds 704,912 4% $48,369,878,150 $68,618 t 2016, hose s of eet he Inve 41.3% au stme thornt s, a Comp nd sh anould y Ins not titut b ee 2017. ascribe For Per d a tco entage of Ac dis the cus offic sion eo c rount Balanc s, t f tre $7,191 ru nd stse b ee s, or ot e Inv twees ent ed in Equity he der fine spo d ns be F or ne unds s of fit (DB) EBR a I, nd E B dRI efine -ERF, or d their 20s 28.3% 3%46.6% 7.5% 4.9% 1.3% 1.4% 4.7% $7,153 3.5% 1.8% 79.5% 20 acc 12 ount thr b oug alah 2014 nce. Thi , a s c nd ould mo d the era n b ted e in 201 mistak5e nl (Fi yg d ue rsc es 7, ribe8 d, a as a nd n ind 20). iA ca t ty ion th ear-ea nd t b20 ala15 nc, ee s a quit rey d fun eclin ds w ing, erbeut 4 3 a cp tu er aclle yn t of 401(k) 1% Loan Amounts Varied Across 401(k) Part $7,027 icipants Figure 48, 401(k) L percentage oan Activity of Vatheir account balance ried Across 401(k) Plan indicated in company Partic ipants ................................ stock, 1998–2015 ..................................... 46 All Plans Bloomberg Data. New York: Bloomberg L.P$6,946 . A mss ea esu m A N D W t c B C a ov or rtE : lloc e iv th k R Wor ing d U. ifor t e ex y b a S. -ty in 200 c b io e D ten a he k p y e C ing ond p erien om ls num a8.” ro P tm .a m a inf $6,856 spx it p b I c env te e e of ty lue nt er re ,e of of nc s no. Subcom tm p e La s inv a e p 14 r b nt ic o t i10 c ra C ipa , e m l 4 om 5 (June). st Eim nt tm t 0 p e p s in e 1 a e loy n (k n on ty e ) p r tI e he ens E C t u B m a a tp re r m it ns p la ti ne ut loy bn) c ra fit e ip idg e nd . Re s Se ra A -e n b E c sea , o m ts hc MA ut a p u in nge rlo rc90 : it h y 2 y N e s in a P 0 a A p ee t e 1 d ion rRe rm spe 5 c.e ini ss la a nt To l B c te st ions t tiv of s. For r ur unde a ete p $6,846 ion (N 15 H a la u o er ns , a s eno. t rx f E a ing w a ov nd m it c 2, a h e onom on pc m le m ha b nd , “or e nge E st rn ic e ) E oc r . B ton Re s i h A k 14% RI a v s (a n 401( sea n 1,000 a a Ind ilss a s m rb c ue B le h. e k e y B ) a a A ond p trp su v ie a a arfr rila t, : e tic ic no. d E b ipa ip nha le ba y nt 33 a nt tt n s he s’ 5 c ing $90, 101–250 000 $6,815 database in 2015 versus 2014 DOL Form 5500 for all 401(k) plans $6,839 7,863 $6,821 1,241,634 $80,931,056,172 $65,181 Asset A(Median llocationAge: 45 Years) s of Recently Hired Participants ................................ 2010 .............................................................. 31 c ao vntrib erage ution acco ra $6,717 un te t sb in alaanc uto e ma inctic reae snro ed 2. llme 0 p nt e rc pe lant ns w , s ith ee the VanD c oe ns rhe olii da an tion d Cop of e the land ir multi 2008, p le V a anD cco eun rhe ts i .2010, Future a nd joint Va re nD se erhe arch i aw nit dh 80 bot p h. erIc nde ente of d, t74 he ip r earc cc eo nt un of t b paala rtn iccipa es inv nts in Ze er so te the d in c ir 20 om s w pa itn hy out 1–20% 10% st oc eq kuit . y funds he >20% ld ta –80% rget-date funds— >80% which tend to be c st oa ntrib ffs. N ution eithe (DC) r EB p Rla I ns nor , s e Ee B R $6,644 PI o-te ERF lob rb$6,659 a, Veb nti, ies or and t a W kis es p e 200 osit 7; io H ns o ld on en, spe Bra cifi dy c, p aoli ndc H y a pdrle op yos 20 a06; ls. EB Bra RI dy inv and ite Bog s codm an m2010 ent on and this 21 30s 41.6% 12% 31.0% 5.3% 5.6% 11%2.2% 2.6% 5.7% 4.2% 1.7% 78.0% 12 w Fiould gure t24 e90 ll us not , % Averag hin e g A ss ab eout t All c oc onsi ation o stenf 401 tly pa(rk t) ic P ipa lan ting Acc w ou ornt kes, b r14% s. Sim y Pailra tic rlipa y, tnt he S aag la grry e g aa ntd e Ianv veerst ag m ee a nt cc Op ount tions ba ............... lance would 26 the assets in t 1–100 he EBRI/ICI 401(k) 45. da4% tabase, t21. he8% same as in 201 6.3% 4. Bala 10. nc 9% ed fund4. s, w 4%hich inv3. es 2% t in both e 0. q1% uities and 39 25%14% Bec ?a us 60 Ne % on o– f tth areg se et - cd ha atng e e bsa lin 401( anc the e k) d c Loan fu ros nds s Bal seinc cances tions lude , as ca oss mp a e Per ta ring acllo ent c a a age v tion, era ofg e 401( or a c hy c k) o b un Pl rid, an t bfun Account alanc ds in es Bal aacd ro ances ds itsion t diffe o re lif nt e st ye ya le r- fun endd c s. ros s - 251–500 Age Group 3,691 >0–50 percent 1,297,953 Figure 16 >50–90 percent $81,319,803,031 >90 percent $62,652 At year-end 2015, 59 23. p8% ercent of non–target-date balanced fund assets were assumed to be invested in equities (see The S& In incP lude t ( W w w r d 50 Oc o is w w or d 0 t tduc w w a tr k ob ibut v a .d .nb e ot e rloa e r ol.g a a Re rt e ion o ) l r gion r n p . e .or tov e A ir ta v e r u g /s f a c a ov m r/pa cil n ind it ount e a c is en b cs/ ion, p oun le te d Se e re b a s/ x) fa t ta c c w o l ur b w a ul im nc 14 a n w it tla c p /f y r w 1 e a n e ” il05 s, it .ic r a c e( e e sed s/ Fe d i.or s unde e w b is b r g 1.4 it sa ua im /pd h 30 /r r p ry p e s f/ or e se c 13 p r or p tc e a a e ) e e r n r. r1 nt c s t cA 5 he e t tv -o d n he 02 a rur ts a il of /s .p a n e ing b a ff td A p a le ly e fv t la c 20 ze is a er a tns nd s of tt 15 ic age aw s/ w sa , w w it ra w w e w m h 10 o gt hil w .e e ip r .e e le e b am nd rb b i.or of r e ond ri.or nt tfe ce gonsi -nur /pd w g s (a b/pd ull ere f/ s e s m t p f/ p te on a iublic ns nt b re r t a iie /2 a c p csu ip fs a c 01 arount a p tr tions nt ie d 0p cd f/ ipa s. e E b /t b ns B y n a e RI tionp la tst s. he _ nc im I For B B e la ony _1 s. I anbulle r4c 001 /t ln a -a20 1 y(33 s k t09 g ) in.pd C .p iv p a _No e a d pn a rfitt fa ic 33 l U g ipa e 5_ . n S. K t s - All 53.9% 4.9% 25.0% >5–10 Years 16.2% this Luca fe s a 2010. ture w For ill eaxp dlor isce us the sion lo o ng f the itud v ina aril eaty sp o ef ctfs a coto f rs thi ( se c .g o.ns , to alixe da stion , savin ing mo s, rmo e drtg eta ailg.e s, children) that affect replacement rates, highlyPlan A conc 101–500 essets ntrated in equity secu 45. rit8% ies for th21. at 7% age group6. — 7% as their only 10.0% equity in 4.1% vestment. 4. A2% nother 8 pe 0.r4% cent of Figure 37 r 2016; Yeesea ar-E r a cnd h. nd 40s 20 Bra 15 dy Sn , 48.1 Burha ap %shm, ot of a 20.5 nd 23. 40 2 % % H 1( old k)e n Pla 2012. 5.3 n Lo % an Ac 6.7 tiv% ity ................................ 2.9% 3.6% ............................................................. 6.5% 4.6% 1.7% 74.1% 35 Figure 49, 401(k) Loan Balances ................................................................ a .............................................................. b 47 fix tend ed-tinc o bom e p eull secu ed d rit ow ies, in n if a c rle aa rg sed e num slfight orb Par elr y tof iin sha cipant olde s rre W , pia a th r ctc Loans, ic ou ipa ntnt ing by s r for Par eti rt26 e icd ipant . pIe n a r c Age, e dnt dit Tenur of ion, the c e, h a ass nge ets in t s in the he d sa am tap ble ase of at year-end Brady, Pe501–1000 ter. 2010. “Measuring Re 22. tir 7% em 2,458 ent Resource 1,724,490 Adequacy.” Journa $113,626,446,289 l of Pension Economics and $65,890 Finance 9, no. 2 s Ass ectional et All s oc na a ptio sho nts s o cf Re an 20s le ca e 13% dntl toy Hire false d co 13% Pa ncrtic lusion ip14.8% a snt . For 13% s example, newly 10.0% formed plans would 75.2% tend to pull down the average Mitchell, Olivia S., and Stephen Utkus. 2012. “Target Date Funds in 401(k) Retirement Plans.” NBER Working Paper, no. Age Group Median 401(k) Plan Account Balance Among Longer-Tenured Investment Company Institute, Quarterly Supplementary Data). The allocation to equities in target-date funds varies with the g Ar goup grUp e, gd a sh p $80, t a 80 r e or te e % 501–1, B sent .p t000 e ond d r ft e in b 000 Inur nde ot ex) h 2014 te inc nds ret a o ased nd me 45. 20 a 0.5 n th 9% 15 p, a ett rhe ca e nt highe a21. v e (Fi r 8% ag rgu e p r e e ar s 7 ccceoun nt a6. nd a4% g t e b 8) a of la . nc pae rt ic inc 8.ip 9% ra ent ased s w ill b 3.y 9% h 3.1 p ave ae crcco eunt 4. nt 7% . $76,293 A ba s w lanitch p es of 1. re 3% vle ious ss than Percentage of plan assets Over the past three decades, 401(k) plans have become the most widespread private-sector employer-sponsored s Fi eg eur Bra e 25 dy , 2010. Avera For ge A an ss ae lyts A isll o oc f the ation o impf 401 act of (k c) ha Png lan esA in ccou Soc nt ias, b l Sey c urity Plan Size on re tir and eme In nt ve pst am tteerns nt ,Op seteions Gus ........................... tman and Steinmeie 27 r participants in their 20s without equity fun d Account s had e Si qze, uity or e Sal xpo asu ry,r Sel e only ected thYear roug sh non–target-date balanced funds, and 50 50s 1,001–2,500 % 43.9% 17.5% 5.7 1,906 % 8.5% 2,969, 3211 .9% 6.7 $211,861,220,666 % 7.0% 5.4% 1. $71,353 5% 65.3% 30s 18% 21.2% 11.3% 67.5% 23% recA or va d ? ila ke C b eo ili pm e ty rp s a a and n nd 21. yUse st 3% cha o c of nge k 40 is s i 1( en th qkuit ) P e yla set of in t n Loa he p n pla s b lans n’ys sponsor for Pla n Size which t (................................ the hey e k m ep eloy p re ec r)or . d s also ........................................................ can influence the change in aggregat e35 2015. Despit 20s e minor shifts, most 401(k71.1% ) participants appea2.2% red not to have ma 14.1% de dramatic shifts in 12.6% their asset 10 (April)1, : 23 001–5, 5–2 000 62. Many Recently Hired 401(k) Participants Hold 45.5% 19.9% 6.0% 7.9% 3.7% 6.3% $73,357 3.2% C a P c a om c r o t i un 17 p c ipa a t 91 r...ing . b n 20 20 20 1 (M atla 10 13 loa sn 14 nc . . a a . n e“ “ p r,P E The c a sh b r h) ff c iv ut t e ot . iv a c I C w ts of tim e ts of a o y m p P uld v a eb ne a c ns So rrttidg ie w e iof on c ld ly l ia e us A m l Se , hir P ut MA od la no e on B ce d m thing : u st r a 40 N ull ily tta ic y 1( te Participants, by Age and Salary, 2015 b ion a P t E y k b in, A olic nr )o p a ut p oll la l B ie la n size, b c m s on n p ur st oe ns e rnt a a ais c r u o B tt te in 40 i e rc of a ntl ne ipa f nE 20 g y fit c 1( nt ing 12% p on 11 k s’ C a) rt lom a fr a For ic P im s om la ip set a icin m a ng, Re s on tin 17 55 llo g sea 12% Re p 0 w c Fu e 0 A t a o rrir c tc rk tions e h. e u nnu e m nt rre A e s v .of nt Re a p a S l Re r, ila imi o p ta ir v a b nd ide e r lp le a tm or irl c s fur Sa e a y ipa t,nt ts v the w n (ing.” A Ve tw the s w c w a crg um si r.nb g it N on ins re h lo B ul eg E igh 1. r a a R Wor .or ta t1) ions e ns t g 12% . int a/pa v W out : e o ka r A p ing a r sh st e e g Si r a e c ingt s/ m e ndin P ant a w ul cp c on, 17 a o eg tun rion 9 ,in 11 t 2 1 $72,383 50s fu nd Thsis ’ ta syrs gte etm da ote f c sl.a For ssific ta artion get-d do ae te s fu nond t cso , ns inv ideesr to th rse w nu ere mb aesrs 31% ume of dis dt to inc 24% b t e inv in ea stme fund nt w oho ptions se t ap rg reest ed nt ae te d w toa s a n ge iv ae re ns p t ato rt ic the ipa irnt , $1 40 0,00 10. Fo ( Ek BRI )r Pl / e IC xa I m upd a pn le a, As te 88 s, p ae na s rcle e ysi ntt s of Al of p aa loc sa rtic m ipa plea nt of s in tion con the sis ir,t Acc e 20 nts w 40it 1h two (o k) u pla n or n p t fe B aw rtie ca ripa yl ena atrs is n s of c etxpe e enur s ct, e e d ha a to n d b ad e c c Lo p oun ublish t ba a eld n a nc la tees of r Befo10 re 0 2005, the U.S. Department of Labor private pension plan bulletins reported a count of active 401(k) plan participants 2008 retirem and en 2,501–5,000 2013. t plan in Fort he a d is Unit cuse sd io n Sto af te the s. vIa 818 n 2015 riety o, f 26% m an e easst ur 2,883,401 im esa t tha edt 54 ca n mbill eion Am us$211,488,103,027 ed to e re ic va an w luate or A kme ers w rica ens re’ a re ctire $73,347 tivem 40 ent 1(rk e)a d pine lan ss, see Fi anot gurhe e r 50 3, p 40 er1( ceknt ) Lhe o 33ald n A 40s com mop unt any s V staoc rie kd a A s ctrhe os 22.7% ir s 401 only( k e)q P uit ar yt iinv cipa est ntm s 10.7% e ................................ nt. Five percent ha 66.6% d e ................................ quity exposure throug ......... h som 48 e Suggested 30s citation: Ja 1996 ck VanD 2000 erhei, 2002 57.4% Sarah Holde 2005 n, 2007 Luis 4.1% Alons 2008o, a 2009 nd SharSt e of e v Par 2010 en B t21.5% icipant's as2011 s. “ Acc4 ount 01( 2012 k) Plan As 17.1% 2013set A 2014 llocation, 2015 60s 70% >5, 00037.7% 16.9% 41.1% 5.9% 19.10.1 0% % 5.5. 7% 2% 9.8 7.% 4%30s 3. 69% .2% 6.1% 6.8% 1.6% 10. 55.2 0% % a av lloc era ag tio e ns ac c in 201 20 ount % b 5. ala nce. Thus, to ascertain what is happening to 401(k) participants’ account balances, a set of High Concentrations in Balanced Funds Tenure b inv ala 40 enc st 1( m ek e w )nt o Puld la an Lo llo te cnd aa tion n Ac to s. B bteiv p a itull la y n e Vc d ae rd d ie o fun s w wn d it if s, w h P a la ahic rg rtie c h inc ipa numb nlude t A er g o elif f , e p Te st articip nur yleParticipant Age Group e aa , nd nt Ac stc a rount e rg tire et d -B d .a altaen c fun e, d as, nd ha Sa vla e rinc y ................................ reased in popularity .. 35 Defini 40 1( no. D St k ) C udy B t .: p io 19 20 la U.ns n 07 S. 10 a of 401( 1 (M sed w . D“ it e40 h 26 to 100 p on a a1( ryt)m k P . k) )la e C P nt n D a la P m n la of b eA rn si or L idg ss g aAc n M b 1,00 eeo t, c rA , MA ou od lloc 1 t Em ifi : nt o a p c Nta loy 2,5 a ion, Ba ttions ion e 00 lanc eA a B c p of l B c e aount ne e rur Lt a i c fit e ripa g a s Se B u o e a n Plta la f E s t cnc u n S c o re it os, 23 y p nom onsor A a p d nd e m icr c ini L Re s.” e oa nt st sea n A E r a of Btr RI ion (Se c c p th. iv aIrss itA tiy c ue v 11% ipa a in 2 pila tB e nr b m 00 tie le s in 401 b f9.” , e ar n t) o. . I 11% nv A34 v (e k as 1 (A ) ila t m pb la e le pn nr s w ta il ) tC . om it Ah 10 o va pil aa ny ble r fa etw er 2 Balance Held in Company Stock b 65th ut ra bth irte $70, hd r 5,001–10,000 the ay 000 . ty Th pe e s e q ouity f op tions porti opn re w sa es nt e esdtima 457 . Pre te lim d ina usin ry g re th 3,149,425 seeFigure 32 a in rd ch usa try na ly av ze inra g g1. $239,898,519,944 e 4 eq mil uity lio n pe prc artici enta pg ae nts fo r drthe aw n a $76,172 sfro sigm nethe d ta 2000 rget- date le Fig ss ur te ha 26 40 n $10,0 this % , A y se sa et A 0 r.0 in lloc 20 ati 50s 15 on D , com istr pia buti red on o with 55 f 401 22.4% (p ke )r P ce arti nt cof ipa pnt A articcipa count 10.1% nts in Batlhe anc ir e to 20s w Equi ith b ty 67.5% Funds etween fiv , by P e a arti nd ci10 pant ye A arge s of ...... 27 that Aha ll d been adjusted fro 16% m the 14% number16% of activ 13% e partici 12% pants a16% ctually r 15% eported 14% in the For 14%m 5500 13%filing 12% s to exc 11% lude: (1) 12% participantA s. 40s ll By year-end 2015, 40 43.1( 1% k) 48.8% plan a 19. ss $65,454 8% ets had gr5. ow 5.0% 7% n to $4.4 t 8.1% rillion, 27.3% re 3. p9% resenting 6. 19 1% pe 18.9% rcent of 6.5% all retirement Brady ? , Burha Mo nm, ey f an ud n H do sld ce onsi n 20 st12. of For those simula fund tion s d e re si sg ulne ts d s ho to w m ing aint the ain a contrib stab ution le sh sa o re f epm rip ce lo. y er-sponsored retirement plans Ac combt inivi ation o ty f t i an rge 20 t-date1 funds, 5 non–target-date balanced funds, or company stock. As a result, many participants A c c ount . A 20 Bla l 16 lan . cH e 43.1 ow s, a % A nd mL eoa ric 19.8 n Ac a Supp %tivior tyt s Re in 201 5.7% tir5 e.” m e Ent 8.1 BRI : % C Iha ssu llee 3 nging .B 9% rief , the no. C426 6.1 onv % , ea nt nd ion Ia Cl Wi I 6Re .5% sdom on search 5.3 P% e W rspe ho 1. c B6% te iv ne e, fit Vol. 2 s66.4 . W% a 3sh , no. ingt6 on, Figure 38 $63,929 c Mor onsi nin ste gnt sta p r. ar 20 tic15 ipa . n Mor ts m nin us gts b ta er a Lna ifely tim zee d . AFu lloc tu arte io r n I esea nde rcxh e s w — illU. eS. xa m Inv ine est lin orkse ( dJune data ). tC o hic ana ag lyo: zeMor then c ingst onsis atre , n Itnc sa . m Avpale ila of ble Salary Range Percentage of recently hired participants holding 20s c 30s 40s 50s 60s > 10,000 378 11,091,709 $848,198,372,615 >30 Years $76,471 p am arong tiw w I w cns ipa w w w t40 w w w it nt .nb .e .d u1s ( t( b ol.g ek r e Fi ) i.or Re r .or p g ov sea a ur gr g /s /pd te /pa ic it r45 c ip ef/ h P s/ p a ) 60s b e nt . d rre L e ie s/ s. R ro fa spe fs w aul p n r 19 e d tcc /f f/ t0 a e iil v t E 71 nt e ios e Bs/ ly RI 16 — e hi _ b , tIsa he rno. B e_0 /r d a e p m 4 3, a se a - 22.3% oun 20 ra tind rc10 cipa the _No E of n r BstRI t/s s in he 34 tI a ss 1_ ltoa 20 is ue A tn o 15 ic ut s/ Bo ut r tr-ie e e E s nde tf 9.2% nr ti, a re no. l.p nding m d d e to f35 nt b -0 (No de biv ull m ide e or tv d ie e ns m b lik /2 yb e t e 01 he ly 68.5% r) 1p . t o rA e ev hold m ns aa ilionp ini a bb ng le ala la anbulle a n tc cceodunt fun tin.pd bdas la f n ce— A Av ge erG 3arg 60 oup e% Loan Balances ................................................................................................................................ >50-90% .... 35 80 Pla50s ns Without Company Stoc Asset Allocation Distribution of 401(k) Participant k, GICs 47.1% /Stable-Value Funds 6.1% 30.4% 16.3% fu EB Fig nd R ur I/ c e ICI a 51 lcula 401( , Lte oa d kn )us s Fr da in ta g ob m th as e40 e Mo s1 ug (rning kg )e P sla ts sta ns tha r L Te t if 16. th e nde 7% ce y csd le he tAl o erloc B nu ea mb Sm tion e arll Ind o................................ f e inv xee s s(tme seent Mo orning ptions sta prre ........................................................ 2015) sente.d For doethe s no atv e influe ragenc 401( e pk a) rticip plan an ats ss.e 47 t A tes a nur c er os (Fis se gurc et io 14 n, ). or Old sn ea r p w sh orot ke , rof s dtis he p le ay nt a ir e si p mop ilaula r ptaio ttn o ern. f 401 For (e kxa ) pm lap n p le, a59 rti cp ipa erc ne ts, t nt of hep d aa rt tiacb ipa ase ntin s in t clude hes 401 ir 60s w (k) ith individuals e ligible to participate in a 401(k) plan who had not elected $60,329 to have their employers make contributions; and (2) 22 a and sse S ts. ocia l Security to income in retirement, see Brady 2016. For aa,b n analysis of income near Social Security cla iming, see with no equity funds had exposure to equity-related investments through company stock, balanced funds, or both As (Augus se t Source: tA 201 lloc 7 Tabulations a ).t ion a frn om d 26% EP Ba RI/ rICI ticipa Participant nt -Direct Age ed 15. 9% Retirement Plan Data Collection Project. >2–5 Years Tab Dula CA : ltI lion nve s so tm f th ent e SC urve omp y aony f Con Inst sume itut 101,625 e r . Fi Ana vanc ilaebsle r eavte 26,136,446 w al w tha w.ic t ai.bor out g/pd half f/$1,917,284,271,397 ropf ttr _1 a6_ ditia om na elr ic IRaA _ su assp ep tsor in ts_ 2013 r$73,357 etirreem sult ent ed .p fro df m at corporate.morningstar.cMany Recently Hired 401(k) Participants Hold om/us/dobalanced fund assets, cume nts/Indexes/AssetAselected years llocationsSummary.pdf partic 20s ipant1–100 s in $20,000–$40,000 the EBRI All /30% ICI data 30% c 45. olle 4% $6,764 c28% tion eff 19.7% 23. or 24% 2% t. $19,797 25% 5.8% 29% 10.5% $52,783 26% 12.4% 24% 5.0% 26% $78,077 69.8% 25% 26% $60,585 26% 25% 30% 60s 50.9% 7.0% 28.8% 13 13.3% c Fiom gur pe a r2 e7, As d witset A h recllo ent ca hi tion D res in th istribu e p tion o ast. A f 401 bout( k tw ) o P-atrhi tircd ipa s of nt rA ec cc eoun ntlyt hi Br ae la d >20–30 n 40 ce 1t(o Yk ears ) E q puit lan y p Fu arnds, ticipabnt y s f Parrom ticipa 20n11 t A tg her, ough vary w only ?w w T h .ic se a light i.or vg lera y/pd wg he f/ e pn p e 4r0 16 a 1r(k - ti03 c) p ipa .pd nt lan f s a Account Balance to Balanced Funds, by Age a a nd rc ec w g ow ru oup w n.e t ba ebdr i.or b lan ased gc /pd e ten on f/btrd he ie sfs to si pze d in f/ of E cB rtRI ea he _ s ir Ie w B40 _01( it 11 h k- ) par 2 p 01 la0_ n tis (a cN ip os a 35 n m 0_ t a ea 40 g su e a 1k re_Up d n d b ten y d a the teu - 09 num re. .p For d bfe r of 0.1915319 a $60,000 19.15319 On alloc aa vtion eragto e, e pq auiti rticip esa (nts thro ha ug vh e e 10. quity 4 d is fu tinc nds t ,o cpotions mpa ny but, sto ocn k,a v ae nd ra g the e, c eho quity ose poonly rtion >9 2. 0% 5 of (H ba olld anc en ea dnd fu nd Vas nD ) b eyrhe pai rticip 2001b ant ). a In ge, see t Re wo feor r ? e nc fe R Stable oe w ws e percent ................................................................ r ye -a v ages ra s of lu may e prod t e nonur t add eu t oha c 1ts 00 d , percent a su cccount h a because s b ga u loa a f n r roa c unding. e ns of tee Pd le ercent ................................ in s25% s t v ages ha esn $ tmen are 10 dollar-weight ,000 t co. nItra ed n con averages. c ......................................................... tst (GIC rast, le s) ss ta ha nn o d ot ne h-er sixs th o table f th -o vse alu in e 499 p no anve rticipa ste Sont d u rcfo s w e: T rme ho aburla a e tio rm n e s p fy rloy ooung m E ee BR s I$55,502 /I a w Cnd Iho Pa rtic tha hose ipd an n t-D o w ire t ho c(te a d t a R the r ee tire ne tim me w nt P e t lth a o n D e t he aF tao C ir rm oj lle ob c5500 tio s, a n Pr o s w fili jecng t.ell a s ws old ere seurb p mit art tiecd ipa ) inc nturre s and d the tho se brew akho -inha -sev rv ei c bee en EBRI Employee Benefit Research Institute Issue Brief (ISSN 08820s 7 -137X) is published by the Employee aBenefit Research Institute, 1100 Bra By Jac dy30s et k Va 50 al. % 2017. nD erhei, 22% EBRI; 20% Sara22% h Hold 19% en, IC 19% I; Lu25% is Alons 22%o, E20% BRI; a 21% nd Ste 20% ven Ba 19%ss, I 18% CI 19% (Figure 29) 101–500 . 