401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2016

Executive Summary

The bulk of 401(k) assets were invested in stocks. On average, at year-end 2016, 67 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 of assets were in fixed-income securities such as stable-value investments, bond funds, money funds, and the fixed-income portion of balanced funds.

More 401(k) plan participants held equities at year-end 2016 than before the financial market crisis (year-end 2007), and most had the majority of their accounts invested in equities. For example, more than three-quarters of participants in their twenties had more than 80 percent of their 401(k) plan accounts invested in equities at year-end 2016, up from less than half of participants in their twenties at year-end 2007. Overall, more than 90 percent of 401(k) participants had at least some investment in equities at year-end 2016.

About two-thirds of 401(k) plans, covering about three-quarters of 401(k) plan participants, included target-date funds in their investment lineup at year-end 2016. At year-end 2016, 21 percent of the assets in the EBRI/ICI 401(k) database were invested in target-date funds and more than 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 2016, 71 percent of recently hired participants held balanced funds in their 401(k) plan accounts. Balanced funds made up 45 percent of the account balances of recently hired 401(k) participants at year-end 2016. A significant subset of that balanced fund category is invested in target-date funds. At year-end 2016, 38 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. Six percent of 401(k) assets were invested in company stock at year-end 2016, the lowest share observed in the database. This share has fallen by 69 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 2016, in plans offering company stock, less than one-quarter of recently hired 401(k) plan participants held company stock, compared with about 40 percent of all 401(k) participants.

401(k) participants were a bit more likely to have loans outstanding at year-end 2016 than at year-end 2015. At year-end 2016, 19 percent of all 401(k) participants who were eligible for loans had loans outstanding against their 401(k) plan accounts, slightly up from 18 percent at year-end 2015. Loans outstanding amounted to 11 percent of the remaining account balance, on average, at year-end 2016, down 1 percentage point from year-end 2015. Loan amounts also edged down a bit in 2016.

The year-end 2016 average 401(k) plan account balance in the database was 18 percent higher among consistent participants in the database in both 2015 and 2016. To understand changes in 401(k) participants’ average account balances, it is important to analyze a sample of consistent participants. Among all participants, the average account balance in the year-end 2016 database was 3 percent higher than the average account balance in the year-end 2015 database. However, this largely reflects the changing composition of the sample, rather than the experience of typical 401(k) participants in 2016. 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 2016, participants in their forties with more than two to five years of tenure had an average 401(k) plan account balance of about $38,000, compared with an average 401(k) plan account balance of more than $287,000 among participants in their sixties with more than 30 years of tenure.

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For e , or q puit e fe rc y w e efun n xa etra m d g ys he e e pa le o rfs of , 2015 ld p st aoc e rttq ie c kuit nu is ( pa ie ra n es t s m t sha ,hr e d 2 oug a 0 a su 1 c6 c h com ro eunt d b yb p a tahe la ny nc S& st eo s of Pc k 50 , le b 0a ss tla ot n ta ha cl er n $ d e tfun ur 10,00 n ds, 0 re tha re fe ce t rre ntly had d b to be e e a en s n e th asd e tjus a g bli lite d she e d p fro da ( th. m 73 t B he peec rc a nu us ent mb e o d ef irs a coll us f 401( a sc ion tivk se ) o -pty f aa rtici pses e p p t la aan nllts so c in a ac tion e tua xislte us lync ua ree p ll o y in rt fo 2015 ec dus in o w the n ethe r e For e p sm tearc b 5500 li es nta heg d fili e a ng o ftf e sth r to 1996 e e pxc ortfo lud [tae li bo :ula inv tion este s o df research and 51–100 editorial staffs. Any b,v ciew1 s e 1,5xpress 85 ed in t 8hi 21s r ,27 e8por Pa t rta ic rie p atnho t $ A5 se g6 e, G 2of 9 ro 9u ,t7 p he 15 ,a 9 cut 99hors, and sh$ ould 68,5 5not 1 be aescribed to a plan loan provision to participants (Figure 44 Pe ). rce The ntage loa A o v fe n fe A ra cc g ao e tu ur ne t Bw aa las nc m 20 eor 13 Ine v ecso t20 e m d 15 m inonl Eqy u 20 ita y 16 ss Foc unia dsted with large plans (as d bow alan n th ces in c e aveom 101–500 rag pea ny ac csoun tock t , bia nc laluding nce 4. 3.Thi 3 % 60 s c pou erc 2 ld e 5 79% nt .4 the % wn b ho ehe m ld is 7 .t 0 none a %kenly (Fi dgeur 1sc 0e .0 r ibe % 34) d. a On s a 3.7 ct % n ind he otic he atr 4 ion th .ha 1%nd, a t6 b p ae lar 0n c .3 e c% e ns a t ha re d more Age G rG ou ro pup Funds Funds Funds Funds Funds Value Funds Stock Other Unknow n Equities Russell 2000 Index Figure 44, Percentage of 401(k) Plans Offering Loans, by Plan Size, 2016 ............................................................ 42 37 percentage of their account balance indicated in company stock, 1999–2016 Bloom5b 0 80 e % r % g Data. New York: Bloom Age Gb roe ur pg L.P. >0–50 percent >50–90 percent >90 percent b a A U. nd ull cS. tiv eSa t iD tins y e v p in 200 i/2 ng. 40 ar00 t1( m ” 5pe k N e8.” )nt B p E ns a of R Wor Irnv ionp tic Le a ip s blta or a k m nt ing nbul , es’ n Etm P a le C a v pte p om loy in.pd r ea rg p , ee a e no. f n a B y c e 19 c Ine ount ns 07 fit tits Se 1 (Ma ut be a la c Re ur n yc ) sea it . eys, it C r A acm d h m is bPr ini e iidg m rs spe p te ror a , c tMA tion. taiv nt e : N t2 15 o 01 ata , ion 8b. na no. lay l B P ze 2, a riv ur aa nd etsa e au o m E PB e pRI f Ec ns le ion P of Ionomi ssc ue onsi la B n B crst ie Re e ull fn , sea e tno. tp in Hi a rc r33 th. icst 5 ip A oa vrnt a icila a s. l ble 101–250 8,925 1,4F 06 ig ,4u 71 re 48 $89,546,762,890 $63,668 in U.S (1) S e .e q ind e De uit Fi iv ie pid g a sur rtm u , a the els e 21 nt eg li (M li in g o d ib f e e H L d le o p a i a ld a b to n th o e r A n pg g For ae e e rticip tn : m a e 4l. ra 5 5500 a 2017a ll Y ty e e a re in rs d fla )a e ( ta c the 401( ts fo the yr k e2015] )a d rp-e la ecnd n li) ning w , 2015 o ho r ( p ha 2) eEB r d c the eR no nta I/ t eICI mp g ee le c 401( loy ote f e e dq e k to uiti )o nly d ha e as ta v rin e b e c a the the e sntly e ir up ap e ojoi d mp rtf ane to leo li)d y o . e th a rs se ma it pa la k pn e p ro (cw oantrib he che the sution ra nd on sp his ; aas n s od e r s( he 2)r 501–1,000 44.175% % 24.4% 6.8% 9.1% 3.5% 4.5% 1.4% in 20 C or inde han bot x) 16 h. ge inc , Se c sro e in m vaesed p nt As ar ye -s 12 fi d e v t w .0 e All it pp h eeoca r5 rcc 3 ee nt p n te t io of rd cn ur ep nt Be ing ar of titc20 we ipa pa 16 rn e tti, n c s in t w ipa Y hil e ne a he ts in t rb- iond rEn tw he d s ( ent i2 ra 0 ie ts m w 15 s w ent e a it aie su hout nd sr w e Y d it e e h b b q a y uit r e t-he y tE w nd fu e Be nds a n fiv 20 rcla he 16 y es ld a C nd taap r10 it ga e l ty -U d e.a aSt r.e s of Afun ggtr d ee nu sg — arw tee hic Bond h te nd the officers, t Sar la ury st R ea ens, or ot ge her sponsor 20s s of ZerE o Pe BRI rce, nE taB ge R o 30s If- A EcR cF, o o1–20% unt Ba r tlhe ancir e Is n 40s v te asff tes. N d in> Eq e 2it 0 u% he itie – s r8 E 0% B 50s RI nor EBRI- >E 8RF lob 0 60s % bies or takes measured by the number of participants in the plan). 