46.6% 23.7% 6.8% 2011 11.3% 5.1% Tenure (years) 14.6% rollovers from 15>$40,000–$60,000 % employer-sponsored retire $15,225 ment plans. $33,715 $74,541 a,b $109,075 38% $95,357 H old e n, .. Sa 20 20r15 14 ah, a . . “P W Perhy tiv ea r D tB eoe r a Pd e s Re y ns , ion P atnd irem Mic High Concentrations in Target-Date Funds laen B nhta Re ull el Ha e atd in, A ine dless y b. st V 20 raar0 c y6. “ t: of Re 40 20 su 1( 09 lts f k )For rPom lam ns E 55 : BA RI 0 0 A 25 ’s 201 -nnu Yea 4 Re a r l Re Rettir p ro e or spe m ts e nt c (tVe iv Se e rsi .” con u Irn itv 1. ye 1) P strm . oje W ent catsh ion Cingt omp on, any As in pr 60 evious years, the database for year-end 2015 shows that participants’ asse4t allocation varied considerably with b 14 2015 EBRI/IC 27 I 20 pla15 n p 0.1548561 he aN re ld t ot Te ic xa e:ip b T nur m a ha e la p nt m le e n edi s) , c , e or an . a 15.485605 d tA accou Sa m y fun eong la a nd rr t -s, c y be al ................................ t nd an hom cose e 20 atp y 15 a ear in p re , -en d p la d a w ns 2015 rtiti c h le w ipa wit as Percentage of Account Balance Invested in Balanced Funds h 100 o ss nt $16, s in t732. ha ................................ n h the r fe airlf i w 40s e n 2006 r p wi artth mor ic , ipa and ne tone s, t ................................................................ tha he -n two thi loa rd n r in 200 to atfiv ioe 2 (F w yaes 14 a igur rs of ep e 35 trec) nur e . nt Ae tof y ha eta d he r -a en rnd ea m v20 a ei.... rnin 15 ag 29 g , e 13th A S ta t.rg N et W -da , S te ufiu te nd87 typ 8ic , ally Wa reba shing lanc ton es , iD tsC p,o 2 rt0 fo 00 lio 5Percentage of participants, - to 40 bec 51o , m ate $ les 30 s0 f o pc er us y ed ear on o gro r is w tin h c and ludm ed o 2015 re a >10–20 sf opa cus rt ed Y oears f oan m inc eo m m be eas rsh iti p appro subs ac che ripsti o and n. P pas res ses or tted he In an ongoing collaborative effort, the Employee Benefit Re 28% search Institute (EBRI) and the Investment Company Fi ad gd ure ition, 40s 21. fu the nd p sre , li m ar ina e rry ep a 16% or na te lyds is a s one 15% found ctha a 16% tet g401( ory13% . k ) partic 13% ip ants 18% are not 16% na ive—15% that is, 16% when giv 15% en n o13% ptions, the 13%y do 13% not t w he ith th ir 60 es w ir c 501–1, iur th mor rent 000 e em th pa loy n 20 ers for yea rm s of 48. any 3% t eynur eare s. ha 22. These d 6% acc a onnu unt a b 7. l up a1% lan dcaets of es of 10. letss he 2% t h da an $10,0 tab5. a0% se p 0r0. ovide snapshots of 401(k) plan C p Be ro a riod p dy yr , e ig Pse ta htt In e b 0–2 rli, sh St form ee dv b ey n B a the ti Age Group a os ir n s, Je :p lThi an ss s r (s icee a ep H U.S or olla t .is 67.3% De nd, c >0–50 percent op p a ay rtme nd right Knt ee v d o in P f bLya ie b tr he o c 2.3% r, e . E Emp >50–90 percent “ m Using plo loy ye eP e e a B B ne e ene ne l Ta fit fits 17.3% x D Re Sea sea cturity a>90 percent r tc o h I Ad Exa ns minis m tit ine utra te t 13.1% tion he (EB Tr RI 2012a a)ns and it ion to fobr yfu the rthe r Endnotes ................................................................ 11.9% .......................................................................................... 555 P Ala lthoug n Sp 34 onsor h the a Cv ou ernc agil of e acA coun mertic b aa . la 20 nc 16 e . for 59 t the h An ent nua irel Su dat ra vb ey a se of a Ptr ofit yea rSha -end ring 20a 15 nd is40 low 1(e k) r P tha lans n t : he Re a flec verta ing ge 20 ac1 count 5 Pla n *20 Asset % s >$60,000–$80,000 do not add to the total because of rou $29,126 nding. $57,952 $119,778 $174,458 $149,997 Holds Mod D Iens ta n, Cn t: ar tdit Sa e ge ar U. u l® d t tr S. d e a p a.” os h, tRe e D o Jour te ag Ja f sea p th e a c ek r rna fat rt un c m Va e h P d l o ,e p w nD nt af Re hi ie d c re h of ispe n r ist h D iu L r e s ua c e u i, lle tb m aillv L s o ye , e uis r inc V nt , 12 A. lE u A d 1, no. m P , elons OS d p no. in loy T th M o, e e 2 (No 4 (A A fe un a S nd T d B’E s e p R v n ne rSt a :il) e m Se m fit e : ev .b n 9 s Se e d e 5 n B r a – ) dd 11 . ca A ru es ss 7. r vit a s. y icla 20 hA a bd ng 11 le m es . a ini “ tt 40 ost w : EBR rw 1( aw tk ion (Ja I.ic ) I s Pi.or sla ue Brie n A g nua /pd ss f,re f/ 1 yt1 ) p 00 . A eA lloc r 13 1 v2 a ta h - il02 ta S ion, b t..p le Nd W a A f,t c Scuoun ite 87 t 8 B , alances, 5 1998 a ge. 0.0773281 Young 40% er pa7.7328061 rticipants tended to Percentage of recently hired 401(k) participants favor equity funds and balanced funds, while older participants were 10.2% more likely 60 31 pe 50s rcent1001–5, of rec000 ently hi12% red 401( 11% k 49. ) p 6% ar12% ticipant 22. 10% s he 0%ld t10% arge7. t-5% d13% ate fun12% ds, w 8.9%hil 11% e 115. p 2% e 11% rcent he 11% ld non 10% –target9% -date ba 9% lanced assets in 201 40 $50, 1( 000 k5, w ) plahil n a e cin p count lan s w bala itn h mor ce of ec lose than 5,00 to $35 0 p ,000 art, iccipa om npta s t rehe d w loa ith a n rn a atio ve w ra as 11 ge 40 p1( erkc)e nt pla (n a Figcur count e 46 )b . alance of Asset Alloc >2–5 ation to Equ 20s ities Percentage of Account Balance Invested in Balanced Funds 63.6% 11.6% 3.5% 10.2% >5–10 20.0% Years 78.2% 13.0% d 23 Ins iv Th itdit e eu the t te end ( ir Ie C anc Is)sy e tco solle f athe mo ct ng a acnnu c a oll un a nl t . d b Ind a atla a enc e on de,- m to les ill -s sions atha lary n of ra 1 tio 40 pe 1( rc toe k nt p ) epa ola k f n p p aa t rtici hi ar40s gthe ic pa ip rnts a snt a la fo s a ry llo s le wa v e e d m l sae a a 1/ nd nn s t th ao se se n exa t fal am ll loc o ine ff a tion lihow k 9.1% ely s tra r the efle tese g cy ts .p P a the r la tin cipants c $45,519 I anv cce ount W sta m s h e b int na gla to C n nom ,c D eC s, a p,a 2ny 0s0set a 05 In -4 st 0llo i5t1 uc . tC a et op ion, (I yC righ I)a. tnd 2 I0 t 17 m loa a by E n a y b mp c et ilus o vye itey e d a B w c er n it o ehout fs it s w Re se ide pe arr ch m cr I is oss nsi ston i tu sec teb . tut Aions ll rc ig it h a of ts tion o rp es aerrtvif th e cd ipa . No en sour .t 436 s. .c e is required. de At tail Re y ).e ta Th N ir roe -tis e m al nd l c e part ha nt 2015, ing .” cipan e SO t in s2. I a rme 0 W e op or ftho e ferc k red ing d etnt o his log P o ina f v yp es the re e tr ms ent ( ults pA a p o rtici pt rin il) iop n. . aa W Sd nts er e aa F sh ma iin gu ingt rth tic e 11. 2e 2 on, 2% inc . dare ta Da b C sa : es Ie in nt w the eerrna e nu mi l Re m ss b v ing e ernue oaf b ind Se irtiv h rv id d ic a ue te a. ls A e rv ntry eapila o,rt b w e le d e re a ats y a oc un tivgee rp a tha rtici n p 20, ants o r Experienc >$80,000–$100,000 e. Chicago: Plan Sponsor $50,348 Council of A$89,604 merica. $179,981 b, c $255,631 $222,328 balance at year-end 20 Age Group 14, this is entirely >0–50 percent the result of particip>50–90 percent ants and plans entering >90 percent and leaving the database. Among 40 40 Figur60s e 28, >5, P e000 rcentage of 10% 401( 7.3% k) 9% P48. lan P 0%10% articipa 23. n 8% t 2% s Withou 8% t 6. E8% q11% uity Fund 10% 10. B 0% alanc 9%es 5. W 3% ho 9%Have9% Equity 8% Exposu 8% re, by 8% w a0.2011285 nd wwL.d oa ol.g n Aov ct/s iv 20.112849 iit ty e s/ in 201 defaul 0.” t/f I ilC eIs/ Re ebsea sa holding the type of fund indicated, /r re ch P seae rc rspe hers c/s tivte a t17 ist, icno. s/re10 tire , m and entE - 2015 b Bull RIe Itss ins ue /2 00 Brie 9p f,e no. nsionp 366 (D lanbulle ecem tin.pd ber)f. to invest in fi >5–10 xed-income securities such 54.7% as bond funds, GIC 5.1% s and other stable24.9% -value funds, or mone 15.3% y funds (Figure 21). Age 30s 16.8% 10.4% 72.7% I fun n a For d s, a g ?y iv ee m Ot nd an a ror -h e1 e er g nd e p th e is 2014 g a rr c n toup e he nt $ 28 d , rhe a elong 0, ta sild 00 ,d ua sb e e 0ot re l fo a th ta H m eo nur rong ld ot re g e h n e e p tte e r- a t nds d r inv a tail. t ce e ipa 201 t st o and m nt m 6e s in a ent non .a n s, su tt– he ha tair c tr h a ga 60s e highe ts r -d w a etia teh mor r l b e pa st ela racnc te e e nt e tfun h d aa g fun n 30 ye d es. of d s (F paa rigu tric s of ir pea nt t36 es w nu ). rill e. have account balances 10.1% m Am an ong age indiv their idu 40 a1 l 401( (k) pk la)n a pla cn p count arts. This icipant s, t rephe or ta is lloc an up ation o dat f a e c of count EBRI b ’sa la and nce Is t CI’o s ong equit oiie ng s (eq resea uitr yc h in fund to s, c 40 o1 m (k p)a n py la st n ock, influe Sponsnc or 10 eCou o %f tw nco il o co f mp Ame eting rica fo 20 rc 16 esind . Fiic rsa t, te esm th pa iri t cin al 2015, researc the h s a ug ve gre as gts e nu tha mb t hig er he >2–5 of r inv e Ya ears e rne stm rse te ntnd fu nd to c oo pntrib tionsute av ailable for d 30% 5.1% A T A Fi Ggure L A2 N C E 0–2 Years in 401( ww k G w ) IC p .ir s la A s.go are llnsgu ; v in aran /pub 2004, teed /iinv r 20s sthe es -soi/ tm n en umb 17 t co rp ne t47. t rac r rao t8% ns sf .$39,885 a itcionr tivee p 84.9% t 22. a irrticip e 9% men ant t.p sd in f c 6. re 9% ased to 7.3% 53. 10.1 3% million ( 5. ne 2% w me 7.8% thod) from 44.4 million (old were Tenure olde(y r ears) tha >$100,000 n 69. They were not inc$40,378 luded in this ana $141,511 lysis. 9.3% $305,302 $420,852 $376,091 Va H the old nD sa ee n, m rhe p Sa le i, r a of Ja h, cpkD a , ra a tnie ind cipa l Sc Cn ra th s w ig raC sho s, a opw end la er nd. eMic p 20 rh esent a 08 el B . “in t og The dhe aIn. m dp 20 aa ta c 17 b t a of . se “A Pin b m PA e ron ot ica h 2014 n Vie Retire w m a s on nd ent 20 D Sa e 15 v fin ing , e td h s for eC a ont v 40 erribu a 1g (e k t) ion P a P ca cr oun tla icn S ipa t ba n av tls.” ing, ancE eB RI >10–20 10% 42.3% 3.9% 6.8% 32.1% 18.8% 9.4% 8.9% 40s 18.4% 10.3% 30s 9.2% 71.2% In thA e 0.3751555 v 20 aila P a y be rle ta ic ra ipa s t t w ha nw t37.51555 tA w tg he .ic e i.or or da tg Te a/pd bnur asf/ ee p , ha e2 r17 s b 01-5 e 10 ................................................................ en tr .pdfa c ak nd ing wloa ww n .eabcrti.or ivity g /pd amf/ ong brie 40 fsp 1d (k f/ )E p Bla RI n p _ ................................ IB ar _1 tic2ip -20 ant 11 s, t _No he36 re 6_ ha40 s b ............... 1e (e k) n lit - tle 29 Group Zero 1–10% $37,323 >10–20% >20–30% 6 >30–40% 3.1% >40–50% >50–60% >60–70% >70–80% >80–90% >90–100% For example, among pa c40% rticipants in their 20s, the average allocation to equity and balanced funds was more than e $40,000 2.5% g Hrow eat ee vre trha , the n $1 Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. cr00 oss ,00 -sec 0. For tion ae l xa ana mlp yle si, s is 20 no petPercentage of Account Balance Invested in Balanced Funds r c w ee nt ll sui of p tead r ttic oi p aa dnt drs in t essing heir the 60 2.1% q s w uest ith fiv ion o ef tto he 10 im yp ea ac rs of t of p te anur rtice ip ha ation in d account a Rnd ept ohe rt a Ee Pl quit q v an uit a ies il s y ia W nc bil p lude ith or it GI t equit io y C : n o s yThi 30s / fS un f b ts r ds abl a , cle ea o-p nc V mor a pa le ue t ny d is sFunds fun toacv kd a , and s) ila b v the le a86.0% r eq ie on uit s w yt phe oide rt ioIly nt n o e a f balan rrne ound t c ed at f t unds w he 7.6% w .a wv.e erbarg i.or e of g a 66 nd 1.8% pa etr c w 6.4% ew nt 8.4w %for .ici.or all p g articipants in the hig p p Figur a articip rhe tic 0–2 ripa p ae e nt nt rc ss’ c eo nt a ntrib a cg tie vution s it y o f th ssa r oug lw a 27% ry as;h 1 Distr the y 9 ea re a 24% mo rfo -e ing bu re nd , mo tion o 20 27% ne re 15 w of .tha o uld The 23% n 40 600 ex 1(k) rp e e p pc 21% or lt a ns Plan tthe is 18% s d urve ra iv 25% s, Par tio ide yo ed f d .a int 8. 22% c De t 1% cicip o oloitt un four t ants, eb 19% a Con sect lanc sion ulti a e n 21% to s: t n d gs A a he Lla L ssets P ry 1.6% fir 22% , Int to st e ri drna s e 16 e sc 17% w tional ribe ith s t s a Fou 16% la he ry nd E . B H aRI tion o 19% w /I eC v oe If r, P oterba, James, S 401(k) teve P n F. lan A Vsset enti, sand David A. Wise. 2007. “ 20s Ris7. e9% of 401(k0–2 ) PY la ears ns, Lifetime Ea17% rnings, and Wealth at 20 >20–30 35.9% 8.5% 8.0% 36.1% 19.4% me 41 thod; see a U.S. Department of Labor, Employee Benefits Security Administration 2015d). As the 15 U.S. Department of Labor 20 I ss 16 .ue 2015b .” B I rC ieIf . , Re P no. rsea iva 31 tre c8 (June). 50s h Re Penspion ort. P AW la va n B aila shb ull ingt lee taon, in, A t 18.2% ww D bC w st : .e rIan bcr v ti.or eof stg m 20 /pd e12 ntf/ C For bom rie 9.9% m fs p a p 55 n dy f/ 0 0 A e Ins brnnu i_i titut b_ a e06- l Re (Fe 20 p b 71.8% or r 0u87 ta sr .p ( yVe )d . fr A si von aila1. ble 2) . atW ashington, increased byAccount balances are participant account balances held in 401(k) plans at the participants’ current employers and are net of pl 3.1 percent between year-end 2014 and year-end 2015, from $83,175 to $8 an loans. Retirement savings 5,729. A 20s m Song e e ? H t U oho 20 28.1% ld n % e k se n ne o w t w ho an l. 1.8% , he 2008; wld hic bh is t a Hla old nc 1.6% he ee n, d fin V fun aa nD ld c s, r e a 1.6% rhe teegc i, or ea nt y n, ld yc Alon ons hir 1.3% eis s do t s of p 200 artic a 9; s ip 1.4% sets H ao nt ld s in 2 teha n, tV c 01 a 2.0% ould nD 5 w erhe not ere i, b a m 1.3% e nd or 7.ide 4% e Alo nt lik ns ifi eo ly e d 2010; 1.3% t.o hold and a high H 1.1% olden et a58.4% l. 2011, variaUp tion. datFr e.p om df 19 96 through 39 2008, on average, less than one-fifth of 401(k) participants with access to loans had 80 perc Ne o 0% nt te:1–100 “of Fund ass s” e in t cs, lude c om mutup aa l fr ue nds d ,w bank 46. ith a 2% colle bout ctive t60 rus 17. tsp 4% , e lifr ec ins ent uranc of e a s 8. epa ss 0% e rat ts a e acm coong unt 6. s,3% and paany rtic pip ooa 2. lent d 2% is in nvestm the entir pr 13. o 60 duc 8% s. t prim arily inv6% ested in the 24 >2–5 40s 24% 25% 25% 84.1% 21% 22% 26% 8.9% 23% 20% 21% 7.0% 21% 19% 18% 19% balances in excAge Group ess of P $1 er0c0,0 enta 00 ge in 201 of pl>0–50 percent 5 (F ans,igu parrt eic 15 ip)an . H ts ow , ae nvde ras , >50–90 percent 46 se ts pe by rce n nt u m of bp er a rof tic pl ipa an nt pa s in t >90 percent rtiche ipan ir 60 ts, s w 20it 1h b 5 60setween 401(k) plans >30 held in plans at previous employers or rolled over into IRAs are not included. over time. Cross sections c 38.4% hange in composit10.1% ion over time becaus 35.5% e the selection of d 16.0% ata providers and 20 B 40 ra 15 1( dk y d , ) a P dte a attb e aa rb, se aa se; nd (Fi tg Mic he ur e h seco a21 el B )nd . og p For dra en. sent ty-20 eight s a 10 . sn p “e A ar p c Lsh e ook nt ot of a of t pP p ara riv t rita c ic tipa e ipa -Se nt ns ha tc ta or cc dRe oun mtor it r ee bm atla e ha nt nc n 80 P es a lan I p t e y nre c ca om ernt -e e nd of Aftt20 he er15 irE R a ; c ItSA c he ount .” t hi I n rb d va ela looks st nm ce e s nt at ta Emp x At cloy Re o y ?d e e e tair T e rc e -h o e B m e bu ntrib nd ee ne nt 2015, fit ution .” lk P of 4 N la B ns 10. E limit R Wo ,0 60s 3 a1 n s p(k d e a r rc n t) k he d e ing a nt no s Inte so P nd ets f aTrna the is phe e c w rimi E r t, p ion ere no. a mrtici na pl al o tion in 13 Sy 17.6% poev a09 e cnts es B ie rule 1 (Ma ty ted ein ne s o,f th f in iw Ce ty R ehic ) st r . de tifi a C h sta o ea e a ac m b d rim k ca b h Emp s sr I to e .idg ns On 8.9% w e loy te e ns itre , a ut e ure MA v eemis e ( Be r : a E tha s g N B n ing e e a R t , fit tIe ion )a a mp w tS d p y aa a loy e e l B stc a eia fre ur ounde - o l73.5% e e is f e snd ts hire aou o f 2015 d 20 a e llif Ec n 19 1 ntr inc 2014 5, 66 re y onomi o 78. p me ao nd Form rts I p ra etw s c rtha m ng c eRe e r5500 e nt e it s sea ss t no h iof aon i e tt t r c a 40 inc ah. in vse t 1 lud rthe (o akg e )e d 1% no Figte ur se : “In 1, 401( a pure k) ly P la ec n C ono hmic ara cste ens riset ic and s, b fo y r N re um seb arc erh of purp Plao n se Psa,r ind ticipa ivid nua ts, 20 ls in 15 the ............................................................... se groups should not be included in the coun t9 Figure 29, Average Asset Allocation for 401(k) Plan Participants Without Equity Fund Balances, by Participant Age or D wC w: wU. .ic S. i.or Dg e/pd parf/ tm pe pnt r_1 of 7_Ldacb_oprla , E n_s mp aloy ving.p ee B de f ne fits Security Ad30s ministration (January). Available at 30s sec35.2% ur101–500 itby indicated3.7% . 3.1% 45.5% 2.9% 17.5% 2.1% 6.4% 1.9% 7.2.2% 6% 1.1.5% 9% 13. 1.6% 3% 1.7% 44.0% >5–10 50s 23% 21% 23% 81.1% 19% 18% 24% 10.7% 20% 19% 20% 8.2% 18% 17% 16% 16% loa 2012, conc nse n out 2013, trast tion o a 2014, Longer-tenured participants are used in this analysis to capture the longest possible work and savings history nding f t . he a A nd ir t y a 2016 e ca cr ou -e fn o nd tr s in b d20 ata 09 a fo , la r tnc he eae rli p d e e fun r rcyeed nt as c ra sg .o em opf p a re ad rt ic wip ith p ants w ast ho yeaw rs. A ere (see note a). toffe ye arre-d e nd The tenure variable loa20 ns 15 wit , h loa 80 pe ns rc e out nt st of anding rece21 nt ly Salary 20s 9.0% 8.2% 40s82.8% 3% $30,000 60s All contribute t15.8% o, to encourage 9% , and t10.2% o enhance the developm 74.0% ent of sound employee benefit 20 sam ap nd le 30 of 0 p yla e a ns rs of using tenu a rg eiv w eit n p h th rov eide ir crur vra ernt y fe rom mp loy yee ar r t ho ad y eaacrc oun and tb b ea cla aus nc 4e e s g 401 re (k a) te p r atrha ticn $100 ipants ,j00 oin o 0. The r lea v pe e rp cla ent nsa.ge In invest Com ed 10 p in e a %ny q uit Inst ieis, w tutehil Re e sea 9 pre crh ce Pnt er spe held ctno ive e 16 quit , no. ies a 2 (No t all a ve t m the be r e)nd . Av of ail20 ab15 le a (Fi t w gu w re w .ic 30i. )or . Y goung /pdf/e pre 40 r16 1( -02 k) .p pla dfn b pa in nu ene this mb rtic fit e ipa a r s na o o nt f f ly fu s’ th sind e a s .ss 401( s e otff a k e) lloc re pdla ab n, ty ion c th ose ns , ne inc tra aluding in rlyth 400 e aab 401( na ilitly y si ko)s of f p hi la gn h 40 -sinc p 1( ok o n) me s o prs a ind r s tiurve civ ipa idu y ne a td s’ ls w to us a e s s a 22 of ve t in in a r2015. g the et -p d la a Bri tn. eg , S htS or ee c lif H oe p oc e ld y e a cle n nd, a nd Inve fun V ds a s; tme nD ae nd nt rhe the i VanD Ae vrahe p ila ai, r btle tends to be years with the current employer rather than years of participation in the 401(k) plan. One reason that job tenure m Ja ic ipa c ak t , nt w aw s’ nd w a.nb ss Loere ti Lu s w r.or ceg ar/pa s. 2 e inv p 01 eer0. “ st s/e w d The 13 in e 09 Iq m 1uit . p a yc tsecu of A riut tie os t -Eh nr ro oug llmh e entq a uit nd y A fun utd os, t mahe ticay not reflect length C eq ont uitry ibut por ion Es tion ocf b alaatlio anc n o en d 501–1,000 44.1% 20.9% 5.0% 7.1% 1.6% 13.6% o Rf eala ctiv >t10–20 io e nship particip a of nt s EB .” H R 60s o I/I 15% wev CeI r,40 14% the 1( fok) rm 16% Da sche ta 77.0% db ul 13% a es n ee P ed lans 13% ed to t ma o 17% tkhe e 12.4% the U16% niv adjus erse tm 14% eof Al nt is no 15% l 4 l10.6% o 01 ng(e 14% k) r re P qlans uire 12% d . Using 50s 12% National 12% w w .w 20 Te .d12 nur ol.g 5% . e “ ov 40 ................................ /s 1( itk e)s/ Pdla en faul Ass t/f eilte A s/ lloc eb................................................................ sa ation, /rese Aacrccount hers /s Ba ta la tis nc tic es, s/ra end tireLm oa en A nt-b cull tive itty ins in 2 ................................ /201 012p 1.”e ns ICionp I Resea lanbulle rch P ................... te in.pd rspefc tive 30 40s 40.9% $20,000–$40,000 5.1% 4.2% 68.8% 3.7% 2.5% 4.0% 2.2% 2.1% 17.7% 1.5% 1.6% 9.5% 1.7% 34.6% Young W er h pao we rticipa 30s n ar ts hae d consistently highe 12.5% r allocations to target-d 9.0% ate funds. A target-date 78.4% , or lifecycle, fund pursues a Sinc hired e p 19 ar96 tic, ipa the nt E s hold mploy ing ee bBae la ne nc fit e dRe fun sea ds ha rch I dn m stio tut ree t h (E an 90 BRI) a pnd erc e the nt of Inv the estim r a ecnt coun Com t b pa ala ny n cIe ns inv titu etst ee (d IC in b I) haala ve nc w ed or ked ticked up to of participation in the 401(k) plan, particularly among older participants, is that the proposed regulations for 401(k) plans w 21 percent and remaine prog d raatm tsha and s t lev oun el fr d om publ y ice p aol r-ie cnd y thr 2012 20 oug 10 h o th bj roug ectivh ye e resa er aere not introduced -re ch a nd nd 20e13 duc b ae tifor on.e E fa BR lliIng is ttho e only 100 or fewer 101 to 500 501 10% to 1,000 1,001 to 5,000 >5,000 increases t1, o 001–5, 57 pe 000 rcent for particip 44. a1% nts in the 19. ir 2% 60s with m 5. or 1% e than 30 ye 7.4%ars of t1. e8% nure. 14.0% a Fid gd ur ition, e 2, tD he istrib data ub tio ase n o cont f 40 a1 ins (k) only Plan ts, he P a ar cc ticip ount an ba ts, lanc aned s Asset held in t s ................................ he 401(k) plans at p................................ articipants’ current e................ mployers. 9 p 42 four artitc h foc >ipa 20–30 nt us s w es on ere Le sl pss Tha ight articly ipa 11% n m $nt 10, or s’ e 000 40 lik 10% 1( ely k )t o lo 11% hold an a catti9% v le ity a.st > so $40,000–$50 8% me eq 12% uit,00 ies a 0 11% nd muc9% h more10% likM ely or et Th o 9%ha an v $10 e high 8% 0,000 con 8% centra7% tions in 2001c H Comp oldRe ea n, fo ny tir fun r Sa e Ins am rd c a e s, a o tit h, nt mp ute a nd Ile nd nc 2016 te c oD o m dm a is e nie All p c re A us ap d l Sc ny s o eion rt q st hr s ua o a o ac c n f ss y k EB a .” . . vT 20 R e E w ra I/ B17 e RI ICI gnt e. y Io “find s -D f seve su 84.5% 28 efin e ing inv B n p es rd ie e a e C s n f, tm ront d cno. e o en th r nt tib 34 e w ut o r p a 9 re ion P tions s in ( sN ea ov fix rc la 8.2% in e h n P e m 2014, d ob -n a inc erthe rt) ic om . a ip A nd re a v elnt a a a secu il tions s’ n ab a A le vr chip e it ta ra iie vt 7.3% it g s su bie ee tw s, 201 of ce h 22 ea n s inv 6.” cst oe ntrib as Ib tm Cle I ution e -Re v nt asea lo ue p rtions a rte chs R aw e nd he por n t Compensation >$40,000–$60,000 until 1981. Survey data and historical 57.7% relationships and tre5.9% nds evident in the Form 24.6% 5500 data, EBRI 11.8% and ICI estimate the 50s For yea43.4% r-end 1998 40s 5.7% data, see 4.5% Holden, Va 4.0% nD 14.2% erhei, a2.7% nd Quic k 2000. 2.3% 8.1%2.1%45 1.5% 77.7% 1.5% 1.6% 30.7% 18, no. 0%9, and EBRI Age Group Issue Briepr f, ino. vate,38 non >0–50 percent 0 (D prof eic t,e no mb npa err)t. isA av n,a >50–90 percent W ilaabsle hi ng att on, ww D wC .ic -bi.or ased g o /pd >90 percent rgan f/p izat er1 io8 n- co 09m .pm dift ta ed nd exclusively to A long bout -term t inv he e sE tm BeR ntI/I straC teI gy Da , usting abas a me ix of asset classes that follow a predetermined reallocation, typically 25 The 2015 EBRI/ICI 401(k) database is a representa20% tive sample of the estimated universe of 401(k) plans. At year-end 20 t fun og p e dt e s, c he rce rom nt on >5, p aa c t 19 000 olle ry e 98 e da c w rt 19 -ing it e 99 nd h 79 a20 nd 20 00 p 14 a en r 20 ca ae 01 ly nd nt zi 45. ng 18 in 201 2002 9% a pnnu e20 r4, 6 c03 eant l d 1 20 19. a a p 04 tt e a 1% yr e c on 20 a ernt 05 -m e in 2 nd ill 20 io 06 20 ns 00 5.2% 15 9, 43 20 of 07 (40 Fi g 20 1( pu 08 ek rre )c 9. e p 47 20 0% nt la 09 )n p .in 2 20 a H 10 r 00 ow ti2. c6, a ipa 20 3% ev 11 e n nd rt, s’ 20 no 7a 12 c p t c e a 11. o 20 rll p c unt 13 6% ent as. T r 20 tin 199 ic 14 ipa his20 nr8 (F te 15 s ha porigur tv e re e a fle c3 cc7) e ts s. s $20,000 Number of plan participants > 30 . 2016. “A Look at 7% Private 8% -Sector 10% Retirem 8%ent Pla 7% n Inco 9% me Afte 9% r ERIS7% A.” ICI 7% Researc 7% h Perspe 6%ctive 6% 22, no. 6% 8 Rus Th sell e p20 ositi 00 ve I nde corre x. Ta lation com bea tw , W eeA n : te Fnu rank re a Ru ndss ae cll C coun om t b p a aF ln aiy nc gur . e S& e 22 isP e 50 xp2006 e 0. N cted e w be Y ca or us ke : St lon ag nda -ter rd m & e mp Poor’s. loyees have had more time Retirement savings held in plans at previous employers or rolled over into individual retirement accounts (IRAs) are not equities. At>$60,000–$80,000 year-end 0–2 2015, 7 percent >2–5 of 49.0% 401(k) plan p >5–10 articipa 6.8% nts in t >he 10–20 2.ir 2 % 20s h 29.9% ad no >e 20–30 quities, com 14.4% pare >3 d0 with 13 percent s a Fi a g ta la ur r rg ye .e tFor 30 -d, ata A e n s fu set A ana ndly s llo suit isc e a o tf iion to s401( coun k )te E p q da uit rt as ic ie a ip s Va a sing ntrsie l’ ec d o in ntrib W veide stme ution ly nt Am a oo c png tiv tion. ity 40 d 1( uring k) P la the n P ba eratr icm ipa ark ntest ................................ of 2000 to 2002, se2.3% e H............... olden and 32 ( w June w .w inv 20 .e )e . 15 bst A ri.or v c m . ae ila Pg nt 50s r/pd iv bs, b le at f/ e aond b tP rw e iens w fs fun w ion P p.ic ddf/ s, a i.or Ela Bpn B g n RI u/pd db_ lull m iIc p B f/ one e _0 p 14.7% top in, A l11 riycy _1 fun - r 20 6_ bes st d 1 re rs. 0_ ear ac c_ ch N tsu o349 an of rv 20 d e ed y _E 13 _q B u 4.p For cat RI_D id o m 7.4% n f C o 55 IInA 0 eco 0 A .pdn fnnu omiac s l Re ecu pror ity ts an ( 77.9% Ve d em rsion plo1. yee b 0). 35en Wef ash it i ingt ssues on, . 60s 46.1% 5.5%20s 4.1% 3.8% 11.3%2.6% 2.3% 8.8% 2.0% 1.4%79.9% 1.4% 1.5% 29.4% number of a A c lltive 401( k) participants 45. to 3% be about 19. 54 0% mil lion in 5.2015 4% and the 8.1% number 2. of 0% 401(k) pla 12. ns 8% to be about 550,000. The www.ebri.org/pdf/briefspdf/EBRI_IB_12-2012_No380.401k-eoy2011.pdf Number of Plan reba Ala ccount ncing Siz Source: e to sh Tiabulations ft its foc from uEBR s fr I/IC om I Participant-D growth to inc irected Retirement ome Plan as t Data he C ollection fund Project. approaches and passes its target date. At year-end 201 the 5 y, ea ar ll 4 -end 01(20 k) 15 pla upd ns he a22 te ld of a ttot hease l od f $4. ata 4 t and rilli Eon BRI in a ’s ass nd etIsC , Ia ’s ong nd the oing da traebsea ase rcrh in epre to sent 401 s a (kb ) out pla n p 43 a pre tic rcipa entn t of s’ tahca tt iv ity. R The to e40 la E1( tB io RI k) nship /I pC laIn lo P a B rate ns ic tipa w —Age Group e fnt a ec-n tD or 4 irie 01 ng cte ( in a d k) Re ll 401 Ptlan Acc irem (>0–50 percent ke)nt p a o Prun la tic n D ipa t Ba a ntta s la C w nces an olle ith a c >50–90 percent tnd ion P w d it rS oje hou alary ctt loa is t n a he c la creg >90 percent se sst in t , m he os d t a re ta pb re asent se, only ativ e16 re p pos erc ite or nt y Figur (e D e 3, 401( cem >$80,000–$100,000 bek r) ) . PA la vn C ailah ba le ra a ctt e w riw stw ic.ic s, b i.or 42.8% y g P/pd lan As f/pe sets r22 Si, - z0 e 20 of 8.p 1 Account 5 d 7.3% ................................ f Balance 33.9% ....................................................... 15.9% 9 43 to accumulate an account balance. However, a rollover from a previous employer’s plan could interfere with this positive 60s 14.9% 6.7% 78.4% included in t he Dist ana rib lysi us. t 30s ion Fu orft 401( herm Ek) or BR Plan eI, ’s a m ccs, Part e om unt 15.5% ber s bhi a icip lp i annc can e lu s a de t4.7% s, an s r a e c ne rd os t A 10.1% s of -sset seunpa ction of s, b id loa y pe In ns n b v io ea n st la fun men nc 74.4% ds es. B ; bu t O 4.5% seip c ne a tio sus ses n e;s t of , 2015 rad ae as ll the sose ciatfa ioc ntso ; rs, of 401(k) pla Note: n p Ava erage rticipa and median nts in 401(k) the loan ir 60s amounts . A are bou calculat t th ed r e among e-qua participants rters w of ith 401(k) 401( loans k) p at la year-end. n participants in their 20s had more than V All a In nD D the eC rhe : d U. 39.2% i a2004c S. tabD as ee .p ,For a 401( 4.5% rtm summa eknt ) pof larn 3.6% L ya p sb a ta o rticip tis r, tics Ea m P nts p 3.3% a orloy n t’ icipan ho ce oe ld ntrib B ing tsene ution s2.3% ofit f,s Se aand S ca tila c v cu ry ity or 2.1% nc it Ra in ye nntra A g 2015, d em tion ini sst 2.1% ein, r ea U tcion (Se tk omp us a any n 1.5% p dt s e Yo to mc un bke g ha r )2016 . v 1.5% A e vta eila a nd nd b ele d Ao to a 1.6% n t d 2016. ecline . In 38.5% the Plans With Company Stock Size of Account Balance estim< a 17 $10,000 te of the 0% number of 39% active 39% 401(k) p 37% lan par35% ticipants 36% is b Ya ears se 39% dof o Tenure n a 39% combina 35% tion of 37% data fro38% m U.S. 41% Departme 42% nt of L 38% abor, Concentration is hig hest among recently 46 hired participants with target-date funds; at year-end 2015, 82 percent of 20s 40.1% 13.7% 46.2% 2015, 20 pe >$100,000 rcent of 401(k) assets in the 31.8% database were inv 8.1% ested in target-dat 40.4% e funds, up from 18 19.7% percent at year-end t 11 otal. The d atabase also covers 48 percent of the uni verse of ac26% tive 401(k) plan participants and 18 percent of all U. of haS. d inf loa D or em ns p $10, a a rt ou tion a m 000 te stnt abnding out of L indi a b aor t vy , idu e Baur a r-l 401( e ea nd u o 20 k f L )15 p ab la . or n p On St aa ra ttic v ist e ip r ic a as. 20 g nt e , aov c12 count e. r N the as. A tion pa s of a st l C 2o D 0 ye m ec pe e am ns rs, a ba etrion S m 31 ong , ur 20 p v1 a e5 ry, t: ic tE he ip m a p nt Eloy Bs w RI e/e it I C h loa BIe d ne an tfit a s b s in t ase he Participants d All labor uni 12.2% ons; health care providers and i 8.2% nsurers; government org ca79.6% nizations; and service firms. 1998 19 40s 99 2000 2001 2002 2003 17.3% 2004 2005 2006 20079.8% 2008 2009 2010 2011 73.0% 2012 2013 2014 2015 E H c Fi oold g B rre Th ur R e e la e ?n, I/I tion a31 s M Sa s, e o C t b E rra e a xpo e 4 I h, c lla o 40 us c a 0 su a nd 1 e tion r1(k (k e aJa t) p ro o p cll a ) k E o th lan q V v Da ui e a tha rn pa t ic D t etoabas s I e uld r the rti he nc c g tip i. ra iv erg 20 e a a e n sed e a 01 t ts -sd a ho h a A . te m eld rt “40 -ong fu te equ 1( nd nu k40 re ) fo it P d 1( llla o ie e k w n m ) ss a p A P tloy ss a o t y r t e se ihift tc ea e ipa A ar lloc it - hig ns en t s B a fo h td ion, ca 2 e us ctc w 0 o fro A 1 e un c e 5 m c n 2007 t th ount b ga ro a la n w nc B before th a a elnd .a to Th nc inc 20 e es, re 15 o th me a is e f ................................ nd s o oin v L me e oa a r n t n A dime c isial m cce tis rnib iv ity ta y lp e r in 1 ic k eet avllid y 99 e.nc 9.” 32 e P ita is rt inot cipa cnotr s’ reacctc tou o p nt re b sa um lanc e e tha s v ta trhe y not cha onl nge y in t with a he g ae v earnd aget eor nur mee, dbia ut n a als cc o oun witth sa bala lanrc ye . Fi for gur the e 16 da t ra eb pa or se ts t as a he a w chole coun t 80 pe $10,000–$20,000 rcent1–100 of their accoun 32% t bala 32% nc 40. es inv 1% Percentage of Account Balance Invested in Target-date Funds 31% ested13. 29% in e 9%quit30% ies, c 7.om 4% 33% pared 31% w8. it6% h ab 28% out one 5.9% 30% -fifth of 30% 401(k31% ) plan p 10. 32% a4% rticipa 31% nts in wake of the collapse of Enron in 2001, p1a –25 rticipants’ awareness of the need to diversify may have increased and some plan w 36 w .w 20 .d Source: 13 ol.g . T “ ov abulations 40 /s 1( itk e)s/ from Pdla e EBR n faul A I/IC ss tI /f Participant-D eilte A s/ lloc ebsa a irect tion, /r ed e Rse etireme Aacrccount nt he Plan rs /s DB ata a ta lCa tollection is nc tic es, s/ Project. ra end tireLm oa en A nt-b cull tive ittyins in 2 /201 013p 2.”e ns ICionp I Resea lanbulle rch Pte in.pd rspefc tive Inves Source: Tabulations from t m18 ent 1–100 Options 30s O 101–250 ffered EBR by I/ICP I lan P 251–500 articipant-Directed R 47.7% 501–1,000 etirem e 1,001–2,500 nt P Plans lan Data C 12.8% 2,501–5,000 ollection P Pra oject. rtic 5,001–10,000 ipants 39.5% >10, 000 Ass Ae ll tPl s ans Bureau of Labor Statistics 2012, 2013, 2014, 2015, and 2016; and U.S. Department of Labor, Employee Benefits Security recently hired participants holding target-date funds held more than 90 percent of their account balance in target-date FigurPercentage e 4, Source: Source: EBRI T T/ abulations abulations Iof CI participants 40from from 1(kEBR EBR ) D I/IC I/IC at I I a Participant-D Participant-D base Re ir irect ect pr ed ed esent R Retirement etirement s aPlan Plan Wide D Da ata ta C C C o ollection r llection oss Project. Project. Section of the 401(k) Universe ................................... 11 B 2014. rady, P A em teong r, K im pabre tic rly ip 50s a Bnt urs in t ham, he and ir 20 Sa s, 4 rah 7 H p16.9% old erce en. nt 20 of 12 the . iThe r 401( Suc k) 9.3% c e ass ss eof ts w the e rU e .inv S. Re estte ir 73.8% d e m in t ent ar g Sy ets-td ea m te ( D fun ecd es a mbte y r) e. ar- 40 32 1(Unit k) pe la dns St .at e The s, M da is rtcrh 201 ibutio2. n o W f a ash ssingt ets, p on, art D ic Cip : a U. ntS. s, a De nd pa p rtla m ns ent in t of he La d ba otra , bB aur se ea fo u o r 20 f L 15 ab is or si St mailta isrt ic to s. A the v a uni ilab ve ler se at of out include st anding d st Note: a, tis a Percentages tbic ou al info t 14 may r pm e not add racte io nt n a to 100 of bpercent out the: rbecause emaini of roundin ng ac g. cAccount ount balances balanc are e participant remaine account d 40s unpa balances id. held U. in S. 401D (k) eplans part at m the ent participants’ of Lab current or data >$20,000–$30,000 Source: 101–500 Tabulations from 28% EBRI/ICI Participant-D 28% 41.7% ir28% ected Retirement 18. 25% 1% Plan Data 26% Collection 5.7% 29% Project. 27% 8.1% 25% 4.9% 27% 26% a 27% 15. 28% 1% 27% o Age f rollover a ssets among the participants with account balances greater than $100,000, as 3 percent of them had two or fewer re fe At rre Iy nv e dae c r to s r - N N Nt e is ote: ote: o m a nd te: R is se At Account the nt (y 2015, yow ear-end C ea percentages m g om balances lir d59 2015, -e p en a pp ny a are the d eth. rc 2 participant av Ie n erage 0 B nt ay st 0 e not ic 7 t o account a u ), f account us tadd to 100 percent because of rou no e a e P n n balance d e – d balances irta s m spe crg us among o e c ss tion t held -iv t h de a all s in t a e 7, no. 26.1 o 401(k) d f b th a a million sla plans se m nc e 1 (Ja t 401(k) e a at d ll a the o nding. " j mutu particiants nua c o participants’ artion itry a y El of th ) quity u w , fu as s a current nd ua nd $73,357; funds” include m lleir a a yE s employ fo B se the RI c ts us c median ers c I w ss o o and eu n ue re n account u are the tual funds, bank ts aB net sr in sp ie u of be me f plan alance v rc , es no. e d loans. nta te to wa23 s d g collective R b $16,732. e in etirement e 0 (F oinv f equ th e e Account b e s sav r t it e ua p ings d o ies rtfo r balances in held y).. e li in For q A ouiti vinv a il ee a ss b ( te le se d e b re aflect lancs t es of he e Source: long xpee r Tie r abulations -t nc enur e 40s of from ed “ t EBR p ya pric I/IC tic a I l” Participant-D ipa 40 nt1 2 s a ( 6–100 k) irt ect p the ed la 46.0% R n p ir etirement ca urrtric e Plan ip nta De nt ata m s. C p ollection loyerProject. s’ 13.1% 401(k) plans. Retire 40.9% ment 25 sa .4% vings held at previous their 60s Equit . y, bond, money, and/or balanced funds Percentage of Account Balance Invested in Target-Date Funds 76,479 10,718,267 $639,486,832,441 spons 19 ors , no. ma employ y 12 ha ers , a v and e nd c are h Ea net B ng RI of e plan d Iss p loans. ue lan B R d etirement reie sifg, n no. sav (se ings 39 e V held 4 (D anD in plans e ec rhe e at m iprev b 200 eious r)2) . employ A . v In aila ers adb or rolled dle ition, atov w er into sw ome w IR .ic As are oi.or f this not g/pd included. mo f/vp ee T me he tenure r19 nt -12 m va .p ariable yd b f e is a the nd generally res ult of Number of 27.7% Participants in Plan Ad Sou minis rces a tra Note: tion nd Account 2012a, Ty balances pes 2012b 60s of are participant D,a 2012c ta account , 2012d balances , 2012e held 16.4% in 401(k) , 2014, plans at 2015a, the participants’ 192015b 8.3% current , 2015c employ, ers aand nd are 2016 net of 75.3% a plan . loans. Retirement savings held in funds (Figure 38). Fifty-four percent of recently hired participants holding 47non–target-date balanced funds had more are plans 501–1, participant at prev 000 ious account employ balances ers or rolled held ov in er 401(k) 37. into 5% IR plans As are at the not participants’ included. 20.9% The current tenure employ v6. ariable 3% ers is and generally are net 8. years of 9% plan working loans. at Retirem curren 5.0%t ent employ savings er, and held thus in plans may at ovprev erstate ious 17. years 9%of end 10 W 20 >$30,000–$40,000 a 0 15 sh t; rus ingt a t N m s, ote: on, ong life The insurance separa D analy pC a: rsis tIin c includes ipa v 23% est nm t401(k) s in t te accoun ent 24% plan C he Eom B participants ir tsR , an p 60 I 25% ’asd w n s, 1 any y w or I ith poo 7 ns k tw 22% p a t o le it e or dv r d ut c few inves e eae nt nc . r 23% yA e ears tme of vs an of ilk tthe a pro now tenure b26% ir ld e l uc 40 e in adg tthe pr t1( e w iy ma a ear kw 25% )rnd u w il indicated a y .ic ss inves e i.or nde ts w 23% and teg dr s /pd in in equ tea a rn plan edi f/ inv 24% iti png offe es. p r e_1 ring of Ist n a e e 2 company dditi d _s 24% m in t uc pl on, o c stock ay 401(k eress ge 24% be e as _ )t par an r-e dne ta ti irt cfe ei i24% pan tm sfun a e ts nt nd t d.p s.24% dhe f ir p Tabl Fila gns ure a e 32 s r o , ef A por sC $0 set A to ent d b llo e y cnt ta he tion D s U .S.is D tre ibu patrion o t a ment f 401 of L(a kb ) or Pa (rF tiigur cipae nt 4) A.cc oun t Balance to Balanced Funds, by Age .................. 33 indicw atw ew tha .b years ls t .g loa working ov n /n a at current m cs/ oun ebemploy s/ ts t be ene er, nd and fit to s/ thus b 20 may e 12 a ov /e ne erstate b gb ligi l00 years b50 le of .p p participation or dft ion o in f p the 401(k) lan a plan. ssets. Group plans Zero at previous 1–10% employ 50s 59.0% ers or >10–20% rolled over into IR >20–30% As are not 43.3% included.T >30–40% he tenure variable >40–50% is generally 13.3% >50–60% years working at >60–70% current employ 43.4% er, >70–80% and thus may overstate >80–90% years of >90–100% 101–2,500 Inve y in e a e rq s s a uit tm t o f w ie .e e t20 w s nt xa e employ participation ,nu w Of w the 16 m Comp .ic re p ers a i.or ,le . g or a li P , in n hic a d rolled rg a ny d e iv the b /pd ha p 6 out : tar 401(k) ov In ta e p f/ th er s e P p get- into tit trc plan. h g e eute e r e ns r IR e 0 nt date funds n As e 7 e ion P , -ra - o are q Qua 01 f ua llnot the y.la p rrte re included. td n B m efl frrl are e s a h y c ull nd a of ts S d C an e up omponents the p t b w in, A a e opt p w r tw le tw d ic ion m e e.e b ipa e c e may st li n b nta ning r r n tw i.or a not try c s in t o t add g p Dat of a/pd e to nd 49, rhe 100 20 ca e 597 f/ fiv )nta i1 . percent rb 4 All e r20s ie g y For o e e fs c because a a o p ha m rtion f s d e f/ d o 55 q f 02 of m uiti to t0 rounding. e or 01 0 A nu e ee 8, s q ib. re uiti nnu 185, in th p (a the d e sn 80 a e 523 s f l Re e in p Fi o ta g p rtf pure re or g o re c li t s te o 12) - nt d (aVe a s .to e it rf th $475, si fu aon p nd e pir ro 102, 1. s 40 a i0) sc 536, he a 1 . s (W s s kum 915 )a a p nd sh e lad ingt n p to as on, sveasry employers or inv estment am Age Group oun option. ts rolled over to I>0–50 percent RAs are not included in t >50–90 percent he analysis. To capture as long >90 percent a savings history as regulations put in place All by the Pension Protection 14.9% Act of 2006 (PPA), 9.4% which limited the leng 75.7% th of time participants could be wwwm .e 1, ay b 001–5, r hold equities through balanced funds or com i.org000 /pdf/briefspdf/E44. BRI 4% _IB_012 16. pany -13 1% stock .No39 — 43% s 4.40 ee F 5. igure 30 for the distribution o 1 0% k-Update- 7. 20 6% 12.pdf f 401(k 4.8% ) plan account balances to 15.9% Figur> e$40,000–$50,000 5, participation 40 Sour 1(k) ce: in P Tthe abulations ar401(k) ticip 22% plan. an from t s R EBRI/ICI 21% epres Parent a tic22% ipant-Dir Rang ec20% ted e Retir oem f Ag 21% ent e Plan s ................................ Data 24%Collec22% tion Project. 20% ........................................................ 21% 21% 21% 21% 22% 12 1996 1999 impor 2002 tance to t2007 he nation’s2008 economy a 2010 mong poli2012 cymakers, t 2013 he news m 2014 edia, and t 2015 he public. It than 9 • 26 0 p .1 e rm ce illnt ion 401( of theik r )a p cc la on p unta r bta icla ipa ncn et s, in inves ted in those funds at year-end 2015. BrightScope and In 60s vestment Company In 39.5% stitute. 2016. The B12.6% rightScope/ICI Define 47.9% d Contribution Plan Profile: A Se 20s veral re 37.1% c or dkeep 1.2% ing organ1.1% izations prov 1.2% ided reco 1.0% rds on act1.2% ive participa 1.8% nts in 401 1.2% (k) plans 1.1% at year-end 1.0% 2015. These 52.1% Introduc Equit tion y, ................................................................ bond, money, and/or balanced 2,50 funds 1–10,000 , .......................................................................................... 7 Cha 3 nges in Conc 20s entrations in Equities Si7.5% nce the Financial Crisis 8.3% 84.2% equities. The tenure variable is generally years working at current employer, and thus 2013 may overstate years of participation in the 401(k) w the ith ta D inv rC g: e e as tU. c to c d >5, S. ount a r te a 000 D g , e e w s inv .p hic a Arsth se m es is t e t e a nt us d ll o ua of in e calltion Lya q ind b uit oto 35. rie ic , a s a e E 3% tq m euit d tp y in loy ie esa th e r fo - e e 20. e r B nd fu ta e 6% nd rg ne 20 ’s efit t15 -na s Se d, ame te up c .3. fu u fr Th 3% rnd it om e ys ta A w le d rag ss m se ini b tt a ha 6. dst sa 6% en h te rd a to g ion (Se a n elf of ne Mo ra 5. rning p ll 8% p y at ris e tim s ctta ipa he br e r a n d)na t a . s i te A lyn th vs aa is t ila w o eb hic f irle ta 20s h rag the t21. e ta -0% td ty a yp tee ic a a fu r-l e nnd d p oss Seeible >Inve $50,000–$60,000 , only stme long nt Comp er-te anur ny 19% Ins ed tit pa ute 19% rtic 2017. ipan 20% ts a At ry ee a inc 18% r-e lude nd 2016, d 19% in t his 401( 21% an ka ) ly pla s21% is n. s H ha ow d 19% e $4. ve8 r, tr itil 19% li is im on in por a 19% stsa ent ts .t o 19% note th 19% at the 20% tenure does this by conducting and publishing policy research, analysis, and special reports on required to hold company stock contributed to their accounts by their employer; specified rules regarding the notification of b 50s As 26 seW t 80 Ah lloat ca we tion a do nAll d I nvestment Optio 43.9% ns 13.3% 42.8% Age Fi g ur e a nd 33 . 