11% About 90 percent of plans with more than 1,000 participants d Fie gcur lin e A ing, ss 19 20s e, t20s b Ratio A ut lloc 12% aca to tua ion o f lly 4 28 0 .8 1 w f 4 % (k) ould 12% 01 P( l30% k an t 4e ) 7 .ll us not 6 P Acco % la 1% n P 12% 30% u an r 7 hin t .t 6ic Balan %ipa g a 28% n btou s W 12% ce 5t .2 t % c it o ons hou 24% Sala istt e E 1ry .nt q 0% uit 14% fo ly 25% y r P p a Fu r articip tnds ic 1ipa .29% 3% ................................ ting ants w 26% in Their or 3.9k %ers. S 24% 6 im 30 .2s, ila % by rly ................................ 26% , Te the 1n .3u % are g 25% g ....................... reg 79 a.t 5e % 23% avera ..... ge 22 28 than 80 $p 8e 0 1r,0 c 00 e 0nt 0 of their account balances invested in company stock. 180 20s 9.0% 8.2% 3% 82.8%$76,293 13% Inve ? s tme C nt o m C3% om pan pa yny st o In cst ki tis u te eq . uit 20y18 in t . “he The pla US n’s sponsor Retirement (t he Ma rekm etp, loy Fire srt) . Qua rter 2018” (June). Available at 251–500 1,001–5,000 44.7%4,012 21.7% 1,411,5 4.2 98 % 8$ .2 8 % 5,956,26 37 .3 ,2 % 95 5.6% $60,903 0.2% Age Group Zero 1–20% >20–40% >40–60% >60–80% >80–100% $75,358 no the ownve n ta ors r g te thro ed t d fo ug arme te h , a w ruto hic em ma h ploy istic us ee eua nr s w ll oy ll ho me ind ha nt) icd a. t no e In dt in e (ith ath t e the e r fu e v tim nd ent, ’s e th na joe b me F te o .9% nu rm Th re e 5500 w tao rg uld fili et ng no dast te w a c g ec e rura e ne sra u te b llly mit y re ist fe tle he dc ) t inc daacte urre tua alt d401( w the hic k h b )r the p elaak n ty -in pic se arv l ice Ta a (Oc t b w tle ob ws a w e.nb rnd A ). m e A G ong rv.or ra ailp g aa hs /pa bll p le 19 p a ae r t 75 t ric w s– /w1 ipa w 20 wnt 1 90 .ic 5 s, i.or 71 (Ve the g r/pd si aon vf/ erp 1.0 ae gre 1 ) . 5 aW -c02 ca oun sh .pd ingt tf b aa o nd la n, nc w De w C w in t : .e U.h b S. e ri.or D ye eg a pr /pd a -r etnd m f/b e20 r nt ie 16 fs of p L d da f/ ab tE a or B bRI , ase E_m IB w p_1 loy as 0e 3 -e p B ee rc ne ent fit s Se highe cu rr t itha y n 25% 401(k) Loan Activity Varied Across 401(k) Plan Participants All 56.6% 4.5% 23.0% 16.0% I ( to nde Fig bur ex) highly e inc 14r)e . a c Old sed onc e e r2.6 nt wor r a pt k ee e rd c rs d ein e nti spla (q Fi uit gy ur y a e secu s 7 a simr ilit a nd ie r s fo p8) at. tre r th n. atFor ag e e xa grm oup ple — , a 59 s t p he erir c e onl nt yof eq puit arty ic iinv pae nt st s in t ment he $73, . A irno 357 six the tiers w 9 p ite h tw rcen o t or of $20,000–$40 12% ,000 30s $7,319 12.5 $% 21,164 9$ .0 5% 8,705 $ 79 82 .4 ,3 % 48 $68,854 positions 70 30s % on 30sspecific 4p 1.olic 0% y pr22% op 33.5osa % ls. 20% E5B .9R %I inv 22% ite 5s c .3%om 19% me 1nt .7% 19% on this 2r .25% 3 e% search. 22% 5.1% 20% 4.4% 18%0.9% 19% 79.1% 17% 38 inc In 4 Fig0 lude ur tr1 eo 45 d( duc k a , P loa ) 501–1000 erce Pl t>ion n p 5,0n 0 ra ov 0 t ag n ise ion, As of Eli cos m gib pe a le 4 rt e 4 Al d 30 . 1w 1 %it (k 2loc ,h 5 ) 330 P 1lan 1p 9a e P .6rt % c ar eion n ticip t1 of ,77 an , p 9 Acc ,la 6 9 ts .5 ns 05 % W w itit h 401( h 10 o ou 7 $.n k 1 5r) 1 % t fe 5 P, B la 4 w 3n Lo e 1,r0a 2 $7 1 p .7 9 a al 2, ,% r ns 2a t 38 6 ic 7 , 3 n ip ba yc nt Pe la 6 s. P .5 n Size s %a, rtic a $, 6 ipa 4n 20 ,8nt d 5 16 8 1 . Lo loa 9 ................... %n aa ctiv n it y 42 account balance would tend 67% to be pulled down if a large number of older participants retired. In addition, changes in C Br ha ad nge y, 40P s in a % eter 2. 3ss .8 20 % et10 a. lloc “Me ata iosu n o ring verRe tim tiree m ree fle ntc tRe inv sou esrtc m ee A nd t e pq eua 11% rfor cym .”a Jou ncer, na 11% pa l o rtif P cipa ens ntion E s’ 11% reb ca onomi lancing, cs a and nd Fi ch na ange 11% nces in t 9, no. he 2 w U. p p inv a e w S. For rticip riod ew sto D .ic ae e ra n i.or p stion. fo ta a ar r na g b tw m li /r ly sho e e h snt sea e is m d tra of b tha rc 20s yc h L k the t a /s ing fu btor ir a nd t t, p s/ a lE rg is a rm e n e d t 6tp ir ( e .