20 , Ten A 13 sset A . ure Natllo iona of cal 40 tion D Com 1(p k) is etns rP ibu a lan tt ion Su ion o Part f 401 rvicipan ey: (k E)m P tp a sloy r t iceipa e B nt e ne Acfit coun s in t t B he a la Unit ncee d to St Ba atla enc s, e Ma d r Fu ch 2013 nds, by . W Te anur shingt e ............. on, DC: 34 401(k) Plan Loan Activity Varies with Participant Age, Tenure, Account Balance, and Salary 30s Close and 44.9% plan. S Look a GICs alary tand/ inform 40 2.6% 1 or (ation is ava k ot )her Plas 2.1% ns table , ilable for a s 201 value 4. Sa f2.0% unds ubs n D et of partic iego, 1.6% C ipA ants in the E : Br 23, ight 127 1.5% SB cR op I/IC eI 401(k and 1.8% )W database. a6, sh 926, ingt 866 on, 1.3% DC: Inv1.4% est $515, men 936, t C1.5% om 218,p 799 any Ins 39.2% titute. pla Be n r ca eus coe r d A 401( k lleep ke ) 30s rps inc lans lude were m in ut tro ua d 36. l fund uc8% ed >1 ne 0,00 c10.2% o am rly 0p 19. 35 anie 9% ye s, b arsa a ngko s, ins , 3. o 6% lde ur ra an nd 9.2% ce lon 6. com 8% gep r-a te nie nus, a re 5.7% d n ed m c ponsu loye 80.6% eltsing wofi uld rm no s. A t 20. ha lthoug 1% ve h the . 2001b. “The I Age Group mpact of Employer- >0–50 percent Selected Investment >50–90 percent Options on 401(k) Pla >90 percent n Participants’ Asset Allocations: Size >$60,000–$70,000 of 401(k) Plan 16% Ac17% count 18% Balanc 16% es17% 19% 19% 17% 18% 17% 17% 17% 18% More 401(k) plan participants held ee mqpl uit oyie ee s a betne ye fia t i r- se sue nd s; hol 2015 di ng com educ paarte io dna w l it br h ye iefing ars- f eor nd E20 BR 07 I m , a em nd bem rs,o c re ong ha reds shighe ional a rn d inv E a s B s RI e e s t w to / a Iw C ll r. o w 20 Ifo 20 c.d 40 a r 07 tion 16 ol.g w 1( . ho ak Ov . ov ( )m s “ D e 40 e /s tha r e aa it 1( tMo ll, mo a e t b k s/ fu ) a rning d se nd Pela rfa ................................ e n is s ul tt ha A a d tr /f ss en s 2015 ile ig e 90 ts/ n A e e lloc d p a b e n w sa rd a c o /r e tuld no ion, nt ese te re of a A 39 a r40 c c c................................ c h he fo ount 1( re r rk sa tir /s )d e p B d tm a a iti atrle is o a tnt ina nc tcic ipa a l e s/ g d s, n r e is e t a c a s ha tus nd ind resm ion L s d................................................................ to oa e a nt )p t.n A -le ma ba ull cst k tiv ing e t so iitns y n m in 2 e /p e w rinv iv inv 01 ae t4.” ee st s-tm m p Ie e C e ns nt nts I ion Re in e in sea -p the q la uit rn c h P - fu ie bnd s a ull er .et spe t ins yec a -t...... ri- ve end 7 v Fiagrur iab ele 6, indic 401a (k) tes t Par he ticip time an tt hs R at epres individu ent a als h Rang ave b e ee on w f Joit bh th Ten eu irres cu r................................ rent employers and m ................................ ay not reflect the length of ............ 12 a b P Bla a ar la ctk in c oc ipa ut edn p fun t e riod ass d, e s;tt a a a rnd llo ge c tre - ada tqion uire te a fun dl so va qd ua , rt arnd e ie rly s w non stit ah p – tetm ala re gnts n etsi - d tha ze at e ( t Fi mu bg au la srt e nc inc 25 ed lud , fun te op 2007 ad p no us ane tice e l) v , a hig rbie ut hl d ig m som hting uch ew of the ha the tim b y p v a o ar rta g ia etnc ion c am e o of ng ad n b iv re eers c e e ific nt xpla layti ine o hir n e dd • 101,625 employer-sponsored 401(ck) plans, holding 23.5% Of which: target-date funds are an option 14,566 4,721,893 $355,831,919,842 40s U.S. 52.6% Departm 40s e3.6% nt of 20s Labor 2.6% , Bureau o 2.3% f L 11.3% ab 11.2% or St1.7% atistics. Av 1.6% ailable 8.1% 8.2% at 1.6% 1.2%80.7%80.5% 1.3% 1.5% 30.0% 4 >$70,000–$80,000 Plans With Compa16% ny Stock 15% and GICs 16% /Stable 15% -Value Funds 16% 18% 17% 16% 16% 16% 16% 16% 16% p The articip A inv va aeila te std b m le in e n a 401( tt op ww k tions )w p.ic la i.or ns tha fo g t /pd r athe pf/ lair p n o p erntir _1 ffe6_ e rs c cd ac a re p n signifi e lars n_pr . Thof e c a ile Rnet _4 v ly 23 e 01 nu a .1% ff k ee . p Ac ctd t fhow o f 1978 particcoipa nta nine ts a d lloc a pa ro te v is the ionir th 4a 01 t b (k e) c aam sset e Inte s. Figu rnal re 22 The EBRIP d /rI ae C tlim a I bpa ina rse oje rinc y c tFi lude ha nding s s 401 colle s.” cW ( tk e) or d p k da ia ng rtta ifc ed p fr ipa a er op m al nt e a rs 19 g p a en r96 cer cp oss y a t s hr rte aa oug d ff ,w for an ide h dt2 t he 0 r ha e n 15 nge C, e ew nt t he sof e m r uni a ed for gie a v ;P e a a e rnd nd s se nsion a tof e po nur d ns and or e ta ig ng p Re rr ou pu otv ir p bl ide e s. A im c re o s m tpi nt y ni e Re a on a yr sea s -ve a ur nd rv r yc e h (C y f20 rsom on e 15 P , y RR) m 49 ea plr oy p C te ur o erec r e ent nt In the 2015 EBRI/ICI 401(k) database, 87 percent of participants were in plans offering loans. However, as has been c onc Thee Em ntra p $70, tloy ion e 000 s in e e Bene quit fit ie Re s. Ove search raIns ll, taitute t ye a(rEB -eR nd I) 20 is a 15 no , 9 np p ro er fit, cent no np of a 40 rtis 1a (k n, ) p pub lan p lic a pr otliic cipa y re nt se s he arch ld ono rgani eq zuit ation ies, d thaow t dn f oes rom not Age Group >0–50 percent >50–90 percent >90 percent At ye 22 aa brst , -201 e no. rnd ac5 t3, a - 20 . 20 15 14 nd , .p tE he d BfRI av Iesrsu agee Barc ie coun f, no. t b42 ala 3 (A ncep w ril) as $73 . Availa ,35 b7 a le and t wtw he w m .ice i.or diagn /pd acf/ coun per2 t 2 b-a03 lan .p cd ef w aa nd s $16,732 (Figure 9), time t60 hey have participated in a 401(k) plan. One reason that job tenure may not reflect length of participation in the b Fiyg Sour ur diff e e34 cre es , nc A ae s nd s in t set A Tyhe p llo e s of cinv ation D eD stam ta is e ................................ nt tribu opttion o ions f 401 offere (k d) bPya r p ................................ tla icn s ipap nt onsor Accoun s. Fo t B r a ela xa n ................................................................ m c2015 e p le to , C tEBR he om p p I/IC e arny cIe nt Sta og ce k of in 4 p01 lan a (k)s sets Plans inv We itsh te.d 7 p (saere ti c U.S ipa E. quit nt Jo sy int — , bond, rCommitte ecent mloney, y hir e e o and/ d n p Tax or art balanc a iction ipant ed 2006) s in t funds . he , ir 20s were more likely to be highly concentrated in such funds. For >$80,000–$90,000 1–100 50s 30s 14% 14% 35.0%15% 11.1% 15.0% 16. 14% 4% 14% 6.9% 16% 8.9% 7.2% 16% 6.5% 15% 1.9% 15%76.2% 15% 81.6% 14.5% 14% 5. 14% 7% 15% 33 12 50s www 55.9% .bls.gov/n 4.1% cs/ebs/be2.7% nefits/ b20 enef 13 2.4% it/e isb su bes l00 . E 52 B 1.8% R .pId ’s f E duca1.6% tion and Re 1.5% search Fun1.1% d (EBRI-ER 1.2% F) performs 1.4% the charitab 26.4% le, R p ye r ee a vsent r e. nu In a es t Co d he d dit ed ion, S ise tc ribut tion the io p 401( n o lans k f p )w . la Th itns h a e, la ny pw a r gt w iv ic eipa e nt n p n into trs, a ove ide ff nd erc a t m ss oa n e yt J s c a ha nu bynge a four ry 1, fr o c 1980, om m y be in a ba rut ttio o itns y w e a a of sr , no inv wt hic eun sth ch m til eNo natnge v offe emb s t re ings. he r 1981 pla ns tha pt rov pro idpeod s. ed of L Othe pife a Pre stty ir ns cr ipa le e ion P sfu e na t nd s w rc olic s h m e syr ug a eIinta ss g in t eue s 20s in the s s C ath ir p onfe a 30 re t d mo s or erte e snc t rmine 40 401( e, s, w ad t k )Mia ri hil p sa k e 36.3% rticip m l14 ei U ve p l a niv e a nt r nd e c se r d si nt goe t y n no of , eOx ra t pma ll afor y rt k u ic d e 14.7% sipa , ea OH c w n tiv o t, s w rd eJune s c ha e sr uc e ng 8 h in t – eas 9, 2001 s he to “c ir o th ns 20 49.0% eir e . s, 26 rv as astiv e te p a ,e ” llro “mod cc eant tions w era e rtde eurin ,” in t og r he an iry 50s, t Fi he gur ca ese 7, fo Dr om the est 20 ic S yt eoc ark s t ah na dt B the ond d a Ma tab rk ae se t Iha nde s t xe ra sc ................................ ked 401(k) plan partic............................................................... ipants, relatively few participants made use 14 of lob 13 b pye r ocr eta ntk e a tp y oe sa itr ion -end s on 20 le07 gis , la ati nd ve 48 pro p pe orsca els nt . had more than 80 percent of their account balances invested in equities b ut •b w a w $ la 1.9 w n.e c e 101–500 tb s v rrill i.or ion in arie g/pd d w af/ ss ide be rly ie ts. . fsFor pdf/ eExa 34. BRI m 8% p _le IB, _4 ab 23 out 18. .A 9% p thr r16 ee .4 -q 01 ua k- r 6. Up te 5% rd s of ate.p the df p 6.a 3% rticipant3. s in t 5% he 2015 12. 4% EBRI/ICI 40 4.4% 1(k) database 401(k >) $90,000–$100,000 p and lan, com papany rticula str oc l40s yk 13% among 13% older p13% articip 17.1% a13% nts, is t 13% ha Figure 31 t 817 the15% prop8.3% ose 15% d reg4, ula 14% 478, tions 82514% for74.6% 401( 14% k) $337, plans 13% 616, we706, re13% not 768 int13% roduced 60s 10.6% 6.1% 83.3% in c exam om ple pa , C n60 om y st p po e ac r nc kye rnt St ise oof s w ckr, e it b ch y e nt p Pla a ly rn size, thi icipa ree duc dnt p in p a ta A iona rg ta ie cr lipa t................................................................ ,, ab nd s netc s in t acus ient ehe iffe iir cw f 20 unc sm s he ta ions ll ld p of la m n tor s offe hee I t ns hr taie tn 90 ut d ec.om E p B e p R ra c Iny -eEnt R ................................ st Fof oisc a t tk he aax ir s a -a en in c xc eou mv pt nt e or st b m gaae lni ant .......... nc za op teion s tin ion. 35 Investment Options ................................................................................................ Figure Figure Me Figure d47 ia15 n 17 ........................................... 7 H 60s olden, Sa 58.6% rah, Danie 3.9% l Schras 2.5% s, and Mic2.2% hael Bogda 1.6% n. 20Figure 16. “1.5% Ow 45 nership 1.4% of Mutual Fund 1.0% s, Sha 1.1% reholder Se 1.2% ntiment, 25.1% and Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. 30s 40.9% Figure 2812.6% 46.5% a Figure 19 44 regulations were issued (see Holden, Brady, and Hadley 2006; Employee Benefit Research Institute 2005; and U.S. Internal Thu g a “a nd iv g e g s, a n r11 e ? y s e .s g p Near a iv 20 g e r. e rr 501–1, 28 e ” c 16 For e g in nt ly a bt. the e ew 6 xa 000 P figur 5 re ir iv m r p e na a p e tle in t e e me r,s in t c P a en he e n to ns ir IC t o h ii nd on is 60 I f sic rs (F urv 4 e P a0 p la 35. te 1 or e n B igu y ( 6% th t k og e ull ) p rf e efu r ne e e 5, up lan nd tcin Hi r oa rd ’sll 17. s y k ,ri p co s e 4% s e sh te k ror p ould v le p e ierin c a rva s ne e Figure l T l. c not o l) L g a v . i e fe b The n 6. ring le b s ea 4% ty e s a 11 lr us m e mo ly nd fu e e d d th re nd G ia t r r tha o n a sa ee 5. p g e2% hs e n st g -ne q e im 29 u 19 of ra a a m ll 7 trte y 5 ters il he li – a t3. o im 201 r n e p 4% of 4 a e DC inc r 4 ttir lc ( e ud p ipa Ve nds. 0 lae 1 n rd nt si (k p in 9. s in on a ) 3% rticip the p 1.0 lan the no a ). nt par 20 n W – a15 ta a c13. sh ti crg o c d ingt un 1% e ip att -ts a a do b n a fo n, te a ts se un ,D d C is : this b >or $100,000–$200,000 rowing privilege. 10% At year9% -end 20 10% 15, 18 9% percent 10% of those 11%eligib 11% le for loa 10%ns ha 11% d 401(10% k) plan loa 10%ns out 10% standing 10% at yea40 r-end Of w 2015hic , ch o: tar mp 50s get- aredate funds d with 44 are peran cent opt 17.3% a ion t year-end 536 2007 (Fi7.9% gure 31)3, . 371,140 74.9% $249,169,297,919 PlanN -s ote: peCcomponents ific info All rma do not tion add to o100 n lo per an cent pro because vision of9.7% s roundi is a ng v.ailable for the majorit 8.3% y of the plans in the sam 82.1% ple (including virtually all of had account balances that were low Exposure to Equities Increased A supp er or tha ted by n $73,3 cont57 rib, uttihe ons si aze nd g of rant the s. avermong 401(k) age account balance. In fac t, 41.3 percent of until 1981. Ratio of 401(k) Plan (mid-point Accou ) nt Balance to Salary, For example, 1 percent of p Few art 401(k) Plan ic ipa 401(k) Participants Had Percentage nts in sm Aacco ll p of la un ns Eligible t (Balances 100 p401(k) Outstanding articipa Greater Than n Plan Participants ts or fe 401(k) Loans; wer) $100,000, were offered company stock as an b All a la n c e.d 20 50.5% fun 14d. s, c Nat om iona 3.2% pal rC eom d wp 2.3% iteh 53 nsat ion Su perc2.1% ent rv e of y: rE ec m e 1.6% p nt loy hiere e sB in t ene 1.5% he fits in t ir 40s, a he 1.6% nd Unit 50 ed p St e1.2% racte ent s, of Marre cc 1.2% h 2014 ent hir. eW s in a 1.4% sh the ington, D ir 6033.6% s in C : 5 40s 40.1% 12.9% 47.0% The Use first of ca 1, Ratio of 401(k) tte 001–5, he gor Int y000 e isr ne the t, b 20 ase 16 Plan A .” gr oup IC 36. I ccou , Re 4% wsea hicn h cons rc t h P Balance to Salary 18.e 6% r is spe ts of ctiv pe la 22 ns 4.5% , tha no. t for Participants offe 6 (Oc r5. ne t9% ob ite he r)r . c Aom v 2.a 8% ila pin a bn le Their 60s, by y a st to w c 11. k w 4% nor w.ic i.or GIC g Tenure s o /pd 11. r f/ 0% ot phe err 22 s- table- A b out t.he 20 $60, E 01 BRI 000 c. /I “C Cont I Dr aibut taba ion se B ................................ ehavior of 401(k) Pla................................ n Participants.” Invest................................................................ ment Company Institute Perspective 7, no. 4, . 8 Figur> e$200,000 8, PercP ent er C c A h e g ant nge e a Composition 5% ge in Tot ofa 5% 4 l Re 01t(ur k 5% of Selected 401(k) n I ) P nde lan P xe 4%s ................................ artic 5%ipant Plan 5% s W Ait c 5% hou coun ................................................................ t t Equ 5% Balance Categories ity 5% Fund 5% Bala4% nces 4% 4% .. 14 The Investment Compa 60s ny Institute (ICI) is the 16.7% leading association re 7.5% presenting regulated75.8% funds globally, including mutual RevenuE equit Sey rv , ic bond, e 1981) money, . and/or balanced funds, b tha 45 The a la t y nc e U. 9. 20 a e 4 S. r1 .d s, d in p 5 20 fu D e c E rc e nd 16 lu ow B p eRI a d nt bc n fr red . / a tm I o “ te C W f ta om e g IDC nt ha o dry r a g 46 tof p t. et a D la b L oe y n - a a e d se p b s C aa a or r rticip te fu s in 201 c, onsi ov Em ear s n p nts s 4 td e loy 4. B nt s 8 c in e ha p P ee e a th ng B c r rt c a eie e eir in u c ne d nt ip se fit th a of told s Se e ion in v a tes he e sr sc e tmen ur p uni t 40 ait arly tv 1( loc ic e A t li ipa k ra d se )tion m P n nof ini la t eu s t n o s40 s G p f ter a the nd a 1( te t y ion ( k ne ir t)o ea a p rha c a la Se c tr- e o n p vp un ? en e t C e a la t d h m rb rta 2 g ia b c nge e la e ip 0 rrn 1 a )a c . s in nt 5 c eA .c ss, 1 v ount A in a 40 tila 2016 y 81( e bp b a le k e a r) - r la a e a cP n t e nd nd la nt ce n 5. 20 s, a of A 6c 1 p c p s 5ou la sets e , rc n 20 nt s, a e nt in t pe nrd he c ent (Figure 47). As in previous years, loan activity varies with age, tenure, account balance, and salary. Of those Figure 35, Many Recently Hired 401(k) Plan Participants Hold Balanced Funds ......................................................... 35 p the ar tsic m ipa allnt pla s h nsa)d . S ao cme coun pla t ns ba lw anc ithou es of t this less Participants Betw info tha rma n $ by tion 10 Participant ,000 are c , lw ashil sifi een 2007 and 2015 ee d 19 A g a.3 s e ha p and evring ceT nt e a nure loa of p n ap rro ticvip isa ion nt sif ha andy a pc acrticip ounta nt balin anc the es g pla re n aha tes r 50s Loans T With Percentage of Account Balance Invested in Non–Target-date Balanced Funds 401(k) by ended to 38.1% Participant Plan Be Loans, Small, Age by and 13.0% Selected Plan Tenure Size, 2015 Years 48.8% >5,000 23.7% 38.6% 15.5% 5.9% 5.5% 2.8% 12.1% 13.8% inv 2015 est U ( .m S. Fie g nt D ue r e op p a 39 trion, tm ). e Cnt w on hil of ce ent L 51 arb a or tpee , drB ctur e a bnt re g Percentage of Account Balance Invested in Non-Target-Date Balan a e of u o t-d pa f L atre ta ic b fun ipa or d nt St us s in p ate ist riacla ng s. A ns ed v w a fr it ila om h mor ble 54 ae t p teha rcn 5,0 ent of 00 re p ca ernt tic hir ipaent s in t ced Funds s we he reir offe 20s hold red com ingp m any or e Salary Range 06.pdf All 14.7% 8.2% 77.0% v Re alue cor d fun s w de s. Fo re ernc tyr-Percentage y one pte d p e bre cfo ent re of participants w of incplus artio icn in ipant the s in t dia th he taaccount b 20 ase 15t o EB cRI balances onc /Ie Ca Il t 4he 01in specified ranges, 2015 (ide k) d nt ait ta yb of ase em wpeloy re e in t rs a he nd se ep m la pns loy , e w ehic s, b h ut were and and EBRI com Iss pany ue sB toc rie kf,, and no. GI 23 Cs 8 ( and/ Octo ob r er). Available at www.ici.org/pdf/per07-04.pdf and Percentage, 2015 a, b fu Young nd Dis s,20 t e reibu r xc 40 ha tion o 1( ng ke )- f P p tra W ala rdth e ins cd o H ipa , fu Pnt nd aa rs tsv i c w (e ip ETFs e a rE e nt qui m )s, a , uc clos ty nd h mor eE d A-s x esets pos e nd lik fu e bur nd ly y P s te ,o la ,a by n Size hol nd d un P e it ................................ q auit r inv tic ie es a sipa tme nd nt ntt o trus A hold ge ts (or high UITs ................................ T)c e onc in nthe ur ent e Unit r,a 2 tions e 0d1 S 5 ta in e tes q.................... ,uit and ies a simi t y la er ar- 8 c 4 dha 3 at a p ng B w b ea r a e w cse d la e w of n nt the .d a ct e rhe ol.g of e s, 20 a s m 40 a sov e ss or 1 t10 /e e e ( ak t ll– b s in t c )oon 20 sa c pa l/pd c 14 a tion e n a he nt .” f/ rs o E his Ia sets C f B te I the RI t d o R. / re ir a I ic The C sea m a cIo long t40 ntrib a rE c bh P 1( B le tRI he s.pd ution ke )/ r Id old spe Ca fI s t a e p d cb rr uring t oje iv a 40 se e 1( c22 t w 20 kis e , ) r 16 no. p uni ea inv ( rq t s5 a ie ue ce e ipa st nd H b en o e dld tc E a in t g B eus r n RI oup a a e r nd I g it ss s. A e inc ue S t-cd hra t lude B aytre e ie sa ss d ffun r, 2 -e no. 017) a d nd ts a 42 a 20 .p nd Ana r6 (Se ov 15 a ide , ly b63 z out p ing dt e p b m ha e y 2015 rb a c lfe e w rof nt )ide d . a 40 of Ata vv 1( a 40 ,a il Ut r k a 1 ie )b k ( tk le us y) of at Old p Age arteic r, ipa long nts in p er-tenur lans offe ed, 60s and ring highe loans r-, E inc t B he R om I Issu highe e pa e36.4% B rsttiri cp ipa ee fs r c n ie s a ts t nt a se er g ne id al s of t w o ith ha p in av 12.8% re t-i de cla ipa p rtg h e n etrs w va ac lua c itoun h o tion of u t tb st e aa la 50.8% m nding nc ploy e44.2% s, w e eloa be hic n b neh a fia t i la rse n s ue cim ess w a por nd t e ta rre n e t nds a m fo,ong r All Percentage of 401(k) participants by age of participant, 38.3% 15.9% Percentage, 5.8% 2015 5. year-end 2007 and year-end 2015 6% 2.8% 8.8% 13.4% an outs $20,000–40,000 tanding loan balanc 17% e. This 19% may Percentage un 18% derstate 18% the of participants nu 17% mber o21% f w pla ith ns account o 19% ffering balances 17% loans (o 17% r particip 17% ants e 16% ligible fo 14% r loans15% ) than $100,000 (Figure 10). The variation in account balances partly reflects the effects of participant age, tenure, Age Group >0–50 percent 42.4% >50–90 percent 7 >90 percent st 27 13ock as 400% an investment option in 2015 Per. cThu entage s, oft el o iga ibn le a 401 lyze (k) pa the rticipa pnts ot e wint th 2014 ia outs l e tan ff di e ng ct4 01( of kp ) lo la ans n size, the remaining panels of Figure than 9 ww 0 w p.b erls ce .g nt ov of /nt che s/e irb a s/ cb ce one unt fit b s/ a20 lanc 14 e/e s in t bb l00 arg 55 et.p -d daft . e funds to 4 3 percent of recently hired participants in their 60s. Figure 9, Snapshot of Year-End 401(k) Plan Account Balances ................................................................................ 15 generally ot her offe 100% sr table equit value y fun funds ds, bond funds, money funds, a 1, nd 202 balanced funds a 4,012, s inv 488 estment options $424, . 244, 513,390 cod L GICs o ew w d w so t aa w cre c.e oha un ins brti.or t ura b bot ag nc la h /pd nc ec ould c e f/ o sb mp a rmo ie b afs e ny ng p t r d p af/ this ro c10 kd e uc d 01 gro ts b ib. up y tha p r e d csea ta f n g ub ra c era he ente xrp s ove la e in ae 29 sr dp m e in cult ific tw iple ora pte o ys e o sa if b rrs. le e turn w D aa y ts oa :n ( pthe 1) ro v the inv ide ir e ds e te for mp d loy e ca ap e ch p ita r’s l 401( a orvte ic rk ipa the ) pn la tli n fe inc ha olude fs the only d as well as critical analyses of employee benefit c policies and proposals. EBRI Notes is serial fu end nds 20 o1 ff5 e Sour re com d ce: to p T abul a inv reat e dis ons w toit rs All frh ye om in EBR ju ar ris I/IC -ednd I P ictions ar20 ticipant 07 w . -o D For rld irect w 38.8% ed eid xa Ret e.m iICI rem ple ent s , e a P eb lk an out s Dat to a te h C nc rol e13.3% lo ect eura -q ion ua g Pr e roj ta e ect d rs h . e of renc 40e 1( to k) 47.9% hig pla h n p ethic artaic l ip sta ant nds in t ards,he pro ir mo 20te s ha d Fi Group gur> e$40,000–$60,000 36, Zero Many Re 1–10% cently 17% H >10–20% ired 16% 401(k >20–30% ) 16% Pla greater Per n P P c e entage ra 16% cren t >30–40% ithan cta ipa of g ac e n c $100,000 15% o ount ts H f P balanc aold >40–50% rtic 19% ie Ta pat inves an ry g ts ear-end e ted W t17% ->50–60% in D itho equities ate ut 2015 E B 15% a qu laitnc y >60–70% F eu d 16% n Fu dsnds15% >70–80% ................................ 13%>80–90% 12% >90–100% 13% ...... 37 p a A pnd la la bout n a n r Youn w O e w sC c sets w p h our g a a r.ic d rnge 2016 t k i.or iw c e ipa e e s in A rp g ee /pd re nt rhe s a p s in o f/ c ld rte c nd, poun e b td he r y 22 t tha p the d a -B05 a r tra t t e “on ic la a .p for b ip nd a c ly a e se fe nt , s a 9 r nd ................................ s in he e [p pld e rw e rc tsent w he te aw nt] rir g .e s e 50 o b tt- f r he s or d i.or DC a tae g c p 60 /pd tfun liav Figure s, n itf/ d y pw s. b a ................................ of r hil rticip ie Ap e ls fs 6 a o p 11 ratd k nt ic f/ now p ipa sE e tr B rn c RI a n a e tds in 401 nt _ es lif I d B of w _4 e ithi 40 c 26 y( n 1( ...................................................... c k .Se le ) the k ) p p fun lp ir ta16 la ns a dn a c.C s, t cof o os un he ns sets va ts is se r 2014 y ,t” - ing w fun K ae s.pd nd r Form si d e s a Ut ze he f.k s rus ld — e 5500 fr d b ae o y nd si m g Youn v ne erdy g t o 10 p maere titcing ipant the s in 30ir 0% in the com ir e 30 -rs, 4 epla 0s ce , m ore nt 50 s (F ne a ed igu s in r re 48 etir ). eIm n ea ndtd . it iFor on, p long artie cr ipa -tennur ts w ed it h fi parv te ic ip ora nt fes w e in t r yhe eair rs of 20s w tenu ith s re aor la rw ieit s h 20s Age Group 31.9% >0–50 percent Figure 43 >50–90 percent 6.7% >90 percent 61.5% sa belcaarus y, ec ont some ribut pla io nn b s ma eha y ha vio vre, o r 8% ollov ffered e L ra oa s f p nr laa om sn a pe loa o rctn, en he t ab r ge ut p of la no tn he s, a rp em articip ai ss nie ng t 4 a a 01 nt llo (k)ha c ac at d co ion, un tatk ba e w ln an ito chd eut ra aw loa als n. , loa It is n a likcetliy v it tha y, ta this nd eom mis ploy sion er is a $50,000 Choi, Jame Of w s J., Dhic avh id : tar La get- ibso date funds n, Brigitt e are C. an Ma opt dr ion ian, and Andrew Metrick. 2001. “Defined Contribution Pensions: Plan I 25 n a gd roup dition, plaa ns t y b ey a rinv -end est20 me 1n 5t, op 58t ions perc e ant nd of pla the n size. accou nt 846 balan 12% ces of recent 3,l091, y hir 846 ed participant$322, s in t134, heir 548, 20s 731 were Minor investment options are not shown; therefore, row percentages will not add to 100 percent. Percentages are dollar-weighted averages. 0 providing current information on a v 2008 ariety of employee benefit topics. EBRIef is a weekly c d re o ac ntra te ently > of $60,000–$80,000 ct. b b ir eteh, n e fr som tab li > w s 80 he hic per dh a 15% c( ent 74 n p ae grc e 13% > 60 egnt r to 8 oup o0 pe f 14% a is ll rc en 401( atssigne k 13% )- >ty 40 dp ; to 6 e d 12% a 0 pe ptla en r cof s en in thir 17% ee xi, s >fr te 20 om nc to 4 14% e 0 pe w in hi rc2014 c en h a 13% t w tee 1 nu rto 2 e 13% r e e 0 pe s r ta a rc b nge en li13% s the isd aa Ze sft si ro 11% eg r ne 1995 d; 11% out [tast bula andi 12% tion ng s of U.S. Gov 10e 0% rnment Accountability Office. 1997. “401(k) Pension Plans: Loan Provisions Enhance Participation but May Target-date Non-target-date Com pany Combination of m p20s ub orliec tun ha 350% d 89.7% n 80 ersta p nd ering ce 1.4% nt , a nd of tohe the 401(k) i0.9% rrw ac isce oun P ad articipants v t ab 0.7% nc ala e nc the es inv inte 0.4% Represent re esstte sd o f in e fu0.3% nd quit a Range s, ie the s a irt s 0.2% y he ao a re rf Job Tenures - ho end lders 20 0.2% , 15 dir, ec com tors p,0.2% a ar18% nd ed a w dit vh le ise 0.1% rs ss . ICI’s than ha m5.9% emb lf aetr s p la 2017 a rr gte ic re ipa cor poffe o b nt p crt os in e rra d a t ions th td he a iv 30s Asset Allocation Distribution of Recently Hired 401(k) Participant Account Balance t e ir “on tr o s 20 ifi sm ly s o e 20s d 8 a r ll b [ p p 3 or e 0s us rc tfolio t e ine (nt] Fig ss ur o h ef a s eDC — t 5, low aw u p 41.4% it tlom a h a n 10.4% ea p rv t ap ic a rticip a raie ne lly ty l) ar nt . e of b P sa a itnv la rra tic n e dc ip st eed a m s t nt w eo 7.5% ithi nt s in 401 6.6% b op n e th m tions or eir (e ka ) .foc c p cla ous un ns r ets d. e ” on p 82.1% Srimi einc sent la 52.0% om rly a ,e Ut w ov ide ke us r rta a im nd nge e . Youn of jg ob 201 2 b meor tw ee tehn $20,0 an 30 ye 90% 00 a ra s of nd $4 tenu 0,0r00 e w , e the re lm ess ed lik ian a elyc tco ou us nt e b the ala nc loa en p wa rov s $6,7 ision 64 in than o 20t15 he r( Fi pg ar ur tic eipa 16n ). ts. El Long ev er e-nt epnu err ce ed n t of s ma Re ll , la a t.sion U.S 2015 A sh tar.get ip . Go 1. N -of dat v 3 ae % t e E iona rnme fB und RIl t/ ynt pi C I 15.7% C cal om Ac I ly40 c p rebal o e1 un ns (ances kta a ) tb D ion Su ila iity tst a por b Offic a tr fol v se ie o e y tP o : 1997 la becom Ens mp te fo loy o less un te he e d focused tB Univ ha ene t mo on efit rse gr s in t re ow of th th and a he An ll 401 95 m Unit or e pf( e e ocused k rc d) e St P nt la a on t ns oef is, ncom ................................ 4 01( Ma e k as rc ) h 2015 itp appr lans oa tha ches . W t and a osh ffeir ngton, D .............. loans haC d: a 10 t Fi cont gur re ibut All 10ion , Distrib rates. This ution p oa f p 4e0 r1 e(xa k) m Plan ines Acc theo ru en la t tions Balan hip ceb s, by etweSi en a ze c ocf A oun cco t bu an latn Balan ces an ce d ................................ participants’ age, tenur ............ e, and 16 Rules, Participant Decisions, and round the up of Pat E h o Bf Le RI raes ste aRe 101, rch a si625 st nd i ancns ei.” g ht NsB , a ER Wor s 26, we136, ll a king s446 upda Pap tees on s r, no. ur 1, 86 v 917, e55 ys,284, s (D tudi e 271, ce esm ,397 lbiteig r)a. tion, Anothe >$80,000–$100,000 r 27 per10 ce0 ntor of few Age Group pa 14% er rticipant 12% s we 10 re 12% 1 in p to >0–50 percent 500 lans 11% that 11% offe 50 r G 1 I 14% to >50–90 percent Cs a 1,00 nd 0 12% other s 11% ta 1,0 ble 01 -v12% a to >90 percent lu5, e 000 fun 11% ds as a 10% n in>5, vest 10% 000 ment op 10% tion, inv e st e d . 20 in b 02a. la “n Cc ae n 401( d fund ks, c ) Ac om cup maul read tion wits G h 54 ene preartcee n Signif t in 201 ican 2, 42 t Inc om perec e for n Age t F in 200 G ut roup ure9, 24 Retir e pe es? rc” e nt Inv in 200 estme 6, nt a C nd om ap ba out ny publicati Con ompas ny funds* as balanced funds stock as company stock and/or Figure 37, Many Recently Hired 401(k) Participants Hold High Concentrations in Balanced Funds .............................. 38 H loa U.S old n b . A e De ff n, ae p la c a Sa nc trtm I re n a; e h, cnt om fun Ja oe d c f s in t k Se L a Va b co ur 30s nD he r it For y e p rfo h a m e rrti, 5500 iS cL ipa om uis n e d t.” A a ’s inv ta lons L e fo tt o, e r es2014] rt 13.4% S m Re te ev p nt e or ),n B p to, or r G a(tss 2) foli AO , the /H os; a and E e H mp A nd SnnM -98 loy 8.7% ass -e a 5 (O e e rie to v nly P c aino. tlob ue ree s a c20 r e)ntly . t14 tW ribut . a joi “ sh 4 77.9% ne e 01 in dd g (t t k o th on, ) t eP hose p la D la n As C n : fun (U. w set A he S. ds. A the Gllo ov rn a ce oar n tc nm ion, c his oun e nt or t her 30s 88.0% 40s 2.6% Percentage 1.8% of active 401(k) a 1.3% 41.3% 0.6% plan participants, 0.5% 6.6%b 0.4% y years of tenu 0.2% re, 52.1% 2015 0.2% 0.2% 4.3% y ma eana r-e gnd e to passes 20 tal07 ats he . sOld e tar tsget e or f dat to Company Stock in 401(k) Plans With Company Stock, by Participant Age 40 U.S e 1 of.( tk $19. he ) fp und, a 6 rt tril w ic hiipa li ch on is nt usual in s w the lye ir ncl e Unit uded a lit ed it n le S the ta le fte und’ ss s ,s lik s nam e erv ly e. ing to mo hav re e tha sucn h hig 95 mil h c lionc on U.S ent.r a stha ions reho in e ldeq rs uit , a ie nd s a U.S t y. ea r $5. - 6 17% t re ep nur orte e d e 90 xpe tha %0.4% t rie “on ncly e s. I 11 n 201 [perce 5, n t] 39 o f pDC ercp elnt an of patrticip he pa ants rtic ip tra ad nt es in t d in the he ird a ac ta cb oun ase ts” ha in d 2011, five or d ofe ww n efro r y m ea16 rs of perc teenu nt rin e a 2008 nd , p pa ar rt tiic cipa ipant nts in s w Of w itth a he hic ir c h c20 : tar oun s e get- t a bra date funds ni lang nce m s of or lege is are le tla ha ss tio an n $ tnha opt a 80 n $ n ion d ,000 r 10eg ,000 u to latio $1 hn00 a da ,000 ffe loa cns t in h g a ou em d ta st p m alnding oeydee b 50s ian a . en cef coitun ptl an basla . n Th ce e of EB $5R0,34 I Dat 8, w abohil ok on e those 14 Distri >$100,000 bution of Equi20s t14% y F und 10% Alloc10% ations 26.1% 9% and P41 a 9% rt 65, ic545 ip 11% ant 11.8% Ex 10% posure 19, 9% 370, to 402 Equ 9%i62.2% ties9% 1,402, 7% 238,303, 7% 406 8% le saala st rU. y o.ne S. D pla ep na p ra tm rticip enta of nt L w aith bora, n Bo ur uts ea ta u o ndf L inga lo bor an. St atistics. Available at Age and c Tenure s of toc 40 k 1( ank d/ )or Plan Part oic nlip y a equ ntsit y ................................................................ as only equity only equity targ ................................ et-date funds,* and/or ....... 10 in adC daitm ion to th bridg 250% e, eMA ba: se Naop tion tions al B . ur eau of EconomicN Re umber searc of h. plan Avail participants able at www 8.nber.org/papers/w8655 7 p Othe eI rns cer t nt 300% it sta u at 80 b m ele % ong P -v ea rspe lu tha e c fu tt iv nd ae gs e8, no. inc group lud e 3 , in sy anth nd 1998 e Etic B (RI Fi GICs gIur ssu ,e w e40 hic B)r.h iefc , At ono. ns yis et 25 ao r-f 1 (No ea nd po20 rtfo ve1 m 5 lib o , e a orm f ). fix oA ng e vd a-rila inc ecbe o le nt me a ly t shir w ec w e uriti w d .ic p ea i.or sr t “w icgipa ra /pd pnt pf/ es in p d” e rw 08 tith he -03 ir a .pdf GICs are guaranteed 40s investment contracts. 14.4% 8.2% 60s 77.4% 50s 43.2% 7.1% 20.6 49.7% b o40s w ala n n ocr ethro for 85.5% ug ea h ch p auto a 3.3% ma rtictic ipae nt nr 2.5% o is t llme hent) su . m In 1.8% of eith the er p ea ve rt 0.9% nt, icipa jon b tt’s e nu ass 0.6% ree t w s in ould a ll funds. no 0.5% t accura Pte la 0.3% ly n b rea fla lec nc t a ec s a 0.2% tua re l 401( const k)0.2% r u pc la te n d as t4.2% he A A ?c c c count ount A m a aB b jo a ili lra tit y n y cOffi e of ne s, a cend . w Av L o a oa ila r r n Ac bec le e taiv n t iPercentage of recently hired participants in plans t h w tyw in 201 ires w.g in ao.g 3.” ves ov IC ted /a I rRe c t hisea h 21% veir 4 e/1 rc99 h P 08/ 21% 1 e(k he rspe ) a 98c0 t siv 05 se ets .p 20 d in f, no. ba10 lan , 21% c aed nd f Eu Bn RI d sI,ss in ue c lu Br d ie in f, gno. tar40 get 8 - $40,000 25.7 tril end liS oour 20 n in c1 e: 5a Tabulations s cs om etsp in a r fre om od the Ew Br Rit Ijuris /h ye ICI Pad ra tiicc ripant- -tions end DE ir.20 ec m ICI ted p 07 lo R c: eyee B a tirrrie 2 e1 m ent s pen e o Pref ut lan ce it D it nt sa s ta is int of C a ollec e s 40 rta na tion 1( tis tional P ktic r) ojec a pl r la t. w n p efoerk ra e n rthro tcic e 21% ip w ug aor nt h ks in t on e ICI Glo he mpl b ira oy l, 60s ew e ith be hane o dff f im ic t pr e or sog ein trha a Lm on 80 nd s aond w n, p H eor r ocng k e nt 5 ma pk eing rce nt it d a ha t tha d m t tim oree t “th ha 30s n 3 e low 0 ye est arle s of vel o te bnur serv ee 33.5% (dFi ”Median g su inc ree 6) the T . enure: 8 Years T y he be g m ae n dtr ia 13.3% an te cking nur thee adta tta he 21% in cur 199 r53.2% e9. nt Ao em n p 2016 loyerfo w un as e d tha ight t 14 ye a pr es in rcent e Figur arnin eg 11 m, oAg re e tha Co n $ bm ala p 10 nc o0,00 si ed tio fun 0 ha n o dsf Sel d a ect me inv d ed 4 ia esn tm 0 aent 1 cc (k) ount Plan ba Ac ila nv nes co cet u m of n en t $4 tBal 0,37 anc 8. A ie nv Ca es mte ong tmg en 30. o tlong ries 1 e ................................ nr o-n te -tnur arge etd -d p aa ter tb ic aipa lanc ne ................. ts in t d fund he sir 60 16 s Plans Partic ipants Assets www.b Because ls.gov few /n pl cans s/efb als l i/be nto thi ne s cfit ats/ egor 20 y,15 these /eb per bl00 cent57 ages .pm d P ay ferc . be ent heav age ily inf ofluenced by a Pferc ew out ent liage ers. of 80% 50s 14.7% 7.4% 77.8% 35.1 50sa,b 20% >20 Years Figure 38, Many Re 60scently Hired 401(k) Pa 42.2% rticipants Hold High 29% Conc 8.7% entrations in Target-Dat 49.1% e Funds .......................... 40 g 20s P Yua a er at, ra ria - ctE nte nd ipa and rge n w e t 20 t(w s in 40 -td y w 15 p a.e ic t eSn a b ll fun r1( y i. a or p k bd sh ) yg s a p /pd a ot la n c ns c in of f/ ou s b ura m 40 rnt ie a1( e fs nc yd k p hold e )for d c f/ Poa 11 mp 8 r et3 q 02 ic a uit p ip ny ib. ea ie r c nt p o s t e r d s’ nt fa hr A b of oug c acntount k he h a ) to ir v b B pa a a ro rla la ie vn n id tc c ye e e of d sb e ................................ fun op netfit d ion apss s inc ay em ts, or e luding nts 48 ac c ep o qrd euit r................................ ing cy e nt fun to of the ds, c the po ila rm n a p c ac a toun n byo o st tk o b .......... v c aa k la lue , n ac.nd e s 10 50sNote: The 84.7% tenure variable 3.5% is generally year 2.7% s working at c 2.1% urrent employer1.1% , and thus may ov 0.8% erstate years of 0.6% participation in 0.3% the 401(k) plan. 0.3% 0.2% 3.8% 45 fo offering company stock as an investment option, rce-related issues. 2015 su pam rticip (of De aa d c tion. ll p e am te fu a b re tic r)n ip . d A as v nt .a il For ba 40s a bl a le en xa a ce tm s in t w pw lew , he .ic at i.or p ye laa g n. r/pd -e Pnd la 33.9% f/n size p20 er15 20, -is 1 70 0.p est pd im efr c a ae tnd e nd t of 13.5% as t re he ce nt sulm y hir of ea dc tpiv ae rt 52.6% ic pa ip ra tint cipa s he nts in ld ba the lanc pe la dn a fun nd, ds in as Average Loan Balances 43.7 43.5 of Kon the g, ir a nd ac c W 70 ou a %snt hing bato lan, nc DC. es in vested in e 19% quities at year-end 2015, compared with 30 percent of 40 60s 1(k) plan participants in For A Plans a g I nves e c 250% Not o G mp re: tou m “le Funds” ent pte O tim pt incl ions eude se ri O me f ut fs ered ual o f funds, the by P bank p lan ercce olnta lectig ve e tro ust f s e,li lig fe ib insur le 401( ance plans separ k) pat art e account icipant s,s and part with any icio pant pool utsed t saind nvest ing m ent 401( pr Poduc erc k) ent loa t pri age m ns a ria of lyn as d loa sets n amounts R 20 of e15 pla articip , tio the nship a snts am tra e of a ds in 20 e Ag d in e 60s th a 14 e nir .d aTenu ccounts re in to 2015. 401( 13.9% Furthe k) Prmo lan 46. re A 7,c Cho cou i n et t6.7% aBa l. 2001 lances foun d that 479.4% 01(k) participants 47. ra 5rely made w Cong ith $20,0 ressio0 na 0 l B to 48.udg $4 5 0,0 et 00 Offi in s ce.a 20 lar16 y in 20 a. CB15 O’, s 20 the1 m 6 e Ld ong ian -Te acc rm ount Pr oje bac latn ions ce w fo ars $60 Socia ,5 l Se 85. cur For it ylong : Ade drit -ion tenur al I enfo d pram rta ictipa ionn ts in Alternatively, 17 percent of participants were in plans that offer company stoc 40sk but no stable-value products, while the All 38.9% 6.8% >10–20 Years 54.3% Distribution of Plans, Participants, and Assets by Plan Size 18% 18% 54.9 18% 18% 18% b U. ov 60s aS. e larn aIc ll. The nt ed e84.8% r fun na l Re p da s. This ttveernue n o 3.2% sec f ta Se 50s trrion g ve ict 2.6% e - foc . da 19 us te81 eas fi nd . “r N 2.1% s non ot t on ic– et 32.8% ta of he rgP einv r 1.1% top -dea ose st te ing d b aRule p laa 0.8% n tt ce e Ma rd n o 13.5% fun king, f 40 d 0.6% us 1( Ce e kr )tv ap ain r la ie n p C da 0.3% s w ah o r itth p ic 53.6% ripa D ae rnt tfe ic 0.3% s w ripa red it n h r tA a re r ga spe enge .0.2% ct m te ont es Und quit 3.8% y er 70% 16.4 invested in the security indicated. >30 Years suc Fa h, cd tor oe 20s s Tha s not Sour 200% ce: t ne A Tf abul c fe ec ss at t i90 ons a 40 rily .3 1( fr% om k re ) EBR pP 21% ra er Isent /t IC ic I ip Par a the tnt ic74 ipant s’ Percentage of Account Balance Invested in Company Stock tot .2 A -% D c ac il nu rect ount ed m R b B ete a irr em l aof n ent c 8 e e .3 Pl m san % ................................ ploy Data ee Cs a ollect t ion the Pr 3 .oj sponso 2ect %. ................................ ring firm. 4.6% ................... 10 Figur w e Percentage w 12 w the .e , Te ir b r40 i.or nur 1g of e (k /pd C ) plans o pm f/ lab p n a rosit iec fs cip on oun df/ of tEs. B B Se RIle a _la c IB tn e _4 cde 08 d 40 fun _D 1(ke d)c s c 1 P4.40 la om n p A1rc( is ckoun e )d -upd 41 t B ap atla e er.p nc ce de nt f . C of ate the gor a iecsc ................................ ount balances of recent ................. ly hired 18 Equity, bond, money, All and/or balanced funds 12.9% 75.3% 7.9% 41.0% 79.2% 40s 33.4% t 15 heir 60s at year-end 2007, although a lower share held no equities. a c ha s a ng p e e s rc . a 2016 efte nta rg . the eN Source: Tabulations from EBRI/ICI Participant-Directed Retireme oa f init tiona the ia lre l pC m oom int aini 17% p ong e f ns e nro 401( ation Su llme k) p nt. lar n v (e For ayc: co ho Eun m us p t loy e bho ale a ld e nc s B e urve e ,nt Plan Data Collection Project. ne sefit y e re H s in t o sld ults ehe n fro e Unit t m al. 30 fal e2013. d sl 2016 Sta tes, re fle Ma cr ting ch 201 hous 6. eho W 23a ldsh s’ is ngton, D entiment C: their 60s earning more than $100,000, the median account balance was $376,091. 28 A r Fi em g m ur ong a (e in D e ing 39 p ce a , r m 15 A tib s c set A ipa epre ). n rct W e llo s w nt ac sh a it of th o ingt ion D pa uon, rttsiis t ca t ipa D rnding ibu Cn : ttC s w ion o ong 40 e1 rrf 401 e e ( k sin )s iona lo p(la a kns )ns l B P la a tudg h tn Ac a the te off t c e Offi ount e nd recd of e B . ba 20 A ot la v15 h com nc aila , e b tthe le o p B a a aa ny tv le w a rnc s w atg oc w ee d .c k unpa Fu bao.g nnds d ov id stA a /s bb m a it le la ong e-n s/ vca d e lue e Re w fac a ul p e s $7,9 r t nt od /flile yu H c s8 t/1 is in 2, re 14 d th- S o me . re 2003. c ord k“e40 ep1( erk s) s P up lap n lyA inss g edta A talloc we a 69. re tion, 9 unaA bc le c ount to pro Bv aildaenc ce os, mpale nd te L aoa sse n A t ac llt oiv ca ittion y in 2 de00 tai2.” l on Inv certa estin m e pn oo t le C 50s d om as psa eny t c lasses Age and account b alan60s ce are p ositivae ly corr e32.1% lated among participa 12.8% nts covered by the 2 55.1% 015 da43% tabase. Examination of 6All Age 86.3% 60% 2.9% 2.2% 1.7% 0.8% 0.6% 0.5% 0.3% 0.2% 0.2% 4.4% It is p30s o 200% s$30, sible 000 tha a 16% t the87 se.8 o% lder, longC eont r-teac 68 nu t .5 re E% B dR wI P orkuebl rsic 16% aa Fitcig co7 umu ns u .7 r,e % ( 5 la 2102) ted 65 define 9-067 d 30; c.o 9 f n %a trib x publ utionic (aDC) tion por lade n ras7 s t .s7o e% ( ts 2(02) e.g .,77 in5 -a 63 p12. rof it- fundE s. The mploy a ess e e Ptla a ns lloc .” a Fe 75. tion o 3deraf p l Re 16% arg tiis cipa ter n46 ts w , no. ithout 217 (No equitvye m fun be drs is 10 )e: xplored 55544– ne 555 xt49 , b. e cause 401(k) participants holding no The 2015 E Of w BRI/IC hic I h 40 : tar 1(get- k) d date funds atabase c are ontan ains opt iion nformation on 101,62 2015 5 401(k) plans with $1.9 trillion in assets and This update exte A target-date fund typically rebalances its portfolio to become nds previous finding >s 20–30 from Years the project for 48. 1 less focused on growth and more focused on income as it 996 8% through 2015.31. For 3% 18.y 1 ear-end 2014 result 24. s,8% see Holden et al. 401(k) participants at year-end 2015. A significant subset of tha 0–2 t b Years al20 an sced fund category is invested in target- Definit 60 ion o % f 401(k) Plan Account Balance .......................................................................................................... 13 U.S. Department of Labor, Bureau of Labor Statistics. Available at toward and Group confideZero nce in All 401( 1–10% k) pla11–20% ns, see H21–30% old 31.0% en, Sc31–40% hraFi ssg , a und r41–50% e 15% Bog 2612.9% dan 51–60% 2017. 33.9 ) 61–70% 56.1% 71–80% 81–90% 91–100% comp cong ared r ew ss it-h $7,78 2015-20 0 in 16/r te he por ye ts/ ar52 -end 29820 -so 14 cia dla secu taba rit se yc(hFi ag rtur boo e 49 k.p )d . fThe median loan balance outstanding was $4,359 at a Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project ddition to th 40s Partic eipa banse ts, b opy tions Part . ic ipanS t u Abg se cr 62 ................................................................ ip.1 tio % ns to EBRI Issu 9.0 e B %riefs are include 5.d a 3%s part of ................................ EBRI membe 8r .s 1hi %p, or a ................ s part of a 41 fo Com r oI ne pns a rt o ing it r umo te re re P ce e approaches and passes the target date of the fund, which is usu o n rspe f tly the hi ct ir iv 84 re ce d li .4 e 9, no. % p nts ar.t ic Th ip 5e , a L nt a fina nd o s in 2 an l E EB s F BRI R 01 I/ r o 5 I ICI s m w su 401( it 401( eh si Brk k) ie m )5% f il P d , aa no. lran t a a ally included in the fund’s name. b g s a 26 e T s e g 1 (Se en rinc oup dlud ed p s in 199 te e tsm o o B b nly ee S r8 a ) p . la m Aln so illus v al s a il lfo ab r le w tr hic a att e h w s t a w t h w le a.ic a t sa i.or t ss 90 e g t/pd p a elloc rc f/ ep nt ae tr ion o 09 f a -tllo plan the age composition o f acc ount b alance s finds that 54 percent of participants with account balances of less than 46 100 Age Group >0–50 percent >50–90 percent >90 percent H e W sha q old it uit ring hin e yn, E fun tp he quit Sa lad n) ry y s m a ,e h, b bond, ae r- a fo Ja y e rnd c hold e m k the oney, Va 20 e 15 nD introd q and/ uit e ErB h ie RI uc or es in t i, /I tion balanc LC uis Ihe o d f A a ed for 401( tlons afb unds m ao, k se, of ) ,a p c nd it la o n m isC fe p p ra a a os n ture ig y si C b st s o le oc .p H e tk o o la w or lin nd. e v k thr e 20 indiv r,oug s 08 uc idua h b . h “40 DC alls a 1( a p nk la c c)e rn os P d a la s p fun rr n A ang la dss s. Fina ns ee me ta c A nt rllo o ll sss y c g , a et a tne he ion, m ra a ov ll jA o ye 30 c rr d ict a id ou yll inv of no ntt te he pse t r m mit ent Figure 13, 401(k) Plan A 14% ccount Balances Increase With P Figure articipa 23. 3n 8t A 14% ge and Tenure ................................ 60s ................. 18 a Dis 2016. 