- 7 s loy s d e % e ig a m etn e e e U.S e e nt fu d B .nd w e De ne o uld us p 0 fit .a e 6 s Se rtme % re and acc h nt the ur re o ittir f y pL e e A 0 a rs m .d b 9% im e o snt r, te ini nc Emp asg ter e a o loy a tf ion. nd the 2 e.e 4s % ito 2 B r 01 e us pne ma e 2b. fit fro k s ing P m Sr1 e iv 2 c 2007 .n a 8 urity e % te w P inv te Ad hro ns e minis s ug ion P tm 7h 6 e .tra 2009, 6 nts la %tion n B in ull s the 2012a ee e tfu Cop in, A nd fo e.b la r st nd fu rrthe a 20 ct 11. of r Asset Allocation to Equities ............................................................................................................................28 Age Group A 20 d09 mini _No str t33 he ation (Feb 5_ av Ke Up ra 2d 3 g .a 2 e r% u t e a a.p crc yd ount )f. Av a bil a 40s a la bn le c e a tin t ww he w .d yeol.g ar- 1e 4 ov .nd 2% /s20 ite15 s/de da fa tult aba /fil 8 se. .1e % s/ Heow bsa ev /reersea , this rc 77 he la .7% r rg s/esly ta rte isfl tie cc s/ ts t rethe ire c m he ant nging - 160All Perce4 n3t.a 5g %e of E2 li1 g .i 3b % le 401(k)6 .P 1% articipant8s .2 W % ith 40 3.1 1( % k) Loans 5.,8 % 5.9% Figure 20, 40 1,01( 01k –)2 ,P 5la 00n Assets Are Conc1e ,8 nt 87 rated in Equit 2,91ie 9,s 2 1 ................................ 9 $208,870,192................................ ,012 $71,550..................... 23 p feaw rte ic ripa ye40s nt ar 40s s in s of >$t 4 the e 0,nu 0ir 00 rt 4 – e w 8 $ .6 ha 2e 0 % nt ,0 d 0 ie 0as c16% c w 2ount 2it .2hout % b $a 15% 1e l6a q ,5 6 n uit .0 9c 4 % eys of f16% unds ha le 6ss .6% $ t3 h 13% d 4a ,7 e n $ 9q 9uit 210 .3% y,000 13% expo . I su $ n 3 7.18% r 9 3 ce , % ont 7 9 only 7rast t16% h ,5 r .a 8 oug b %out $h non 11 15% 8 1,5 p 74 0 .9 7-% tearrcg 13% ee nt t- 0 d of .a 9 $% 1 tte 0hose 13% 0 b ,9a 2la 97in t n 5.c 3e % 12% he d fun ir sid xt s, ies 22.7% As vars ie edt m Aod lloe 80 cst aly tio bns o y plaf n si Re ze c, ernt anging ly Hire frod mP 16 ar p ticipa ercent nt of Fi s g p u ar re tic 3 ipa 2 nts with loans outstanding in 401(k) plans with 26 to the sa ? m$ pM 7 le 0 o ,of 0 n0ey 0 re f co urn dd ke se c ponsi ers st and of ctha honge se fun s in t ds d hee si set of gnedp tla o ns m afor int a w in a hich stta he ble y k sh ee ap re r e pc ror ice d. s a lso can influence the change E Ov For de Bta RI ea ril / n )tI.he C aTh n I a p c is ly ra o s s css is t ha t o hr ng sec f e ta ee t rion o in g d et e me c -a d f p tho d atee la s, d fns o un 40 log in t d1( yus k re he )e s p a ults d lmo aans t a in ng b ha a a d se. v d ee r faul a b H ma e ite st ctic om o d r a ic inc e nd a tlre ly he no a , sinv n m e- d ost in e est faul the w mide e te nu nt dspr m 401( pb ee e ra fo r k d o r ) f m p p ind ra la iv nc n a iv te p id e a-li u rt sect k aic e lsly ip ro a e e rnts p xpla e om rt , e s p ins e d loy e a Mitc s a e r a g -csponso o tiv he od e ll a d pnd a ertici rae l o Ut d p f ka us tn he ts (April): 235–262. 30s 6.5 50s % 1.2% 14.7% 1.6% 7.3 4% .7% 14.67 % 7.9% 72.4% 20 H Ac old 06e t For n, ivi Sa m rt 55 a 20s h, y 0 i 0 A Pen tnnu e 20 r Ba rl Re ad1 y, p6 a or nd t s Mic (Veh rsi ae on 7l Ha 3.3 1. % d c1) le. yW . 20 ash 0ingt 6. “40 on, 2 1( .1 D k% C ) : PlU. ans S. : D Ae 25 par -tYm e 1a e 2r nt . 0Re % of trL oa spe borc, tiv E 10% m e.” p loy I 1n 2v e .7 e e % st Bm ene ent fit C s Se omp cur any ity 60% 50s $65,454 2,501–5,000 822 2,900,1 27% 50 $215,413,617,525 $74,277 Plans Without Company Stock, GICs /Stable-Value Funds 24% >2 27–5 Years bulletins/pr com ivp aosi te-tpion o ension f th b -p y ela P sn a a -m r btull ip cle ie p, ta in rn a-tthis he Ag tro e tr,ha ic Tan el- nt tu he arb e le ,e s xpe A -a cn crd o ie- unc g nrta e S p of hs ize t .p y , p d o ic fr aS l 401 alary (k , )S p eale rtc ic tip ed a nt Ye s in a22% rs2016. As with previous 12 28 50s 12% 11% 12% 10% 10% 13% $63,929 12% 11% 9% 9% 9% Defini Cha tio nge 50s n of 401( s in Conc 44k) .e 7 16% nt % P ra la tion n 18Ac s in .4%c ou Eqnt uit 6. ie 2Ba %s Sinc lanc 25% e 8e .7 t he % Fina3n .2c% ial Crisis 6 ................................ .1% 6.4% 5.3%................................ 0.9% 65.7% ........28 a Fi wnd it gur h mor aenot 3 0 46 %he e, t 4 rh 0a 3 >1 $ n 20 ye p ( 6k) 0 e,r 0c L 0e 0 o – nt an $a 8 r0 he Bala s of ,00 ld 0 tcn e om ces nur pe as a ny ha $1 2 a d 9 s P ,t 6oc a erce 5c 0c koun an s t tage the ba irla o $onl n 5 f 9 c4 ,e 4 y0 6 s 9 e 1of q (k) uit le P y ss lan inv tha A e $1 s n $ cco 2 tm 3,7 10 e 9 u n 0n ,000 t. t Four Ba .la nc p$ e e 1rs 8c6e for ,4 nt 0 0 P ha ard tic eip quit ant $1 ys Wi 5 8 e,xpo 44t 4h 401( sure thr k) ou gh Suggested citation: Jack VanDerhei, Sarah Holden, Luis Alonso, and Steven Bass. “401(k) Plan Asset Allocation, in 2012. L It 401( ife is s p ty ko )l e sps la fu ibn le nd s ;tha s in mt2004 a the inta s,in e the o al d pn ere r, umb d lon 60s ete eg r rmine eorf -ta ec nu dtiv ri re e s k d p la w erticip v oe rk 1l 4e a .9 a rnd % s nt a sg c e in cumu nce re ra ala llsye te d ud sto e 6 DC . 7w 53. %o prd la 1 s n mil sauc s lis oh e n ta s(s ne ( e “c 7 w .8 g o ..ns 4 me ,% ie n tho rv aa p d tiv ro ) e fro fit ,” -m s “mod ha 44. rin e 4g ra mil p tla eli ,n) ” on o b r (e ofo ldre the 250 Mac D pona artic ld, ip a 30s B nt onnie s to 40s -23 Je a pnne erce , nt and 6 .A of 7% s Kp s ee avrtin D t ic Aip 6 ll 0 . a oc .Moo 8 nt 2% .0 a s in 401 % tr ie on . 20 D( 11 iks )t . 2 rp “ .i5lMovi bu a %ns 3t .6 i ng w on %ith 10 o Bof ey 5ond 4 .50 %r1 fe (tk he w ) e P Lra im 1 p 8 r3 a .it t9 5 ira .% c t9it% ic io pa ip ns ant nt of s ( Tr Fi 4a 7 gd .ur 4i% tion e 1 6 45 .a 7l Re % ). Loa plan ce ra m te ios nt— the in aggregate average account balance. Thus, to ascertain what is happenin 30s g to 401(k) participants’ account balances, a flu retc irte ua mte ion in nt 1p 5 4,la 0 01–100 40 0 n in 1– 11(0 k t,he ) 0 0p 0 a Unit rtice ipda nt Sts’ ate a 4s. 2 ss .9e % Itn 20 442 alloc 16 a 2t 6 , io .9 ans % n e ov st 3e i,m 0r4 a t 2it ,m 5 6 e 30% .2 d 9 e 5 % 55 (Fi g m ur illeion s 7, 1$ 2 2 .5 A 2 % 8, a m 6,4 e0rnd 4 ic ,9 a 4 3 n w 20 .3 7,% 8)8 or . 1H kow ers w eve err, ed a e $cspit 7t4 iv ,4 e e 1 1 40 a 12 1(k p ) eprla ce n nt gain 54% 54% I C H Ans d om old m titp ini eun, ats reing t Sa rRe atrion (Ma sn a sea h, ap rJa c sh h P cot k rc e s of Va hr)spe . nD A ne v c eta rw ih il va ly e eb i, 12 hir le a nd , a eno. td w L40 uis w 2 (No 1( w A .d klons )ol.g v pe lao. m ov n p b2 /s e01 a rit r )te . 0. “ ic s/ Aipa v d4 a ei01 nt fa las’ b ult (k le $6 a )/f s 0, a P ile set a t 32 l aw s/ n As 9 w ello b wsset A .ic caa/i.or trions esea llo g/pd cp rac rthe o ion, f/vp ide re s/ rA s 1 s fur c t2 a c-t ount 02 istthe .p ic s d rB /r fins a e la tiigh n re cm ets, a e int nto nd - reLcoa ent n 13 Figure 21 60s E, BA RI ve /IrC ag I e upd Ass ae te ts, a Alloc na 10% alt yion o sis of 9% f 40 a sa 1(m k) p 10% le Pla of n c Aon c8% cou sisnt tes, b nt 8% 40 y 1 P(akr)t ic 11% pipa lan p nt aAr 10% g tie cipa ................................ nts is 9% expe8% cted to b 8% ...................... e publish 7%ed late 24 r 60s 38.1% 18.A 4% ll 6.3% 10 1.2 8.% 2% 4.6% 8.9 2.% 6% 5.6% 79.6% 5.6% 1.0% 55.4% me introd “agtho g ? re uc d s; stion iv L Stable se oa ee ” o ns 40s in U.S > f $, 401( the 8.b - 0 v ,y De 0ir a 0k P 0 lu p na )la – a $ p e n Size r 1 me la tme 0p 0 n , r 0 to o f0 nt e 0 d , a ind u o ture 20 f cic ts L 16 a a s, te b . ................................ o su H $ r, th o 5c 0 w e Em h ,4 5 efu 6 a 1 v 0 p .s e nd 6 loy r, % g ’u s se uc a e ri r sh B a k e n DC le ne tee $v 9fit e p 1l. ,la s 6 d 3 L 20s n S in ................................ 5ife e ac 4 rra v surity .ty es 6ng % le tmen e fu Ad me nd $m 1nts 7 s inis t c 8 g ,3 e o g 4 tra ne 4 e nne tra tion rarllay c 2 ll................................ 2018b ts 5 y a. r 0 d (GIC e % $ i d 2 inc 6no ) 6.l, 5 ud As t s 02 p )e e th drm e in a n it U.S the d e ot mp . 