26.1 mi t ri O R be lli u srd on ults tiope n fo ars/ rof r tic e ipa a 40 rl ie nt 1( r s ( y k) eFi a rs P g ur a art re e icipa 1) av. aA ila s in t nt ble s ’ in he Ba e a 40 lanc rli1( er ke i) s d suni ue Fu sv e o nd r f se ICI Al atR lo la ec sre a ga t erc io , h m ns P ost e b rs 14% y of p eAg c the tive e p (la wns ww in t .ici.he org d/a re ta se ba arc se h/apre er s sm pea ctiv ll: e) The percentage of 401(k) participants with 401(k) loans outstanding across all participants both with and without 401(k) Year-d Eand 20 te 50 % fun b ds. A 15t S ye napshot ar-end 201 5o , f 3440 pe1(k rcent) of Ptar het a icipant ccount ba sla ’ nA ce cs of count recent B lya hir lances ed part i cipants were invested in The ratio of 20s partic 75.6% ipant acc4.2% ount bala 3.5% nce to s3.6% alary tends 2.1% to be 1.4% posit 2009 ively 1.4% correlat 0.6% ed w >it 5–10 h a 0.4% g Ye ear asnd 0.2% tenure. 7.0% Participants in The analysis includes the 26.1 million participants in the year-end 2015 EBRI/ICI 401(k) database. 50s b 57.1% 8.7% 6.8% 8.9% Size w of w40 w 150% .b 1( 15 ls k 0% .g ) P ov The analysis includes the 3.3 million recently hired particip la/n n Ac cs/81 c eoun b.4 s/ % b t eBne ala fit ns/ c$19 e20 s ................................................................ 9 a 16/e nnb ua bll00 subs 59c.p ript dfi o n t ants (those with two or fewer years of tenure) holding balanced o EBRI Notes and EBRI Is................................ sue Briefs. Change of funds in A.................... ddress: EBRI, 13 2014A Form sse Perc 5500 tent Allo age cat of eligible ion Di par str tic ib ipant utis o,n by o par f 401( ticipant k) P age, ar t 2015 icipa 30.n 4 t year-end 5020 % 15, compar 20s ed with $4,239 in 13% the 9.0% year-end 2014 datab 8.2% ase. The ratio of 13% the 82.8% loan outstanding to the U. b as as S. la en ts 05 Joint c e c .p o d and uld d fun fC a om GI b nd d e Cs s t m id w e it e and/ w nde t nt ew e ifie .e or d on d b ot t.ro her i.or Ta be xg s a thighe /pd able tion. f/value b r20 r in 201 ie06 fs funds p . d Te f/ 5 09 cthni h03 an in cib. al Ex p19 df p 98 la na , rtis ion o ing fr f o Hm .R. 9 4, th perce e nt “P e of ns the ion P acrcot ount ection bala An ctc e of s of 2006 rec ”e a ns tly $10,000 were in their 20s or 30s (Figure 11). Similarly, 61 22. 8% perc20% ent of particip 26. ant 5% s with account bala 26. nc9% es greater than b 23.0 34 r ee mp cor loy dkee ee c po entrib rs. Thi ution s im s a pn ro dv o efs t ten he w ide erent de ifi sc ig ane tion o d tof ba ec t siv up ep p leame rtic nta ipa l nt tos oa the nd r re em su plloy tede rin t pla hns e .r e Pc ala rtici ssip fiacnts ation o ’ acco f 1.1 mil unt balalinon ces in eqBui atla iens a ces, a cross nd aL ll 401 oan Ac (k)t iv pila tyn p in 2007 articip.” a nt Inv s is es tpm reesent nt Ce om d. p any 29% Institute Research Perspective 14, no. 3, and EBRI 59 Row percentages may not add to 100 percent because of rounding. percent of the planAge Group s have 25 401(k) Pl or fewer >0–50 percent an Characteri participa 9% nts, and s ti 24 cs, >50–90 percent pe by rce Pl nt an A have ssets, 26 17. to 2 1 2015 00 >90 percent participants (Figure 2). I37 n I andivi nd EB dR u 60s I al 401( Is 30s sue 2015, the 2.9 million recently hired participants holding targ k Bri ) 72.6% e pfa ( rt w ic w ipa w.n e 6.1% t bs’ ri.o ass rge /p t4.6% ub alloc lic 51 aa tions .0 tion % 4.5% 12% /tib o ).b ala 2.3% nce et-date funds in 2015; and the 0.5 million recently hired part 8 d.6 fun %1.6% ds varied 1.4% wide 7.4% ly 0.6% around a0.4% n a 12% verag0.3% e icipants 8 .of 1%26 p5.7% ercent at pla Fo n r loa the n ta a a rc g gce e et s - ds d 19. is a w t 1trib e as ution fun simi 75 ds. .1 la or % f in 40 e 1( arl k)ie 110 p r la ayn e0 13t ap rs a.rtici h S For pt.a e 28. nts N xa 4W mp a , nS ld eui ,a tin e s s8 e 2014, 78 ts , W at y this ae shi ar ng me -etnd on, as ur 2015, DeC w , 20 a sse 00 17 e 5 Fi -p 4 ge 05 ur rc1, ee ( nt; 5.202 fro ) 6 m 59 2010 -0670; thro fax ug num h 2013, ber, their 50s and 60s—having had more time to accumulate assets—tended to have higher ratios, while those 12%in their 20s Ta Fi g r ur g e e t- 40 . d20 a, te A 16 v fun e br. a d C g s w B eO’ Aes 201 ss ree ta v A 6 a ll il oc Laong b ale tion o -in 65 Terf 401 m p Pe rr oje (cke)nt c P tions la of n t A he fo cc r40 ou So 1 nt c(ia k s, b )l Se py la cP nua s in t rritty ic: ipa he Supp nt y eA le ag rm - ee eA nd nt maon 20 l D 15 ga Re t a d a c (t e D ant e bca ly ese m Hb i(rFi e erd g ) . u 24. 40 r W 1e1( a22 sh k))ing .Pla tThese on n , $20,000 30s 12.5% 9.0% 78.4% Of which: tar 401( get- k) date funds A Loan ccas ou a nt are Ba an laopt nc ion e to Equity Funds, by Participant Age c remaining account balance inc 27% reased slightly, from 11 pe 14. rc3% ent at year-end 20 18. 14 1% to 12 percent at ye 18. ar6% -end 2015 Re la Sub 80 tionsh 40s % ip c of ri Ap get i ao nd ns Tenur e to 401(k) Plan Account Balances ................................................................ 11% ........ 13 hir Fi Fac ge ur d t Pe ors a p ss 14 are t, Tha id c40 ipa by 1( tn holding non-target-date balanced funds in 2015. tk t Af he s in 19 ) P f H e lac ouse n A t 98 40 cc on t1( ou o 4 nt k) July 1 B p P a e 28 a la rrt cn , ec ici 20 nt es L 06 pant in 201 e , ss and s T 5 ’ ha Ac a (Fi s C n $1 c gou u onsi re 0,0 nt 4 d0) 00 eBa r. e , d The lanc b y b y P sh a te he rs a tir c e Se ipa of na na tt c e Ac g on ount e a And ugust baT la enc nur 3, e s in e 20 ................................ 06 ve. st JC ed X -in e 38-q 06 uit (yA ugus fund .... s t 3) 19 . $100,000 were in their 50s or 60s. The positive correlat 33. io 4n between age and account balance is expected because A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approac T40 otal % Plan As sets 20s Total Plans20.4% To tal Par ticipants 13.3% Total Assets* 66.3% 40s Average hes and passes the target date o Account Balance f tha part tiI p css ipa reue d 100% nt a te B 40s a r the c iecfou , 401( no. nt 73.3% s 32 kt) ha 4 (D ptla w n5.9% e e ac rre e e m 19. m no b 9ult e t (rinc 20 4.8% iple ). 2) lud A 77 vaa e cila d c5 ount in b - 3.9% 63 le this 12 a s ow t; e a wna w ne -2.2% m lw ya d s .ic il: is b i.o ,y w ssi ubs rhic g ngle 1.5% /pd c h rifo pt f/ indiv ic p ous e ns re 1.4% 14 @ idua s e- o br 03 n lis. This .401( .p ord g0.6% f ka )nd M b pa reo lam cnc be e 0.4% d erur s ahe mo ip I aun llow n 0.3% tsfor s E . mat BRI ion 5.6% a: nd Inq IC uir I ie to s All 84.3% 63.1% 8.6% 5.2% 38 7.4% y cont earr -a est nd , only 2015 2 ( F pigur erceent 20 of ). tF hor e pela xa ns m ha plev, e39 m o preer cte ha ntn 2, of 50 pa0 p rticipa artin ctipa s he na, tld s. b no >b 2–5 alaY near ces d funds, while 40 percent of 16 U. 18S. peD rceepnt; art in m e 2009, nt of 19 LaP b 40s p er or e crc ent , E eage nt; mp of loy in Rem 2008, ee aining Be 16 ne fit pe s Se 14.2% rcent; cur in ity200 Ad7, m ini 16s tpre arc t8.1% ion. ent;2 a 01 nd2 a in . 2006, Privat e 15 P 77.7% e pe ns rcion P ent. lan Bulletin, Abstract of c 17.6 had D the C: low Cong est re rss atio ios ( nal B Fig udg uree 17 t Offi ). Icn a e. d Ad vit aila ion, blefor at aw nw y w giv .ce bn a o.gg ov e /s and ites/ tednur efae ul c t/f om ilebsina /114 tion, th- ctong he rraetss io -of 2015 acc -ount balance plans offe Equit Pr ae r yd t,i c bond, tipa argne t m ts Wi -oney, datte h Tw and/ fund or o s t or balanc o Fe 74 w ed pe erf unds rY ce ea P nt ,rer s of of cent the Te age nur par of e ti c ................................ par ipatnt icis in panttshe , d 2015 a 30s tabase. ....................................................... Among participants who were 42 Th e a.v 20 era 04 gea . a Row percentages may not add to 100 percent because of rounding c “c 40 oun 1(t k) b a Plla anc n e A ss is e ct a lc Aula lloc ta ed tion, for the Acc ount 19.4 m Ba illliaonc n e . 401( s, ak nd ) pL laoa n n A particip ctivia ty nt in 2 s who 00 3.” had I nv acc eo sun tmt eb na tla Cnc om esp a any t b oth the fund, which is usually included in the fund’s name. 7 9.7 (Figures 47 and 7.050). In 30s addition, as in previou 27.8% s years, variation ar 13.9% ound 22. this 7 average te 58.3% nds to correspond with age (the d 35ecre W aa sed $0- shingt $250 ove on, r the DC s: aU. me S. pJoint eriod , Cfr om om m 25,421 i65 tte e p e on rceTa ntx fo atrion. 165,084 rece Ant valy ila hi ble re d a tp w arw $2,281,392,080 tiw cipa .jctn.g ts in 19 ov/x-38 98 t -06. o p 38 df p 11. e 2r$13,820 cent for recently hired young Rela etrion w50s or sh 10k 0% ip erB s a e 74.3% tr w ee lik en 401( ely 5.6% to kha ) P v la er n Ac e low 4.4% gare di cro ng inc unt E 3.6% om B B Ra e Il s a m n aec nd m e 2.0% be s a tro snd hi ha p a Sa ve 1.3% nd la ha /ror yd c ................................ le ont ss 1.4% r itbu im tie o ns to t 0.5% o E accB um RIula -E 0.3% ................................ R te F s ahou ball0.2% d be ance di w re itch th t 6.3% ed teoir .......... E cBRI urre nt 17 Ass The e t All EBRoc I/ICI atio 401( n to kEqu ) d 401( ata ity kb ) F a Ps lan un e e ds nv iron ment is certified to be fully co Amp ge G lia roup nt with the ISO-27002 Information Security Audit begin t Teo nur consoli e (year ds a )te account bala nces fo r indiv idua ls acro ss data providers to provide a more accurate estimate of In a Sen w e ? y w no gw 4 iv te 0 .e e 1 n ye 11 b(k ri.or fo ) p ar g r, a a /pd d t rhe d tiiti f/ c o ip 50s b cha na rie aln ng fs d ts p e ed t’ in a in a f/ ilE o v Bn es RI ptaa tmen _ rrg tIiB ce_1 ipa t-d t in 2a n a14.7% tte -’s a 2 co fu 00 c nd m 8.p coun s p .d afn t y b st alao nc ce k co in t 7.4% n he ti n du at ed ab a ase t his is tto her 77.9% ic 14. su a 2m ll yof lotw hr lev ee fa els cto . rL s: ess than participa30 nt % s he 30% ld more than 80 percent of their accounts in balanced funds at the end of 2015 (Figure 32). At year-end 20 05 and For com mNote: “Funds” include mutual funds, bank collective trusts, lif 3. pany 55 8 00 A stocnnu k al Reports (Version 1. 9.11). Wash e insurance separate accounts, and any pooled investment produc 0. ingt 8%on, DC: U.S. De 17. pa 1% rtment of Labor, Em 17. ploy 6% t ee Benefits Note: "Funds" include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product to salary varies somewhat with salary. For 14.5 example, among participants in their 20s, the ratio t primarily invested in the security ends to 12. in5crease slightly offe 29 r20 ed16 ta/rrAg g ee pe tor - dta st/5 e 2. 22 fun 4 98 ds, 67 -supp le pe m rceent nta lda he Pld e ta rc .x te he ls ntag x m ea of t y A ea cc r- oun end t B20 alanc 15. e I Ta nvre g se ted t-dia n E tequi fun ty F d und asssets represented 27 percent of year-Ie ns nd 60 $250- tit 50% 2014 ute $625 Pa en rspe d ye ca tiv r- 40s e end 10 2 , 015. no. 7.9 2, and 15,208 EBRI 28.8% Issue B215,627 rief, no. 272 (A 13.9% ugu $6,404,566,546 st). Ava 7.ila 1 ble a 57.4% t www.ici.or $29,702 g/pdf/per10-02.pdf Figure 15, 60s 401(k) 76.7% Plan A Acc ccount 4.4% o B ualanc nt Bal eP3.6% ran esid ces ent Great H 2.9% arry 20s Co er nThan a1.7% wa30s y a $ t t 1he 01.1% 0 a,6. bov 0 40s 300 e, ab ddr y 1.2% P e50s sa sr,t (ic 20 ipa 2) 0.4% 6 n60s t59 A-g 06 e70; 0.3% and e A-llm Te ail: nur 0.2% cona e .......................... way@ 7.3% ebri.org 19 older the participant, the lower the avera9ge), tenure (the higher the tenure of the participant, the 5.3 lower the average), 47 Social 0–2 Security replac89 es.5 a% much highe a r fr 74 a.1 ction % of preretire 9m .2e % nt earnings fo2 r .6 low %er-income workers. 3For .6%example, the first- participants in 2015. Co 60s 12. m 6pany stock also dec 14.9% lined for the two group 6.7% s of recently hired78.4% participants, from 9 percent of e Hm ow ploy eve err, . p Ia n a rtic dip dit aion, nts a the nd ya a sr sets e le ss ar e lik ce onc ly te o nh tra av te e dr ollo in la ve rg rs fr e pom lans a . For pre v eious xam p ele m, p66 loy e pre’s rc p ela ntn in of p ta he rtir ic ipa curn re ts a nt rpela in p n lans standard. More 23% o primarily invested in the security indicated. ver, EBRI has obtained a legal opinion that the methodology use 0d –2 me Year ets s the privac 29% y standards of the Gramm- a Yv e In e arra -p E g la nd en 7 a y p 20 ce Of w c ea ount r15 rc e 2014 nt Sn hic b of a ap h l(a : tar sh la 40 ntc ot e 1( e get- s s p tk of ) d date funds a e a 40 ta r ss indiv 1( e at v k s w a )il idua P ae b a are rle re tic l. ) ,inv an ip oa nly opt ent st ion s’ 1. e4. d5 A 7 in c ss peerc tom e Ant 6. llp 7oc a on fa y tthe ion st o $4. ................................ ck 4a ttr y ile lio an r-in end 401( 20k 15 ) p , la r ................................ oug n ashl se yt s t he we sa re m pa ertici sha pra ............. ent as in loans. 17 $10,000 >10–20 3.9 Years 0.5% 19% 12.9% 5.7 13.0% indicated. 20 The Fig15 ury, ee 60 a 41 r-, p ee Rec nd rce 20 entl n t15 of y Hi E40 BRI r1( ed 4 /I k)C 0 I p 1(k a 40 rt1( ic ) P ip karti ) a nt da c s he tipant aba ld se sb Tend to B a sh laow nce s dt ha fun e t,Les d on s ts hr a Li v 5.oug e 0krel ag h t ye to Hol , a43 r 5.g 2e p t- d Com edra ce te n tfun pan of dps ya S a rtnd toc icipnon ka ................................ nt 3.– 8a ta cc rg ount et-d b ataela b na cla es n...... c w ee dr 42 e SecurG ity rou Ap dmini Zs er troa 50s tion (M 1–10% arch) 11 . –20 Ava % ilab 21–3 le 28.7% a0% t ww 31 w–40% .dol.gov 41–5 /si0% t13.7% es/d 51– efa 60% ult/file 61s–70 /eb % sa57.6% /71– res80% earche 81 r–90 s/st % ati9 st 1–10 ics/0% retirement- $625-$1,250 Zero 14,719 92% 326,062 81% 76% $13,376,319,694 30s 79% 48 87% 82% $41,024 4.7 with sa lary All for low 74.3% -to-mode 5.2% rate sal2. a 4.1% 5ry g 5.r 0oup 2.23.8% s (Figure 2.2% 18). How 1.4% ever, a1.4% t high sa0.6% lary levels 0.4% the rat0.3% io tends t6.3% o decline t 36 he asse >2 20 ts of – % 5 plans offering such funds in t 70.8 he % 24% ir inv 3.4 estmen8t.3 lin %eups. 3.3% 5.5% Utkus and , Stw ep whe w.e n P br., i.or 1. a2nd g87 /pd All Je .9f/ % an brA ie. fs Yp oung df/08 . 04 20ib1.p 12. 12.2% Hdow f Ame3. ri 2ca Saves 2 8.2% 012: A Report on Va 79.6% nguard 20 19% 11 Defined 20% 3.8 19% account balance (the highe 3.3 r the account balance, the lower the 18% average), and salary (the higher the pa 18% rticipant’s 40 y Heold a S 1( re e e k re ) n, Fi pp la g Sa la ur cn a e rem a h, 21 c ec nt 19. o Ja in 2unt ra cH k te o Va b ld (a m enD la n en a e e c n tre h a s s in 199 e l. che i, 2016a a dnd ule8 t d C( a the So ro ol c 2 ia y Qui p e l e a Sr re c c 18% -c k e eurity . nd n2 t 00 in 201 2014 firs 0. “ 18% t- EB 4y 501 e .R aI/ ( r kICI b )e P nl401( e afits n As k a)set A s d aa ta pe llo b rc ac e s 18% a e nta t ion, up gd ea o A te f c)c a.ount v erag B ea infl lanaction es, a -ind nd exe Loa d n career account ? N s. e w contribut18% ions by the pa 40 rticipant, the employer, or both; 17% 17.7 L weit ah mor ch-Bl Eil quit e e yty h Ac , a bond, n t. 2,50 At m no oney, 0 p tim ar e and/ t ic ha ips or 17% a a nt balanc ny s, no and ed np 17% ub ftunds he lic se ,p e sa rsm ona e p l la info nsr ma acction ount tha fot r is 68 p epre so rc na ent lly of idea nti ll fia pla bn a le, ss suc eth s. a s a Social Security S 17ee Table D6 in U.S. De60s partment of Labor, Emp 29.4% loyee Benefits Sec 26% urity 13.3% Administration 2016a 57.3% . $1,250- 2012 Source: Tabulations from EBRI/ICI Participant-Directed 0%, $2,500 2013, and 1–10% 2014. This sha 14,572 reRetirement Plan Data Collection Project. has fa 2% llen b 537,251 y 5% 63 perce8% nt sinc$26,038,716,458 e 9% 1999 w 31 he 6% n com 12.7pa 7% ny s13. toc 2$48,467 k accounted for a Clloc ope E ala di te nd, to dr it a o C 20s l B 50 rea o % q ig. auit rd :20 y H 71 fu ar 11 .1% rnds y. C“oT n(a aw Fi r1 g g ay .1% e ur ,t p -eD u b21 a litse ) h 1, e.Fu r2 w ; S % hic nd teph is o hUse en 1 B .6% lin 401 ane ke l yw , 2. e a 31 d (yk .8 it ) o t% ro P . A la hold nns y v 2 i 12. a .3% e end w 2qsuit et xhe ie prs. How e2 sP .4 se e% dr i si nst te he v isn 2 e p .6% c ru , e b indiv l of icatTheir ioidua n 3 a .4% nd l a Use tho ssset a , e o 3 20 .5 f t% 07 hllo 2. e7 a – cu20 a th tions 9 o09 r .1% s s.” h o vE ua lB d rRI ie no d t funCdha s, sim nge >5–s in A il 1a 0r to ss the et A sh Source: Tabulations from EBRI/ICI Participant-Directed Retireme lloc are a tin ion 20 B 10. 14 e 9tw . e e An b61 out Ye .6 a % rha -Elf of nd 10.8 20 40 14 1 nt Plan Data Collection Project. ( k a) nd 8 .4 pa % Yre tic arip -E and nts he 2015 ld 4. ............................................................. 8 ta % rget-date funds, 14 8p .4 e% rcent held non– 21 Fi g For ur beull 401( 40 16 et, ins kMe ) /2 ad s00 s ia en 401( t 5pe fig 0.6ure ns 83 ionp ks .2 ), % P se la la en Ac nbul Inve c le s ot tm unt in.pd e nt Bf aComp l 1. a4ncea A ny mIn ong stit L ute onge 2017. r-Te nured 8. 7Participants, by Age and Salary8. , 52015 .......... 20 somewhat. A similar pattern occur bs among participants in 7.6 their 60s (Figure 19). 6.9 7.0 Contribution Plan aData. Valley Forge, PA: The Vanguard Group, Vanguard Center for Retirement Research. a 27% 20s salary, t and he low comepany r the s ta oc vk e,r and age) GI (Cs Fig ur and/ e 50 or ). Inv earning estsm fo The analysis includes the 1.3 million participants with two or e r n re t tire Opt d w ioons rk The analysis includes the 0.4 million recently hired participa e rs in the 1960–1969 fewer years of tenure in 2015 and in plans offering company birth coho nts (those with two or fewer years of tenure) holding balanced rt [individuals aged 47 to 56 stoc in k as an investment option. funds in 1998; the 1.4 million 2016]) decreased as income b Ae a ctiv s10 cirti% b yed in 199 to the o 8.” ffi c> Ier All nv 10%–20% s, t ersutsm tees en , m t C em om berp s,a on r yo tIh 25.9% ns er2% s tit po ut nse o rP s o e4% r f t spe he E ct m iv pe lo 5% y 13.6% 6 e, e B no. enef 1i5% t( R Ja esnua earcr hy 2% I) n, sta itnd 60.5% ute, t Eh 4% B e E RIB I Rss I E ue du cB ar tiie onf a , n no. d Re21 sea8 rch $2,500-$6,250 14,360 1,064,449 $56,569,883,213 $53,145 nu Figmb ure e r, 42 > 1 b, 0– e30s N e20 n ew tra 4 ns 0 57 f1 e( .4% rre k) d P to arti 2 o.1% cip r sha an re ts d 2 Te .w 0% ith n 44 d.7 EB N % R o 2.5% I. t to Ho2 ld .7 H % 8ig .2h C % 3onc .4%entra 3t.9 ions % 8.8 % in 4 C.2% ompany 4 .8% Stock ................................ 1 55 .1.% 3% 11.9% 43 19 p 10e %rcent of a 77 ss .0 e% ts. Recently hired 401(k) participants contributed t> o 2–5 thisYears trend: they tend to be less likely to w As taide rg se e Ily ss t- t d a ue A a cllo r t e os B r c b s p ie a afla t, a io nc no. rtn ie cd ipa b 36 y I fun recently hired participants holding balanced funds in 2006; the n 1 ( ts. F nve dA s, ugus or a snd t 2007 e me txa )2 . m A nt pv e pa r le Op c ile , ant b 54 tle ihe on p ae tld s r 2007 w c a b e w ot nt nd w h. .e of 2.0 million recently hired participants holding balanced funds Age b 2015 p ri.or ar, tiS g cipa /p alary 2007 dn f/ ts he b, rie afs nd ld pno d P f/lan Siz E eB qR uit I_I y B fun in 2007; the 2.4 million e _0 d 8s, w -201 hil 1_ eN 2007 ao361 bout_T 16D p Fe s.pd rcent f of 37 .. b20042007 b. “Appe 2015 ndix: Additional F 2015 igures for the EBRI/ICI Particip 2015 ant-Dire 2007 cted Re 2015 tirement Plan D2015 ata Collection Asset Allocation and Participant Age .................................................................................................................. 21 Row percentages may not add to 100 percent because of rounding. 20s 48 Fund, or their staffs. Nothing herein is to be construed as an attempt to aid or hinder the adoption of any pending legislation, regulation, or In a For d A ? d v a it a n T ion ot ila a ot her na ba le tl in o ly s ta sd able itv s e e ht v tra st ot value tp m c ing s: ke recently hired participants holding balanced funds in 2008; the ing >// nt 20–30% a funds in r tg st e arrg te iur ta ut etn o te io -d r na a n a sh te l.v a c fu rc a end oun ngua of us t the e r bd a ir a .c lnd 1% a a o nc s m the sets e /is, w a 1.9 million recently hired participants holding balanced funds m p te/pd o 3% hic rs 1. b is 2% h d a f/ te la H nc n e Ac p e S12 e e 3% d o nds f fun .p the don fd i r s, r us t 3% he e e c 15. fro p ee nt 4% m rfor ly2007 1% hir in 2009; the 2.0 million ma enc dt hro e p aof 2% rug tic fi h ipa na 2009, nc ntis a a 22. l m sl1% e so ha ea rCop kev te s ela a bnd nd ec o 20 on m11. e B Ae cc count ause $6,250- b m aos lan t$12,500 c $0 of e a the nd p te lanur ns e h a av re e a a ls so mp a 6,661 osi ll nu tiv m eb lye r c or of re p1,134, la artteic d((more)) i 792 p aa m nt ong s, t he pa ra tss ic$58,420,112,123 ipa et n size ts in t forhe m a 20 ny 15 p la da ns ta is ba m se. $51,481 od A e spta . rOne ticipa -qnua t’s rter of 18 10 10% inc Th re(a is Fe s e p > b d a 2r.tt 0– ua Th ern 30 re y )ime s . A da r viv n a ila ere n71 b pin le la .1 c p % a e atm rt w eb w nt yw rra e .ic s te trictio i.or fog r 37 /pd th ns .6 e % f/ plow lp ae ce e r0 d st 9 o li -n 05 feloa time .pd n 8f .5 a ho a mo % nd us un e w ho ts w.ld w .e ea brning ri.or 12.g 4% s/pd quintil f/breie w fsapsd 83 f/02 pe 00 rcib. 12 ent; .p 6d % fo f r the middle 40s 48.8% 2.6% 2.3% 3.0% 3 .4% 4.2% 5.1 % 5.4% 6.2% 5.5% <0.5% 13.5% Es tim .a . te 20 s 12 of b th . e P rnu iva mb recently hired participants holding balanced funds in 2010; the te eP r eons f 4 ion P 01(kla ) p n B alans ull a end tin, A activ bst er p a 2.3 million recently hired participants holding balanced funds a ct rtici of p20 ants 06 a For re m ba s 55 ed0 o 0 A n a nnu comb al Re in 2011; the 2.5 million inaptior on tso (f Ve darta sion fro1. m 1) U.S . W . De ash pingt artmon, ent I Fi nv gur ese tm 20 17 hold e0% nt , Ratio op com tio p o ns a f n 4 ay 0 r e 1 st (k) g orcou k P . p lA an etd Acco y int ear o -e e und ight nt Balan 20 b15 roa , d ce a b c t out ao te Sala g one orie ry, -s. qua b r y t e Pra r of ticripa ece nnt t A lyg hi e raend d 40 Te1( nur k)e p ................................ lan participants in pla..... ns 20 participants held more than 80 percent of their bala 40s nces in equit 4%y 50s funds (Figures 26 and 27). All 30s 60s iP nr te oje rpre ctt Of w at fo iver r Y ule hic e, o a 20s r h r-: tar as E> nd l 30–80% e get- g20 al, acco date funds 03.” u nItnv inge , a st are ctm uar an eint alopt , o Crion o o 3% m thp era sn uy ch Ip 6% ns rofteit su sit oe n alP 7% a edrvspe ice. c www tiv 4% e .10 ebr, i.no. or2% g 2A (Au5% gust). Available at 24 8 1996 2015 EBR 1999 I/ICI 2002 2007 0. 2008 8% 2010 11. 2012 8% 2013 201416.8% 2015 Overall, lo $12,500- a ns 0% 0% f$25,000 rom 40 recently hired participants holding balanced funds in 2012; the 1(k) plans tende 4,006 d to be small, w 1,339, 2.9 million recently hired participants holding balanced funds ith 327 a sizable maj$70,309,390,837 ority of eligib in 2013, and the 2.8 million le 401(k) part$52,496 icipants in all age A m For ss or Ae a e ss tn lik e aat >3 lloc n eA a ly 0lloc ly a tt so io is a hold n a to ion f ta ls o a r tg he nd v e66 a tse -rId ie .6 na d v s w % te iv est e fit un r m si h p e d fied nt us a rOp teinv ic aipa tmo ions e 32 st nt ng .7 m ................................................................ % a e d g nt e efaul ; op Fitg te ion ur d e s. A a nd 23 9 22% t .0 no d y % e e nm a -d ronst -ee faul nd ra te 20 te ds t 1 401( 5 1, his 6.70 4% k w ) pit pela h rc n a e n a p na t rt na of ................................ icip ly rea si cnts s of ent , ls ya 8. e ss hir e 5% e Mitc etd a l40 he loc ll 1( a atknd ion b ) ........... Uty k us 21 tenure w the ith a alloc n ea m tio plo n o yef a r ser ssevte s in a s as a n indiv proxy idua forl’ ts he ac le count ngth; of and tim e a worker has participated in the 401(k) plan. Indeed, t Fi he Ac gur c po e la un ns 43 t , b ha A ala s vset A e nc a ess s llo e arte c s of a ne tion D t$2 of 5u 0,00 isnp tribu a0 o idt loa ion o r le n ss b f Re a , la and nc ceent a s.not l y Th H h us ie re r , d un 2 9 40 p p a1( e idrk cloa )e nt Pn a rha b tic av lipa aenc p nt e la s n a A ac re cso sets no unt t inc b Be alt ud la wnc e ed e e n $250 in to aC no y m ,001 of pthe a >30 n a y nd eSt igo ht $1 ck a ,25 sin se0,00 t 0 quintile, the50s mean S 47 o0–2 c .1% ial Security 3.3% repl>2–5 a 2c .8 e% ment r 3a .6% te wa>5–10 s 4 54 .0 % percent; 5.1% and >10–20 fo6r .1 the % highe 6.0% st q >20–30 uintil 5.6% e, it wa4 s .1 34 % perc 1e 2.2% nt. See Deloitte C consulting LLrecently hired participants holding balanced funds in 2014, and P, International Foundation of E the 3.3 million recently hired participants holding balanced f mployee Benefit Plans, and tunds in 2015. he International Society of Certified Target-date fund use varies with participant age and tenure. Younger participants were more likely to hold target-date of LaD bC or, : offe U. Bur S. re ing a Du ec p oom a f rLta m pb a > e o 0–2 ny 80% nt r S s of ta toc tiLsa k tics bhe o,r ld , aE nc m d >2–5 om U.S ploy pa . e n De e y p B st 0% a eo rtm ne ckfit , e>5–10 nt c s Se om 1% of p cLu aar rb e ito d yr, A w 1% Em d itm h a p >10–20 ini loy bst out ere 1% a tB43 ion (Ma ene pfit ersc 0% e r Sc >20–30 nt eh) c u of . rity Aa v ll 4 1% a Ad ila0 m b1( le inis k a )tr tp a >3 a tion r 0ticipa repnt orts s. . See Age Group Year- All End 2015 Snapshot of 401(k) Participants’ Asset Allocation w w . $25,000- w 20 .ic16 i.or . $62,500 g H/pd ow f/ Ap m bee r10 ric- a02 Sa _v ae ps pe 20 ndix.p 1 3,205 6: Va dfngu ard 20 2,302, 15 100% 859 Defined Cont $124,609,075,745 ribution P 100% lan Data. Valley For $54,111 100% ge, PA: The All 84. Less 3%Than $10,000 63.1% 8.6% 5.2% More Than $100,000 7.4% groups having no loan outstanding at all. For example, 92 >$40,000–$50,000 percent of participants in their 20s, 76 percent of participants investment options and Row percentages may not add to 100 percent because of rounding also by participant age. Because . asset allocation is influenced by the investment options I 2012. pb ab rtot icson, Rog ipants heeld r G b., ala Rog nceedr fu J. nds, Grabcow om sk pa i, rJa edm w eit s P h . 29 H a prerr in ce gnt ton, at aynd earC -a er nd la N 19 une 98 s. 201 (Figur6 e. 35 20)16 . Ov SB erB I the Ye s aa rb m ook: Stoc e period, ks, ( 66 Fi g A pur ss ere ec te 3) A nt .lloc 60s of ap tion b arti50 cipa y .9% In nv ts w es3 tim .8% th a ent c cOp oun 3t .2 ions t% ba la and nc 4.1% eA s of ge, le Sa 4 ss .6 la % r ty ha , n $10,0 and 5.3% Plan Size 00 ha 5.8d ................................................................ % five or 4.9% fewer 4 y.1% ears of 2 te .9nur % e, 1 w 0.4% hile 21 categorie40 s d1( esk EBRI c)rib Pe la Id s ns . s u eW S Br our it ie h C cfe: i sT r o abul eg m iat s p tia er ons n ed y i f rn St om th oc E e U Bk R, I./S IC b .I P y Par at P ten ic aipant tr an ticd -ipa D T irr ec a nt d ted em A Rg aet re k ir O em ................................ fent fic e. Pl I an SS DN ata : 0 C8 ol 8 lec 7 - ti1 on 37 P X roj /9 ec 0................................ t. 0887 -137X/90 $ .50+.50............... 43 “R Fig eur pla e ?c 18 eE m q , eu Ratio nt ity R f at u e— on f d 4 Pr s 0ic 1 ce (k) onsi s” P in st l an Con of Acco p goole rea, scs u ion d n t inv a Balan l e Bud stm gce e etnt t Offic s p o Sala re im 2a ry 016b rilfo y inv . r P For e articip staeddd iti in st an ona ts oc l in Their d kis s, inc cussluding ion 2,0 s s, e by ee q Br uit Te ad yy n m u are n ut du ....................... Bog al funds, dan 2016 ban a k nd 22 Fu fun rd the E s t m rh m p 0a loy o n o re e, lde et 19 he Br 96 e p ne paerfit rtc ic 20 e Sp ip 00 nt a e a nt cgia s e. 20 lis of A 02 tts. py a e 20 ra t20 ir 15 c-05 ipa e. nd A nnnu t20 s hold 2015 07 al D , ing 63 efin 20 p 08 no e ed rc ee B qnt e 20 uit ne 09 of yfi fun tp B ar 20 e d tnc ic s v 10ip hm a arnt ie a 20 rs in t d k 11 iw ng ithe h a Sur 20 irg 12 ve 20 e, ys w : he 2 it 2001 h 13 ld 71 5 Edit ta p r20 g ee r 14 ion. cte -d nt a N tof 20 ee 15 w fun p a Yrd or ts, ickipa : Dnetloit s in te discus ws w ion $62,500- S w ource: .d in Of w ol.g no T$125,000 abul te ovhic /s 2. atiit h ons : tar eNote: “Balanced funds” include mutual funds, bank collective tr s/ from d get- efa E date funds B ul RtI/f /ICil I e Ps/ arti ecb i1,391 are pant-D sa/r an e irse opt ecte a ion r d cR he etir rem s 2,114, usts, life insurance separate accounts, and any pooled investme /s etnt atP 232 is lan tic D s/ ata reC tiol re lem cti$122,791,809,419 on ent P- roj bect. ulletins/2 nt product primarily 006pensionp$58,079 lanbulletin.pdf Y 64. ears 5% of Tenure 74.1% 73.1% Source: Tabulations from EBRI/ICI Participant-Directed Retirement P lan Data Collection Project. SalaY ry ear Ra s n of g e Tenure At ye Va a ? rngua -W end ithdr r20 d a G 15 w roup a , l43 s, b , p C Va or om erngu r ponent c ow ena ing, t r sof d m ay C 40 ae nd not nt 1( add e loa kr) fo tp n r o la r 100 e n p Re p per a ta ir y crm ent etm ic e bec ipa nt ens. aus tn Re t e s’ ofsea a rc oundi crount ch. ng.A b va ala ila nb cle es w at ere invested in equity funds, on average, in their a 40s, Source: T Alland abulations from EBR 87 53 p .9% e invested in a mix of equities and fixed-income securities. rcent2.6% of I/ICI Participant-D partic 2. ipa 3% irected R nts in t 3.0% etireme heir nt Plan D 603.3 s h ata C % ad ollection Project. no 4loa .1%ns out 4.7 st % anding 4. 8% at year5.1% -end 2015 4.4 % (Figur 1e 1 .8% 51). a re vc ae ila nt Bond bly le hir t s, B o ep dill a 40 rs, a tic 1( ipa nd k)n I p tnfl s, Figu ara titcion ipa r— e nt U 24 s ha .S. p v rC e ea sent p bit ea cs a om l Mss a er e le kte ss a ts P lloc likee a rltfor y io tn b m o a hy nc old sa e la c bom y ry A p rss a ange n ey t C st a la o nd ss ck b 19 (y Fi 2 inv g6 ur –e 20 est 41 1 m 5) e . nt a Hnd ob opok le tion ss en: J s. Sa likeohn Wiley & lyl atr o y hold 75 perceA nt ccount of pbal arances ticipa an re ts w partiici th pant ac ac ccount ount bal ba ances lance hel s g d ir ne 401(k ater) t plha ans n $100 at the parti ,00 ci0 h pants' adc urrent more e m th pla on ye rs 10 and ye are ars of net of p te lan nur loans. e 100 or fewer 101 to 500 501 to 1,000 1,001 to 5,000 >5,000 Brady, Burham, and Holden 2012. Size of Account Balance Dis ?t ribu $125,000- c 4olle 0t a1 ion o (k cti) p v$250,000 e f Equit a trr uti stcs, life y ip Fu an nd ts ins w Aur lloc ere an ac tions e les sep 923 s lik aa nd raely tP ea a to rtcic c h ou ipa 2,503, a nt nt vs, e lo E 912 a xp nd aosur not s o h ee u trts o ptan E oole $161,576,476,861 qui dt din ie inv sg ......................................................... a est t y mea ent r- s. en d 2015 $64,530 than at year-end 23 theirC *20s onsu A ta, rget 49 lting -dat pe eL r fL c und e Pnt . tA y pic of vaail p lly a ab rrebalan t le ic ipa at cw n et sw s in t itw s 2.d pohe rte foloit ilio r 40s ttoe bec .c , om aond m/ec 5 lont e1 ss p e fo e nt cru c /se d ed nt am o of n/D grp e oa loit wr th tiand tce ipa /u ms/ notre D s in t o foccum us he ed eir nt o 60s ns/ inc hum ohold mea an ing s- ic t appr ano pitoae ac lq /u he uit ss- y hc and fun - annu ds. al- c 38ompar Sou edrce: Tabu w Sour ith 4 ce: lati 1 Ton abulations ps from EBRI/ICI Parti ercent fr om of the pa EBRI/ICI rtici cipa pan401( t-Di nts in t rected Reti k) Parthe icipant- ireme r 60s Dir nec t Pl . ted an Re Data Col Retir ceem ntly ent lecti hir Plan one Proj Data d p ect. a Collec rticition pan Prt ojs w ect.ere more likely to hold target-date . 2004 Participants include the 26.1 million 401(k) plan participants c. “Contribution Behavior of 401(kin the y ) Plaear-end 2015 EBR n Participa n I/IC ts D I 401(k) database and the 21.8 mill uring Bull and Bear ion 401(k) plan participants in the y Markets.” National T ear- ax 9 RS eti orem urce 42 ent : Tas bavi ulangs tionhel s frd om in E pB lans RI/ Ia Ct I previ Partic ous ipan etm -Dp irle oc yte ers d R oe r trol irelm ed en over t Plain nto DaItR aA C so a lle re ctnot ion P incl rouded. ject. Taht rgtept- s:/ da/pr te 25 e fu ss nd room. s oftevn angu are a ur sd e.dc om as th /ne o nin defaul dexe t inv d/H es Atme S201 nt6_ in Faina utol.p ma dtic f enrollment plans and in plans’ investment lineups the same as in 2014, and compared with 44 pe> rc 5–10 ent aYears t year-end 2013, 37 percent at year-end 2008, and 48 percent at F igur The ec a ro 44 s, Source: s-P serce ectional Tabulations ntag ana e from o lyf EBR sis 40 I/IC f1 o I r (k) Participant-D this P lan pub s irli ect Offerin ced ation Retirement fo gun L Plan o dan tha Data s,t C b ollection cy o P nslan o Project. lid Siz ating e, the 201 multi 5 ............................................................ ple accounts across a majority of the 44 inf 19 ormation is available for a subset of participants in the 2015 EBRI/ICI 401(k) database. Fi eq guit ur Sons pa y e fun s 19 > s$250,000 e, Source: , sd end 2007 EBR I Ratio tn s. he c . tT a abulations rget Re oc f dat e I/IC 4 nt 0 e I database. from ly 1 of(k) hir t EBR he P e f I/IC und, d lan I Participant-D 40 w Acco h 1( ick h ) is u p u 1,159 ira s n ect ually rt ed t Balan ic Rip i etirement nc alu nt ded ce s a Plan t in lo so t 14,432,851 tD he Sala ata fe u Cnd nd ollection ry ’s not nam fo Project. r P e. to articip hold $1,274,906,528,419 aan high ts in Their concentr 6a0 tion o s, by f th Ten e $88,334 u irre ac ....................... count balances in 22 (Figure b A target-date fu 12). Source: Tabulations nd typical from ly rebal EBRI/IC ances i I Participant-D ts portfol irio to become ected Retirement less focu Plan Data sed on Collection growth Project. and more focused on income as it approaches and passes the target Number of plan participants Th e la .2 te a20 T0 he s1 t 12 sam 4 av c . a . A pilP lt e a r b y o iv f e le a parti a td re-a ci eP tpants nd ae ns fro 20 ion P changes m15 the , la 18 U.S n B o ver p.e ull tir De m c ee etp .nt in, A artm of be a st nt ll 40 raocf t1( Lof a kb )20 o p r a 07 arre tic For ip foa r m nt p la s w 55 n 0 yho 0 A earw nnu 2014 erea l Re e(ligib sep e or le U.S tfor s .( De Ve loa p rsi a ns rtm on ha e 1. d nt 5) lo o . a f W ns La a b sh out or, ingt staon, nding The analy© 2 sis i0 nc 1lu 7d , E es m the p 2 lo 6.y 1ee B millioen n pef artiit c R ipaes ntse ia nrc the h I yen as r-t ein td u t 2e 0 - 1 5 E E dBuc RIa /IC tiIo dn a atab n ad R se 40 e 1 s (e ka ) d ra cth F abas u end. . All rights reserved. fun Thed d s t pe efin h rcae e n th Nnt d ote: -ab Account g ose eenc of hm w balances 40 ita h mo 1( rkik are ng ) rparticipant p e -su a y re triv a ce r ipa s on account y-20 nts hold 15 t balances he .p jd ob ing fheld : a in no t 401(k) ye eq auit r plans -ey n at d funds a the 20 participants’ 15, ls 60 o v current paerrie cemploy e dnt w it of ers h te and panu r are tic net rie p — of ant plan pa s w r loans. ticitipa h two Retirement nts w or sav it h fiv fe ings w held eer or ye a fe rs of wer AA ss ss oe ctia b A tion P llocatrion ocet eo dings, Equit y N in Fu ends t y-Sixt ................................................................ h Annual C Num onfe berr of enc Par et icipant on Ta s in xa Plan tion, Novem ................................ ber 13–15, 2003, Chic .................... ago: 3244–53. 23 Note: Account balances are participant account balances held in 401(k) plans at the participants’ current employers and are net of plan loans. Retirement savings held in Note: Account balances are participant account balances held in 401( k) plans at the participants’ current employers and are net of plan loans. Retirement 30 Note: Source: C o Components may mpT oabulations nents m not add to 100 percent because of rounding. from ay no EBR t add I/ICI tParticipant-D o the to 43 tal irin ectted he Rfetirement irst colum Plan n D bata ecaus Collection e of r Project. ounding. “ Funds” include mutual funds, bank collective trusts, life ( yseeaer -P ela nd date of th n S 20 po 07 ns e fu o ( nF r d, wh igur Cou ich e nc i s u 20 il su o )f . alA A ly ime lt nog cluric ded i etahe n 2016) th r, e fu eq n.d' uit At s ny ame. y sec earur -end itie 201 s—e 5, q uit 67y p fun erce dnt s, t ohe f ta e rg qe uit t-y d ap te or m tion utuof al fu ba nd la nc ase sd ets fun we drs, e he alnd d in DC Al blin plans at previous employers or rolled over into 101,625 IRAs are not included. 26,136,446 The tenure variable is generally 1,917,284,271,397 years working at current employer, and thus $73,357 may overstate providers to the single individual owning them resulted in an overall increase of 2.6 percent in the average 401(k) plan com Thp e ? a ra nB yt io o R st n oo o w d f c p f k 401( e ru c (e Fi n nd tg k a) ur g s e p sa e lm a rs 42 e n a ya a nny c oa c t a o nd d p un doole t43 o t 1 b 0)a d 0.l a pa e nc c rcc e eount n t( b aet c a the p usre im c ourre fa ro ril uy nnt d inv in e g. m es ptloy ede in b r) toond sala s. ry alone is not an indicator of preparedness for plans sav at ings prev held ious in employ plans at ers prev or rolled ious employ over into ers IR or As rolled are not over included. in to IRAs The are tenure not included. variable T is he generally tenure v ariable years wis orking generally at curren years t employ working er, at and current thus employ may over, erstate and years c Employ DCe : eU. N B ote: S. ene Account Dfit ep s aS balances re tm curity ent are of Ad participant L minis abo account rtra , E tion m balances ploy 2016a). e held e B in e 401(k) nefit plans s Se at the cuparticipants’ rity Adm current inist employ ration (Ma ers and are r net ch) of . plan Ava loans. ilab Rle etirement at savings held in b against their 401(k) plan accounts, down from 20 percent at year-end 2014. Loans outstanding amounted to years of insuranc te years nur Equities include equity e separat of e participatio we e re acc n m in oor unts, the funds, company e 401(k) li and ke plan. any ly not p o stock, and the equity o led to investment be invest po pr e ro td ion of balanced funds. Funds include mutual funds, bank colle duct in e primarily quity fun invest ds ed ( in Fithe gur security e 27) indicated. . The p e The rcc tiv e tenure e trusts, life insurance separate ntag e variab of p le a isr t generally icipants holding tenure held target-date funds, compared with about half of participants with more than five to 10 years of tenure, and WaS GICs are gu sh ou of ringt cparticipation eS : T ource: on, abu aran laTabul D tio in teed i C nthe s: fa rN o 401(k) tin m on a vestmen E t s iona Bfplan. R rom I/IC t con l Ta E I P Ba R rtic tracts. I/IC x As ipI aP nt-D aso rti ire cc ic pant-D ia tet dion. Reitire rec me ted nR t P elti arem n Da eta nt C Po lan llecD tio an ta PC rool jelc et. ction Project. thus may overstate years of participation in the 401(k) plan. Figure 45 N, plans oP teerce : " at Eprev quin ty ious t fu ag n employ ds e ” o iners c f Eli luor derolled g mib utule 4 ov aler fu into n0 d1 s IR , (k b As a) n are kP c not lan olle included. c P tivar e trticip u Percentages sts, lifan e ints su may r aW n c not it e h 401( s add epa to ra 100 te k a percent ) c cP ou la nbecause n Lo ts, anda a of ns ny roundi , poboy lng. e d P ila nvn Size estment , pr20 odu 15 ct p................... rimarily 44 p Fi Inv la gns ur es e t( Sources: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project and U.S. Department of Labor m s20 ee ent , In 40 C v1( om esk tm p ) a e Pny nt lan A Com Inst ssip e ta u tny s A te. Ins rQua e C tit on rut tec ere l2017) y nt Supp rate . d P le lin Equit a m n eS nt pa or ns y ie o s D r ................................ aCou ta. nc Wil a sh of ingt Ame on, ricaD 2016 C: ..................................................... Inr ve ep so tm rte ed nt a n Com incre paany se Iin n st the itut inc e. id enc e 23 compA an ss ye st t A olloc ck— arte ion o present f 401 ed (k 66 ) P la pe n P rceant rt ic of ipa 40 n1( ts W k) ip thou lan p t a Erqtuit icip ya Fu nts’ nds ass ................................................................ ets at year-end 2015 (Figure 21). .... 28 account baaccounts, and any lance. This s pooled inv tatistic estment product primar should be inte ily rp inv re ested tedin the security with cau indicated. tion, as it may not represent the total 401(k) assets owned by retireyears mc ent, w ono rking r isat it current the o empl nly m oyer, ea s and ure thus tha may t ca on verstate be us years ed to o jud f participati ge retir on e in me the nt 40r 1 e (k a) d plan. iness or savings adequacy (see Brady, Sour Note: ce: Th Te abul medi atian ons accou from EBR nt bal I/IC anI ce Par att iy cear ipant- -en D d ir2015 ected w Ras etir$16, eme732. nt Plan Data Collection Project. wwCompon w.dol.g ents may n ov/site ot add to total s/default becau /files/ se of rou ebsan /r die nse g. archers/statistics/retirement-bulletins/2007pensionplanbulletin.pdf invested in equities. In addition, 401 (k) participants may hold equities through balanced funds or company stock?see Figure 30 for the a no bout equit 30y p fun ercdes t nte of nds patro tic fa ip ll aa nt s s s w ala itr h mo y incrre e a th ses. an 30 ye ars of tenure (Figure 33). Note: The tenure variable is generally years working at current employer, and thus may overstate years of participation in the 401(k) plan. * Assets do not add to the total because of rounding. Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the distribution of 401 (k) plan account balances to equities. security indicated. e e e e e e e e e e e e e e e e e e e e e A e e e e eb b b b b b b b b b b b b b b b b b b b b b b b b brr r r r r r r r r r r r r r r r r r r r r r r r r re i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i.s o o o o o o o o o o o o o o o o o o o o o o o o o oebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 ebri.org Issue Brief • August 3, 2017 • No. 436 e r r r r r r r r r r r r r r r r r r r r r r r r r rg g g g g g g g g g g g g g g g g g g g g g g g g g a rIIIIIIIIIIIIIIIIIIIIIIIIIIc s s s s s s s s s s s s s s s s s s s s s s s s s sh s s s s s s s s s s s s s s s s s s s s s s s s s s u u u u u u u u u u u u u u u u u u u u u u u u u u report e e e e e e e e e e e e e e e e e e e e e e e e e eIssue B B B B B B B B B B B B B B B B B B B B B B B B B Br r r r r r r r r r r r r r r r r r r r r r r r r rief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief fr Brief o• • • • • • • • • • • • • • • • • • • • • • • • • •m A A A A A A A A A A A A A A A A A A A A A A A A A Au u u u u u u u u u u u u u u u u u u u u u u u u u th g g g g g g g g g g g g g g g g g g g g g g g g g ge • u u u u u u u u u u u u u u u u u u u u u u u u u u August s s s s s s s s s s s s s s s s s s s s s s s s s s EttttttttttttttttttttttttttB 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3R ,,,,,,,,,,,,,,,,,,,,,,,,,, I2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 E 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3, d7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 u2017 c• • • • • • • • • • • • • • • • • • • • • • • • • •a tN N N N N N N N N N N N N N N N N N N N N N N N N N ion o o o o o o o o o o o o o o o o o o o o o o o o o o..........................• a 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4No. n 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3d 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 R 436 e se arch Fun d © 2017 E mployee Benefit R esearch In stitute 55 4 51 58 3 57 10 2 59 17 7 56 50 49 13 8 28 53 23 21 35 6 5 31 52 54 12 24 48 43 36 39 33 32 38 42 34 25 19 47 30 45 16 40 26 27 11 37 29 15 20 46 44 14 18 22 41 9 Figure 23 Figure Figure 24 40 Figure 36 Average Asset Allocation of 401(k) Plan Accounts, by Participant Age and Investment Options Average Asset Allocation of 401(k) Plan Accounts, by Participant Salary and Investment Options Average Asset Allocation of 401(k) Plan Accounts, by Participant Age Among Figure 33 a a Figure 39 Figure 48 Many Recently Hired 401(k) Plan Participants Hold Target-Date Balanced Funds Percentage of account balances,a 2015 Percentage of account balances, 2015 Asset Allocation Distribution of 401(k) Participant Account Balance to Balanced Funds, by Tenure Recently Hired 401(k) Plan Participants With Two or Fewer Years of Tenure 401(k) Loan Activity Varied Across 401(k) Plan Participants Asset Allocation Distribution of 401(k) Plan Account Balance to c Percentage of recently hired participants, 2006, $3,902 GICs /Stable- Equity Target-Date Non-Target-Date Bond Money Company b a,b Figure 34 d Percentage of Percentage of Participants, account balances, 1998 and 2015 2015 Percentage of Eligible 401( b k) Participants With 401(k) Loans, 12.4% GICs /Stable- 8.9% Equity Target-date Non-Target-date Bond Money Company Balanced Funds Among Recently Hired Participants, by Participant Age 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, and 2015 Funds Funds Balanced Funds Funds Funds Value Funds Stock Asset Allocation Distribution of 401(k) Participant Account Balance to b by Participant Age, c Tenure, Account Size, or Salary, Selected Years $4,400 Investment Options, All Ages a,b Salary Funds Funds Balanced Funds Funds Funds Value Funds Stock Percentage of Account Balance Invested in Balanced Funds Balanced Funds Percentage of Recently Hired Participants, Holding Balanced Funds 2015 Figure 29 Equity, bond, money, and/or Company Stock in 401(k) Plans With Company Stock, by Parti 13. c 5% ipant Age 10.3% d 1996 2000 2002 2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 Tenure (years)Plans Without Company Stock, GICs, Zero 1–10% 11–20% or Other Stable-Value Funds 21–30% 31–40% 41–50% 51–60% 61–70% 71–80% 81–90% 91–100% Non-Target- a,b balanced funds Age Group 47.8% 22.9% 6.9% 10.3% 5.2% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 All 18% Average Asset Allocation for 401(k) Plan Participants Without 18% 17% 19% 18% 18% 21% 21% 21% 21% 21% $3,824 20% 18% Percentage of Participants, 2015 Percentage of Account Balance Invested in Balanced Funds 0–2 $20,000–$40,000 30.4% 1.8% 41.8% 1.8% 30.9% 1.9% 1.4% 7.2% 1.5% 8.8% 2.1% 7.8% d1.3% 1.3% 1.0% 55.4% Equity, bond, money, and/or Equity Target-date date balan- Bond Money GICs and Other Company 12.9% Age Group 10.3% 20s 48.5% 51.1% 63. Per6% centage of 64. Acc1% ount Balanc 69. e Inv 6% ested in C 72. om 0% pany Stock 70.8% 67.6% 68.1% 72.7% c Age Group Zero 1–10% 11–20% Equity Fund Balances, by Participant Age or Tenure 21–30% 31–40% 41–50% 51–60% 61–70% 71–80% 81–90% 91–100% >2–5 >$40,000–$60,000 32.4% 2.7% 40.3% 2.4% 29.9% 2.4% 1.8% 8.2% 1.8% 9.1% 2.2% 7.5%1.4% 1.5% 1.5% 49.9% c balanced funds; and GICs and/or funds Age 20s Funds 12% Total 11% 10% ced 11% funds 10% Funds 10% 13% Funds 13% 13% Stable-Va 13% lue Funds 12% S 11% tock 8% Age Group Zero 1–10% 11–20% 21–30% 31–40% 41–50% 51–60% 61–70% 71–80% $3,659 81–90% 91–100% 30s 47.9% 54.2% 59.6% 61.2% 63.0% 68.1% 69.5% 67.8% 67.5% 69.9% >$60,000–$80,000 44.0% 26.6% 7.8% 9.9% 6.7% >5–10 20s 27.4% 38.6% 1.4% 4.4% 1.4% 3.7% 1.4% 3.3% 1.1% 2.4% 1.3% 2.2% a 2.2% 2.1% 1.4% 1.7% 1.4% 1.7% 1.0% 1.8% 60.2% 38.2% other stable-value funds 45.3% 19.0% 5.4% 8.1% 2.0% 12.8% Percentage of account balances, 2015 30s 20% 19% 18% 20% 20% 20% 23% 23% 22% 11.6% 23% 23% 11.1% 22% 19% Group 1998 2015 1998 2015 2015 2015 1998 2015 1998 2015 1998 2015 1998 2015 20s 73.9% 5.0% 3.8% 3.4% 2.3% 1.6% 1.6% 0.9% 0.6% 0.4% 6.6% >$80,000–$100,000 40s Equity, bond, money, and/or 46.6% 52.47.5% 8% 57.8% 23.0%59.3% 7.9% 59.9% 65.0% 10.6% 67.2% 6.1% 65.6% 67.6% 68.3% >10–20 46.6% 6.9% 5.4% 4.6% 3.0% 2.5% 2.1% 1.6% 1.6% 2.3% 23.4% 30s 30.1% 1.9% 1.9% 1.9% 1.5% 1.5% 2.3% 1.4% 1.5% 1.1% 54.9% 40s 22% 21% 20% 22% 22% 22% 26% 26% 25% 26% 27% 26% 24% c $3,700 20s 66.9% balanced funds; and company stock 28.5% 7.4% 58.0% 48.1% 36.8% 9.9% 19.9% 5.1% 4. 3.6% 6% 4.0% 6.8% 1.1% 3. 5.7% 7% 0.9% 10.5% 20.1% 3.0% 30s 59.5% 12.2% 6.8% 4.6% 3.1% 2.3% 2.1% 1.5% 1.0% 0.7% 6.2% >$100,000 52.4% 18.4% 6.9% GICs 10.6% /Stable- 5.7% >20–30 50s 51.5%Target-Date 47.8% 8.3% 53.Non-Target-Date 4% 6.0% 58.0% 5.1%Bond 58.7% 3.3% 59.1%Money 2.8% 64.2% 2.3% 66. 7% Company 1.9% 64.5% 65. 1.9% 6% 67. 1.8% 0% 15.3% 40s 31.7% 2.1% 2.2% 2.2% 1.6% 1.6% 2.0% 1.2% 1.3% 1.0% 53.1% 50s 17% 17% 17% 19% 19% 19% 22% 22% 22% 23% 23% 23% 21% 8.4% 8.3% Equity, bond, money, and/or b 30s All 67.8% 37.0% 8.0% 47. 47.8% 8% 41.1% 22.9%6.7% 5.1% 6.9% 5.1% 4.10.3% 1% 1.6% 3. 5.2% 2% 1.4% 9.4% 2.1% 40s 53.6% 13.9% 8.1% 5.4% 3.8% 2.8% 2.3% 1.6% 1.1% 0.9% 6.5% >30 55.0% Funds8.5% Balanced Funds 5.7% 4.8% Funds 3.2% Funds 2.6% Value Funds 2.0% Stock 1.4% Other 1.3% Unknown 1.3% 14.2% 50s 60s 60s 33.0% 45.5% 2.1% 9% 50.1% 2.2% 9% 53.9% 9% 2.4% 10% 53.6%1.5% 10% 55.2% 11%1.7% 12% 60.7% 1.8% 13% 63.9% 13% 1.1%60. 14% 6% 14% 1.2% 63.9% 13% 0.9% 63. 13% 6% 52.2% balanced funds, company stock; and d $3,832 50s 51.4% 15.2% 8.3% 5.4% 3.8% 2.8% 2.3% 1.6% 1.2% 0.9% 7.1% All 40s Plans With GICs 64.5% 39.2%40.7% and/or Other Stable-Value Funds 9. 4.5% 7% 41.2%3.6%34.8% 3.3% 6.4% 2.3% 5.9% 6.8% 2.1%5.1% 2. 2.1% 4% 4.4% 1.5%1.3% 1.5% 8.0% 1.8%1.6% 38.5% Tenure (years) c Age Group 60s All 36.4% 47.6% 2.2% 52.7% 2.1% 59.9% 2.2% 60.9%1.4% 63.0% 1.6% 67.5% 1.7% 68. 7.5% 6% 0.8%66.3% 8.4% 0.9% 67.2% 0.8% 69.6% 49.8% GICs and/or other stable-value 60s $20,000–$40,000 54.2% 14.4% 35.8% 7.5% 4.9% 32.7% 3.4% 3.9% 2.5% 7.4% 2.1% 1.5% 1.4% 1.1% 13.8% 0.9% 7.5% 50s20s 0–2 60.5% 38.8% 73.3% 11.3% 6% 37.6% 10.5% 5% 31.1% 4% 3.3% 5% 6.4% 7%6.6% 1.3% 6% 10.2% 9%5.1.2% 9% 7% 3.7% 5% 6. 4.7% 7% 6%1.7% 3.9% 9% 6.5%9% 1.4% 1.7% 8% c All 30.4% funds 1.8% 1.8% 38.3% 1.9% 15.9% 1.4% 5.8% 1.5% 2.1% 5.6% 2.8% 1.3% 8.8% 1.3% 13.4% 1.0% 55.4% a Percentage of Account Balance Invested in Target-Date Funds Holding Target-Date Funds $3,893 c >$40,000–$60,000 >2–5 15% 37.2% 14% 12%28.2% 14% 15% 4.2% 15% 17% 8.5% 18% 18% 1.7% 18% 19% 13.1% 19% 17% All 30s 57.5% 69.1% 12.6% 7.1% 8.4% 4.8% 3.0% 3.4% 2.9%2.5% 3.1% 2.1% 1.5% 6.6% 1.1% 5.4% 0.8% 1.5%6.7% Plans Without Company Stock, and GICs, and/or Other Stable-Value Funds 60s 50.0% 34.5% 12.1% 31.6% 24.8% 6.8% 8.7% 16.0% 7.8% 6.4% 6.4% 13.3% 8.2% 1.8% 5.7% 0.9% Tenure (years) Zero 1–10% 11–20% 21–30% 31–40% 41–50% 51–60% 61–70% c 71–80% 81–90% 91–100% >$60,000–$80,000 >5–10 24% 41.7% 23% 21% Percentage of Account Balance Invested in Target-Date Funds 23.7% 22% 23% 4.6% 23% 25% 8.9% 27% 26% 2.0% 27% 28% 11.6% 26% 24% Age Group 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Tabu40s lation Age Group s from EBRI/ICI Parti 57.8% cipant-Directed Reti 9.4% rement Plan Data Col 4.3% lection Project. 4.9% 5.5% 9.1% 7.4% 1.5% All 64.8% 37.5% 9.1% 41.2% 34.1% 7.1% 5.7% 8.6% 4.9% 3.3% 4.6% 1.4% 8.6% 1.7% 0–2 40.3% 1.2% 1.1% 1.3% 1.0% 1.2% 1.9% 1.1% 1.1% 0.8% 49.0% a >10–20 27% 26% 26% 26% 26% 26% 29% 29% 29% 30% 30% $3,661 28% 27% >$80,000–$100,000 20s 43.9% 29.0% 22.6% 50.4% 4.6% 8.4% 9.2%4.9% 1.8% 2.0% 11.0% Age Group The analysis includZero es the 8.5 millio1–10% n participants in p11–20% lans with compan21–30% y stock at year-en31–40% d 2015. 41–50% 51–60% 61–70% 71–80% 81–90% 91–100% 50s 47.0% 9.1% 5.8% 6.5% 10.4% 10.5% 9.2% 1.5% 20s 29.4% 32.4% 47.5% 50.5% 55.3% 59.3% 5.59. 5% 4% 5.7% 58.6% 60.6% 64.0% Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. >2–5 41.9% 1.9% 1.6% 1.7% 1.5% 1.5% 1.9% 1.2% 1.3% 1.3% 44.2% b 30s 43.8% 34.7% 6.6% 6.5% 2.8% >20–30 25% 26% 25% 24% 24% 25% 27% 26% 26% 28% 28% 26% 25% >$100,000 49.9% 17.6% 3.6% 8.7% 1.9% 11.8% Row percen a tages may n 60s ot add up to 100 percen 39.7% t because of rou 8.3% nding. 7.4% 8.8% 15.7% 8.8% 9.5% 1.7% 20s 36.0% 0.9% 0.9% 1.0% 0.9% 1.1% 2.1% 1.2% 1.2% 0.8% 53.9% The an30s alysis is based on28. sam 5% ples of 1.2 m 35. illio 5% n participant44. s wi3% th two or fewer years of ten 48.3% ure i 49. n 1998 an 8% d 4.8 m 55. illio 9% n participa58. nts w 7% ith two or fe58. wer2% years of tenu 59. re i7% n 2015. 61.0% >5–10 49.3% 40s 3.3% 2.5% 52.2%2.3% 23.4% 1.8% 6.4% 1.6% 8.0% 1.7% 3.7% 1.4% 1.4% 1.6% 33.0% $4,089 > d30 13% 16% 15% 17% 17% 18% 19% 19% 19% 20% 20% 18% 17% All 45.3% 19.0% 5.4% 8.1% 2.0% 12.8% b All 30s 39.0% 50.8% 1.2% 1.3% 9.0% 1.4%5.5% 1.1% 6.2% 1.2% 9.3% 2.1% 4.5% 9.0% 4.1.3% 8% 1.4% 8.5% 0.9% 1.6% 49.1% Minor investment options are not shown; therefore, row percentages will not add to 100 percent. Percentages are dollar-weighted averages. 50s 49.7% 20.9% 6.7% 10.9% 5.1% 40s 27.4% 34.6% 42.6% 46.6% 47.2% 52.8% 55.8% 54.8% 57.7% 57.8% >10–20 59.2% 5.1% 3.4% 2.7% 2.0% 1.7% 1.5% 1.2% 1.3% 2.0% 19.8% Account Size c Plans With Company Stock 60s 43.6% 19.9% 7.3% 13.9% 7.7% 40s A target-date fu Tenure (years) 42.2% nd typically rebal 1.3% ances its portfol 1.3% io to become less focu 1.5%sed on growth 1.2% and more focused on 1.2% income as i1.8% t approaches and passes th 1.0% e target date of th 1.1% e fund, wh 0.8% ich 46.5% >20–30 50s <$10,000 65.7% 28.1% 5.9% 12% 35.3% 11% 3.5% 42.11% 7% 2.8% 12% 46.2% 11% 2.0% 46.8% 12% 1.8% 16% 52.4% 16% 1.6% 55.5% 15% 1.4% 53. 15% 6% 14%57. 1.5% 0% 13% $4,167 55. 1.5% 11% 9% 12.5% c $20,000–$40,000 33.2% 14.8% 5.0% 7.2% 4.1% 30.8% is usually included in the fund’s name. Plans With GICs and/or Other Stable-Value Funds 4.0% 3.9% 50s 0–244.1% 69.0% 1.3% 1.2% 11.0% 1.4%5.3% 1.1% 4.2% 1.2% 1.5% 1.5% 1.9% 0.9% 1.0% 5.5% 0.7% 1.6% 45.6% $10,000–$20,000 26% 23% 22% 26% 25% 26% 28% 29% 30% 30% 30% 28% 26% >30 69.1% 6.1% 3.4% 2.6% 1.9% 1.6% 1.2% 1.0% 1.0% 1.0% 11.1% d 60s 26.1% 32.3% 39.1% 41.8% 43.1% 49.0% 51.5% 48.9% 55.4% 51.0% GICs are gu >$40,000–$60,000 aranteed investment contracts. 30.0% 23.9% 4.8% 7.0% 5.9% 22.1% 20s 32.6% 40.6% 9.0% 6.2% 0.9% 3.5% >2–5 71.0% 8.9% 4.4% Figu 3.1% re 35 2.2% 3.3% 5.6% 1.5% 60s 48.6% 1.3% 1.0% 1.2% 0.9% 1.0% 1.2% 0.6% 0.7% 0.6% 42.8% >$20,000–$30,000 26% 25% 22% 27% 26% 26% 28% 29% 30% 31% 31% 30% 28% All 50.5% 3.2% 2.3% 2.1% 1.6% 1.5% 1.6% 1.2% 1.2% 1.4% 33.6% Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security indicate $3,889 d. All 30s 28.3% 34.3% 44.4% 45.0% 47. 28.1% 9% 49.8% 5.3% 55.2% 6.7% 57.3%1.4% 56.3% 5.8% 58.9% 59.7% >$60,000–$80,000 31.6% 26.2% 4.6% 7.3% 5.2% 18.2% 4.3% 3.8% a b >5–10 62.8% 9.1% 4.7% 4.7% 4.6% 5.9% 6.7% 1.5% >$30,000–$40,000 25% 25% 23% 26% 26% 26% 28% 28% 29% 30% 31% 30% 28% All 40.3% 1.2% 1.1% 1.3% 1.0% 1.2% 1.9% 1.1% 1.1% 0.8% 49.0% Many Recently Hired 401(k) Plan Participants Hold Balanced Funds 40s 51.0% 19.4% 4.9% 7.4% 1.9% 7.9% >$80,000–$100,000 35.2% 23.1% 4.4% 8.2% 5.0% 16.8% Percentage of Account Balance Invested in Non-Target-Date Balanced Funds >10–20 48.7% 9.2% 5.2% Holding Non-T 7.0% arget-Date Funds 9.5% 10.0% 8.6% 1.8% >$40,000–$50,000 24% 25% 23% 25% 26% 25% 27% 27% 27% 29% 30% 29% 28% a b 50s 46.3% 17.4% 5.3% 8.4% 2.1% 13.3% Percentage of recently hired 401(k) participants holding balanced funds, 1998–2015 $3,972 >$100,000 41.6% 17.5% 3.4% 9.1% 4.8% 14.8% Percentage of Account Balance Invested in Non-Target-Date Balanced Funds 3.9% 4.1% Age >20–30 Group 2006 38.5% 2007 9.0% 2008 5.9% 2009 7.7% 2010 2011 12.3% 2012 13.2% 2013 11.7% 2014 1.8% 2015 Tenure (years) >$50,000–$60,000 Zero 1–10% 24% 11–20% 24% 22% 21–30% 24% 25% 31–40% 24% 41–50% 25% 26% 51–60%26% 61–70% 28% 29% 71–80% 28% 81–90% 27% 91–100% 60s 38.1% 16.5% 5.9% 9.2% 2.5% 20.2% Age All 36.8% 19.9% 3.6% 6.8% 5.7% 20.1% >30 >$60,000–$70,000 29.9% 23% 8.3% 24% 22% 7.6% 23% 24% 8.2% 23% 25%18.7% 25% 25% 14.2% 27% 11.3% 28% 27% 1.7% 27% 0–2 Age Group Plans With Company Stock Zero 88.7% 1–10% 1.4% 11–20% 1.2% 21–30% 0.9% 31–40% 0.5% 41–50% 0.4% 51–60% 0.3% 61–70% 0.2% 71–80% 0.2% 81–90% 0.1% 91–100% 6.1% 20s 22.5% 21.2% 18.5% 16.7% 15.8% 14.0% 12.8% 10.1% 8.6% 9.7% Figure 41 Group 1998 1999 2000 2001 2002 d 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $3,619 d Plans With Company Stock and GICs 5.1% 4.1% and/or Other Stable-Value Funds >$70,000–$80,000 20s 26% 23% 22% 21.4% 22%48.4%23% 22%5.0% 24% 24% 4.5% 24% 1.4% 26% 27% 27%16.2%26% >2–5 20s All 90.3% 88.5% 50.8% 1.1% 1.9% 0.8% 9.0% 1.4% 0.6% 1.1% 5.5% 0.3% 0.5% 6.2% 0.3% 0.4% 9.3% 0.2% 0.3% 9.0% 0.2% 0.2% 0.2% 8.5% 0.2% 0.1% 1.6% 0.2% 6.0% 5.2% 30s 22.5% 21.9% 18.2% 16.2% 15.1% 14.0% 12. 6% 11.2% 11.9% 10.4% 20s 27.0% 28.3% 27.1% 27.3% 32.7% 35.1% 38.9% 43.5% 48.5% 51.1% 63.6% 64.1% 69.6% 72.0% 70.8% 67.6% 68.1% 72.7% Recently Hired 401(k) Participants Tend to Be Less Likely to Hold Company Stock 30s 35.4% 31.4% 3.1% 4.4% 2.9% 18.3% $20,000–$40,000 >$80,000–$90,000 23% 34.7% 23% 21% 20.1% 21% 23% 3.8% 21% 23% 4.8% 23% 23% 1.8% 25% 26% 13.8% 26% 13.2% 25% >5–10 Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. 86.6% 2.9% 2.1% 1.5% 0.7% 0.6% 0.5% 0.3% 0.3% 0.3% 4.4% 30s 89.6% 1.4% 1.1% 0.9% 0.5% 0.4% 0.2% 0.2% 0.2% 0.1% 5.4% 40s 21.3% 21.1% 17.7% 15.8% 14.4% 13.9% 13. 3% 12.4% 14.8% 12.0% $3,785 30s 29.0% a 31.0% 40s 28.3% 26.5% 33.1% 36.2%41.3% 39.8% 20.3% 42.8% 47.9% 3.1% 54.2% 59.6% 5.7% 61.2% 4.1%63.0% 68.1% 69.5% 20.0% 67.8% 67.5% 69.9% Percentage of recently hired participants offered and holding company s 4.0% tock, by 3.4% participant age,1998–2015 >$40,000–$60,000 >$90,000–$100,000 22% 35.2% 22% 21% 20.8% 20% 22% 5.6% 20% 23% 5.7% 22% 22% 2.0% 24% 26% 12.8% 25% 14.1% 25% Row percentages may not add to 100 percent because of rounding. Percentages are dollar-weighted averages. >10–20 84.0% 4.1% 3.1% 2.3% 1.1% 0.8% 0.6% 0.3% 0.3% 0.3% 3.1% 40s 88.0% 1.5% 1.4% 1.1% 0.6% 0.4% 0.3% 0.2% 0.2% 0.1% 6.3% 50s 37.2% 17.2% 3.9% 7.5% 5.9% 20.6% b 50s 21.4% 20.9% 17.6% 15.4% 13.8% 13.5% 13.0% 12.4% 13.3% 12.4% 40s 30.5% 33.6% 30.8% 27.9% 33.7% 35.7% 39.8% 42.1% 46.6% 52.8% 57.8% 59.3% 59.9% 65.0% 67.2% 65.6% 67.6% 68.3% >$100,000–$200,000 22% 20% 19% 18% 19% 18% 19% 19% 19% 21% 23% 23% 22% A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approa >$60,000–$80,000 35.3% 20.3% 5.8% 5.2% ches and passes the target date of the fund, which is 2.4% 12.7% 13.8% Age Gr>20–30 oup 1998 199982.4% 2000 20 4.8% 01 20023.5% 2003 20 2.8% 04 20051.4%2006 20 1.0% 07 2008 0.7%2009 0.4% 2010 2011 0.3% 2012 0.3% 2013 2014 2.5% 2015 60s 32.1% 16.7% 3.8% 8.7% 9.2% 20.4% 50s 87.6% 1.5% 1.5% 1.3% 0.6% 0.5% 0.4% 0.2% 0.2% 0.1% 6.2% usually included in the fund’s name. $3,858 >$200,000 18% 15% 13% 13% 13% 12% 13% 12% 12% 13% 15% 14% 14% 50s 30.9% 34.9% 60s 32.1% 19.8% 29.2% 20. 33.9% 1% 35.5% 16.7%40.3% 14.43 0% .3% 47. 13. 8% 2% 53.4% 13.1% 58.0% 13. 58.7% 9% 2.8% 59.13. 1%0% 64.2%13.1% 66.7% 64. 13.5 5% % 65.6% 67.0% >$80,000–$100,000 36.1% c 18.9% 7.2% 5.1% 5.6% 2.6% 13.1% 12.9% 20s >30 60.8% c 61.1% 82.4% 60.5% 58 4.7% .1% 53.9%3.4% 49.6% 49. 2.7% 8% 45.4% 1.4% 40.0% 35. 1.0% 4% 32.9% 0.7% 32.3% 30. 0.4% 3% 26.2% 0.3%23.0% 2 0.3% 7.9% 26.9% 2.8%24.4% Plans With Company Stock and GICs, and/or Other Stable-Value Funds 60s 86.5% 1.5% 1.5% 1.4% 0.7% 0.7% 0.5% 0.2% 0.2% 0.2% 6.6% GICs are guaranteed investment contracts. Salary Range >$100,000 39.9% 15.8% 6.3% 5.5% 2.9% 11.4% 11.6% 60s 28.4% 34.9% All 33.2% 21.9% 29.1% 21. 30.2% 3% 30.7% 18.0%36.3% 16.41 1% .6% 45. 14. 5% 8% 50.1% 13.9% 53.9% 13. 53.6% 0% 55.11. 2%4% 60.7%11.8% 63.9% 60. 11.6 3% % 63.9% 63.6% d 20s 27.9% 46.3% 6.1% 3.3% 0.8% 2.7% 8.7% All 86.3% 2.9% 2.2% 1.7% 0.8% 0.6% 0.5% 0.3% 0.2% 0.2% 4.4% 30s 61.9% 62.3% 61.6% 60.0% 57.2% 53.3% 52.3% 47.6% 43.6% 40.4% 37.4% 36.2% 33.6% 30.0% 26.4% 30.7% 29.2% 27.4% The analysis includes the 14.1 million participants with no equity funds at year-end 2015. All 88.7% 1.4% 1.2% 0.9% 0.5% 0.4% 0.3% 0.2% 0.2% 0.1% 6.1% $20,000–$40,000 18% 17% 13% 19% 20% 19% 24% 22% 25% 25% 21% $3,973 23% 22% 3.7% All 38.3% 15.9% 5.8% 5.6% 6.4% 2.8% 8.8% 13.4% All 28.9% 31.3% 29.1% 27.4% 33.0% 35.4% 39.3% 42.8% 47.6% 52.7% 59.9% 60.9% 63.0% 67.5% 68.6% 66.3% 67.2% 69.6% Source: T30s abulations from EBRI/ICI Participant-Directed Reti 39.3% rement P28.2% lan Data Collection P5.4% roject. 4.0% 1.6% 5.1% 11.2% Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security indicated. The tenure 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% 26.7% 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% 27% a a Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. 40s 44.1% 17.5% 5.9% 4.8% 2.1% 7.2% 12.9% Source: Tabulations variable is generally years working at current employer, and thus may overstate years of participation in the 401(k) plan. from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. The analysis includes the 26.1 million 401(k) plan participants in the year-end 2015 EBRI/ICI 401(k) database 401k(k) database A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on i . ncome as it approaches and passes the target date of the a 50s 57.6% a 58.8% 57.4% 57.9% 53.9% 51.2% 49.5% 45.2% 42.3% 39.6% 37.8% 37.6% 34.4% 31.3% 26.9% 30.8% 29.1% 25.7% The analysis includes the 4.8 million recently hired participants (those with two or fewer years of tenure) in 2015. >$60,000–$80,000 18% 23% 20% 24% 24% 24% 26% 23% 22% 25% 22% 24% 23% b Minor investment options are not shown; therefore, row percentages will not add to 100 percent. Percentages are dollar-weighed 50s 38.4% 13.3% 5.9% 6.1% averages. 2.8% 13.1% $4,239 13.9% a 6.1% 3.3% fund, which is usually included in the fund’s name. The Row percentages may not add to 100 percent because of rounding. analysis includes participants with two o r fewer years of tenure in the year indicated. b b Row percentages may not add to 100 percent because of rounding. >$80,000–$100,000 17% 21% 17% 22% 21% 20% 23% 20% 19% 21% 19% 21% 20% 60s c 54.1% 55.5% 60s 53.6% 55.7% 51.0% 49.5% 31.8% 47.8% 12.9% 43.9% 40.4%5.4% 38.4% 38.6.4% 7% 40.5% 4.3% 36.8% 18.6% 30.8% 26.7% 13.8%30.0% 27.6% 23.3% Salary information is available for a subset of participants in the EBRI/ICI database 401(k) database. b A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approa Note: The analysis includes the 4.8 million recently hired participants (those with two or fewer years of tenure) i ches and passes the target date of the fund, which is usually included in the fund’s n 2015, the 4.1 million recently hired participants in 2014, "Balanced funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment prod uct primarily invested in a mix o f equities and fixed-inco me securities. c c A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approa Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. ches and passes the target date of the fund, which is A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approa >$100,000 14% 16% 13% 16% 14% 14% 16% ches and passes the target date of the fund, which is usually included in the fund’s 14% 14% 16% 15% 16% 15% All 60.5% 61.0% 60.0% 58.7% 55.3% 51.6% 51.0% 46.3% 42.0% 38.7% 36.2% 35.5% 33.0% 29.3% 25.7% 29.9% 28.3% 25.7% name. the 4.4 million recently hired participants in 2013, the 3.6 million recently hired participants in 2012, the 3.4 million recently hired participants in 2011, the 3.2 million recently 6.3% 2.6% $4,359 a usually included in the fund’s name. Sourc Minor investment options are not shown; therefore, row percentages will not add to 100 percent. Percentages are dollar-weighted e: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. averages. name. hired participants in 2010, the 3.1 million recently hired participants in 2009, the 4.0 million recently hired participants i n 2008, the 3.8 million recently hired participants in So urc Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment produc e: Tabulations from EB RI/ICI P articipant-Directed Retirement Plan Data Collection Project. t primarily invested in the security indicated. The tenure variable is d 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 GICs are guaranteed investment contracts. Note: The tenure variable is generally years working at current employer, and thus may overstate years of participation in the 401(k) plan. Note: “Funds” include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security indicated. 2007, and the 2.8 million recently hired participants in 2006. Note: The analysis includes 401(k) plan participants with two or fewer years of tenure in the year indicated and in a plan offering company stock as an investment option. generally years working at current employer, and thus may overstate years of participation in the 401(k) plan. 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. "Funds" c include mutual 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.