1 $ no De 8 2h loy 3 .8 n er 4 ........................ p% - ,a e 8 ta 6 rtm es 8 rg table co e entrib tnt -da o -tf ution v eL a alu bo s er 43 some com 50%b> in 21a 101–500 0t,io 00n o 0 f targe1996 t-date fun 42000 4.5d % s, non 390 2002 -2t6 a.r 5g %et-2005 d 11 a,t 6e 3 2b 7 ,9 a .3 4 la % 3 2007 nced fun 1 2008 $ 1 d9 .s, 35 % 1a ,7 2 nd/ 8 051 2009 ,5 or 6 4 6 .EBR 6 9c ,% 2 om 19I/p I2010 C aIny stoc2014 k. $A 81 s a ,81 8 r2015 esult, ma 2016 ny A Br ca cd ount y, P e Bta el60 ra. n20 ce16 s, a . 50s nd How Loa Am n Ac er 7ic .7 tiv % a iSupp ty in 201 orts Re 36 .3.” % tE irB eRI me Int ssu : 4.C e 2 % ha Brlle iefnging , no. 2 45 3 t.he 58 % , Caonv nd e IC nI t 3iona 6Re .6% sea l Wis rch d om Pe 24 r spe .on 8% W ctiv ho e, BVol. enefit 24 s, . no. 6 A am s a oun cros t $ of 6 s se 0t,he 00 ct 0 io loa n, n o oru sn tstaapndi shot ng , d of ivtide hed e b nt yir te he p op rem ula atini iong n oa f 401 ccount (k) b pa la la S n p n ha cre a e r — of tic v P ipa aarti ryn conl itpa s, t nt's y hs e light A cd ca ou tly a nt b w ase hen p inca lude rtics 401 ipants a (k)r e Ra set of t D eis s.” tc ribu onsi Soc tion o ie stt eynt of f 401 pa Arctt( ic u kipa a ) rP ie nt asr s t( iSe c m ip us p atA nt te m c b s’ c e bB ou e aa rna l)a nt . nc lA y ze v B ea d a d ila . lFu a b Fu nc le nd t u a e A rte llo t w o rw e ca B sea w ta i.soa ons b lra ch w nc .or ye g ill A d / r g ee Fu e xa sea m nd r T ine c eh/ s n , ulin rre by esea ke A dr ge c dh a-tp ar oje to a cna ts/pe lyze ns tion/ he crons esea isrtc eh n-t 28 in t part he icipa S&nt P s. 50 0 t By ot ye aa l r r-eetnd urn i 20 nde 16, x, th 401( ek ov ) p ela ran a ll ass sse etts ha alloc d a gtrion o own to $ f 4014.7 (k) tp rill laion, ns in t rep he re E sent BRIing /ICI 18 d apte arbca ese nt c of haange ll redt ir lit etm le ent By Jac 20%k VanDerhei, EBRI; Sarah Holden, ICI; Luis Alonso, EBRI; and Steven Bass, ICI 39 inv b U. Aull cS. te iv est t iG tins m y ov e in 200 /2 e nt r00 nm allo 6pe e 9.” nt ca ns tI A ion nv ionp cce s. B osunt lta m nbul ae a la $55, b nn il t c le it C e 502 y tom d in.pd Offi fun pa cd fn e s, w y . 19 Ins hic 97 tit. h inc ut “40 e Re 1 lude (k sea ) P lif re ce ns hst P ion P ye le r spe ala nd c ns 2016 ttiv : ae rLg o 16 e atn P -, dno. artov e 3, a fun isions E d nd s, E ha nha BRI ven Iinc c ss e ue rP ea a r B sed tric ie ipa fin p , no. tion b op 35 ula ut 0 r Ma ity y (percent of plan assets) Tenure (yea 14 rs) a no bnd a Targ la te nc o s:fte 2 e e “In 0d t % n- fu dw a and e te p 50s re ure 5fu c 0a d 1nd te ly e –s 1 g s i,e g 0 o c 0 o ne ry o 0 fte no .d n mic toa rbe e s e usns s up ee dp 4 a le a 6 nd sm . 7th % efo nta e 4 r 9 d.re le 1 to faul % se 2 5 o a.trc the 2 % inv h r p ee urp smp tme oloy snt e 7s e . 7 ,5 ir n % .ind p 7a % la uto ins vid .ma ua Patic l1s rtici 0 .in 5 e% nro p the ants llsm e2 ’ e 4g 9 a .nt 9 ro .c1 % c% up o pun lasns t sho b a and la uld nc in no es p t la tha b n 1e6 s t ’ .inc 2 p inv % rlud ee dsae tm te d e in the nt the li401( n ecu op k un s ) t In a givetn a A his A llllg y ee g ar r. oup 4, 3.5 long % er t 2e 1.nur 3% e te 1nds 1 60 .1,% 79t4 o me8a .2 n %t 2ha 7,1t4 a 83 ,3 highe .10 % 8 r pe5 r.B c $ 8e 2 al %,nt an 04a c 5e g ,8 e Hel 4 6 of 5 ,d 5 .95 ip % n 4a Com ,1 rt 9ic 9i pa p5a ny .1 nt % Ss w tockill h $ 0.7 a 95 % v,e 3 5a 8ccoun 67.4% t balances All 120>$100,000 18% 18% $41,971 17% $1 19% 41,339 18% $3118% 5,380 21% $43921% ,881 20% $375,718% 18 19% participa 3 nt fus w nds it,h no a60s re e q re uit por y fu tends 1 d1 .a 2s one %had ecxpo ate4su g .9 or % re y . to equit 1y 4.-7r% elated inv 3e 2st .1% a, mbents thr 1oug 8.0%h comp 4a1ny 9.2 % stock, balanced funds, (September 2018). Washington, DC: Investment C Aom ge G pra ou n py Institut >e 0– . 5A 0 v pe aril ca en b tle at w >w 50w –9.ic 0 pi.or erceg nt/pdf/rpt>_1 90 6_ pera ce m nterica_supports_retirement.pdf p g H mr a old ov oup rtiing c eipa n, ed -b Sa nt b ea s w y r ased a ond h, ho .a a on nd a spx rte he D y a oung nie size l Sc of a nd hr the atss ir hose . 40 20 1( 18 wkho ) . “ pD a lar en e fin s (a ne ed w s m Ctont o eta he rsiur birut ejd ion P ob bs, a y t la he s w n P num e all a rtic >b 30 s old ip e r Y a ea nt of e rs’ srp p la Aa c n rttip iv Ba ca it ipa r rc ie tils, 201 a c n y ipa tss a Cnt and p7.” s it) a. lt ho A IC m se Iong Re wsea ho those rha ch R ve in e bp eor en t sample of participants in the EBRI/ICI data collection effort. a bss ete wte s. en ye I an a an o r1 -0 e0 ngo nd 1–520 ing ,0015 0c olla and bo 20 ra16 tiv. 4e 9A .e 4 t % ff yor eat P r, -e t ehe rnd 2c 3e .2 E n 20 % m ta 16 pg lo e , y e e oq e f u p 7 B it .a e 3 yr % ne tfun icfit ip d a Re s w nsea ts e 9r , .3 e r% c43 h I 2.5 p 0 ns 16 t4 it e .5 ut rc %e en (tE of BRI the ) a and ssetthe s in t Inv he es E tm BRI ent /I CI Figure 22 40% N , oD tA e: 60s is cco Tthe r uibut ntm bedian alion o anceac s a cf 40 re ount bas 1( balanc edk o) n aP e dla at mi n n year-end is, P stra5 ti2 va e. r 8 re 201 t% ic co6 rd ip w sa as ant n $ d s, a 1 co 6,836. ver nd the aA cco ss 6 u.e n 4 tt % bs, b alance y aItnv thee 4s 01 tm (k) e pln a2 nt 8 pOp a .0 rti% citpio anns t’s , cu20 rren16 t em ................................ ploye 1 r.2 R .7 et% irement . 24 o A a ( p (s N f m la ff eov a e n e ong cc tiv a P e t re la m I en n 40 b 0–2 no c p e R S om a 1 r op t rt ) w (o . k inc pe ic e ns ) A rc ip Se v p lud en oa a a r tag nt il c re Cou t a ur es s d ic b . m it ” ip le in ay nc y H a no a thi o nt fo ilt tw ad o r s. R s w e f d S a v w tA oom na e 27% 1 w me e r, 00c ly .ic pe e e the ric s.” rc nt i.or is en a , ly L tfo w be e 2018) g 24% hi rm t chic /pd t au e rse rh e s f/ d oc Re .fo f he p p ro At e c p a un d 27% us rr or y di 16 ul tng e ie t c e a ., s - ipa P r0 n G er - o3.p e e cn A n en nd eO t 23% 401( d tag s in d /H e 201 f es d a E ar to k nd 20 H e 6, ) do S ma p 16 lla -www. 21% 67 la 98 r-w k n ei te p - e gh b 5 (O e nde the a trc ed e la b e av nc 25% r nt d c a er i.or td ag e ob tjus o o es a f g e .mo b ta /pd tm re )r . un 22% g e m f/ W nt eor ts tb a -r id .e sh s ie a no lik te fs inp 19% e g m ld ly o ton, f/ utu ng tE o e B ar D hold RI l re C fu 16% _ : q nd IU. uire B b _0 a S. ala s d11 sG .n e 19% U c ov ts -e s d ing e w re fun nm rNa e18% d e he tional s ntld in DC Distribution of 401(k) Participants’ Company Stock Allocations 31 g Firg eur ate e r47 tha , Few n $100 40,00 1(k) 0. For 26% Partic ex ip aan mpts le, H22 ad O peu rc tst ent an of din pa gr t 4ic 0 25% i1 pa (k) nt L s in t oanhe s; ir L oa six ns tie Te s w nde ith fi d tvo e B to e 10 Sm y ae lla .............................. rs of tenure had 43 Age Group 12.1% All 7.6% 2.3% 4.3% 12.1% 25.5% U.S. Agg 4re 8.g 1% ate 20s 8.3% 6.4% 85.2% 40 or 13 both (Fi Sog urc su avr> e: ie n5 g T ,s29 0 abulat h 0e 0) ld. in io p ns la n f5s ro am t p EB reviR ou I/s IC eIm 4 P8 p art .lo 9y % ic ers ipant or ro -D llirec e2 d2 ot.v 7 ed e% r R intet o irem IRAsent are 8 P n.o lan 2 t % inD clat uda ed C. o Allec cco 1u t0 io n .6 tn b % P ala ro njec cest .> a 4 re 90 .3 33 n % % et of loan balances. $50,000 w pla itns h th weiir tbh T c1,00 e ur nr ue re 0 nt (or a yeem a fe rp s w loy )ere p rs for artic ipa ma nny ts, t ye he ar s. The loan ra se tio annu was a12 l up pd ea rc te es of nt of the the d r ae ta m baaini se ng prov ass ide ets in 20 snapsh 16 ot, s of whil40 e in p 1(k)la p nls an ( U. Ma S. yD ). eA pv aa rt ilm ab ele nt aof t w Lw ab w or .ic , i.or Emg p/pd loye f/ep p Bre_1 ne7_ fits Se rec_c su ur rit ve yy A _q dm 4.p ini dsft r ation. 2012c. Private Pension Pla dn Bulletin, A 10.5% bstract of C 40 p Comp la om GICs 1( nsp k e ( ) as ns n d a ey re a e a A ttI Inv a ion tn ar ins b st gea e tura i -d se S tsut at urve tm e nc (e fun F e Eq e igur ( nt d y uI t y ic C td pi ie Com o I ca se al mp ) ta ily n cl 21 re c ua p a ba olle dny n a ) e la, ny d 1 e nc 6 q lit c p .es u his 7t iro Ins % tt y itle a s fto ud n po n tit uc d c ric nua rt sh fut ,o ts co a a lionge e l m l d tha t re o p2018) a be a n la d t y ct o tion s a g m tfr o u e ck, on om .a le s P sra ahi s nlm a fdnte op 43 n tcill hs us e S .1 p ions e a ed ep q nd a u o o in tns ys e gr p tr of p r o oo c e e w rtr ite c nd o h 40 nCou ific nt an os d 1( f b m a e ra anc ok t lv a re )te id ny il ce fe op e co do a la nt us f ff r un p ed - nAme re in d e o snd turn n . a th F in > ur cric n 20 t o e 20 dim c s – a Form o e ipa 30 i15 nn as 2018 cl u Y itthe .n d ap ears et s a pr 5500 m B oinv u rac a te us a la a he pe l o s fn u s d rte an nte c m a dd e std e d ,a d b a , c aa fun n ns a EB n k p co ita inc R d t llo e I s, w l ct re a e io vn exa a v d e s hic e m rICI the in ine h inv e the s lihow tima fe e inc s o t ftt in b id e he the etnc he sot ee h 10% >2– 10 50 24% 25% 25% 21% $45,519 22% 26% 23% 20% Bond In 18% dex 19% 17% 20 A com cc 10 ount p ?_No areaT d 35 b h ili w 0_ e a btit yh r 40 Offi vera e 1c kce _Up ent g . e A hi d v 4 a a r0 e tila e 1 s i -(k b 09 n th le ) p .p ad e tlan f w p a w a st wc . .g c Ao a bo.g u ou ntt ba ov 7/a 1 lan r pcehi rc c ve e ten ent /1 99 of d 8/ re she c to e98 nt in ly 0c 05 hi rea .p red d sf e w 40 1( itkh ) par planti p ca ip rta icn ipa t a ng ts in 20 e and ten 16 au nd re. 70 For 30s Percentage of1 1 A .1c % count Balance 7 In .4v % ested in Balan0 c8 – e 1 2d . 5 Y % F eu an rsds ? 20sOth Ler oA ngll eis r-t et nhe ured r pe asi rtici d p 12% ua ants l for are u so 4 e7 11% t dh . 2 ine % tr h isinv anae l10% yst s2 is 4 m .to 3e % ca nt pts, su ure 11% the c loh a n7 g.e4 ss r % t10% poe sa sil ble e w st o1 a 10% rk 0ta .e 7 n % dfun savid ngs. 13% s 4 h. i s 6t% ory (see 13% note 1). The11% tenure 9.0% variabl8% e tends 8% account balances in excess of $100,000 in 2016 (Figure 15). However, 47 percent of participants in their sixties with B 29 Cro ap dy yr , ig Pe htt In er, St form even B atia osn s, Je : Thi ss s r ice ap H or olla t isnd, cop ay nd right Kee vd in P byie tr he ce . E20 mp 17 loy . e “Using e BenePfit ane Re l T sea ax D rch I ata ns tto it38% u Etxa e m (Eine BRI t)he and Tra bns y tit he ion to Asset 30 A pa %lloc sses a the tion targe tru s of ts da tst,e lio fR e f tie n he sc u fe un rant d, nce wlhi y sc e h H pis air ra us 1e t5 e ua d . 9 a lly % cco P ina c ulu n rde tt sic ,d aip in n d ta he ant n fy un ps d’ o o sl e na dm in e. vestment product primarily invested in the security indicated. 31 Mit Althoug chell, Oliv h the 0–2 ia a v S., eraagnd e aSt cceoun phetn U bala tkn us ce . 20 for 6812 . 7t% he . “ T ea nt rg ire et -dD aFi a ta te b gu a Fu 1se .re 9nds % at49 y in 401 ear-end (k) 20 Re16 1 tir 4 e .is 9m % sl en igtht Ply la ns highe .” Nr B 1 E tha 4 R Wor .5n %the k ing aveP ra ag pe e r, no. c nu oo f ntra S mb ao uto ce ia cr ma t. l o S f e tic a cc urity e tinro ve r401( lle m pe lant k c)e in s p a a201 r ticip muc 7.3% 6.a h nts Of hig the to he b r ne fr e a a arl b ction y o ut 600 55 of p p mil la re ns li re o s tir n ur ien v 26% m e2016 e ynt ed,e 59. a and rning 7 the ps e rc fo nu er nt m 8% low bha ee r d ro - a inc f uto 401( ome ma k )tic w po la e rk nro ns ers to ll.me For be nt ae b in xa out 2016, mp 555, le, c the 000. omp fir a Th sre t-e d w Fi 20 acit g c 07 h mor ur ount eFor 23 >5 b e m , a – t A la 55 h 1v 0 n a ec 0 n re 0 A a10 sg, b e,0 nnu a A s00 set a ssa el Re pta llo cA rtll p ic c oc or 23% a ipa ta tion, 40s s tnt ion o (Ve s, and t r 21% f 401 he sion loa loa 1. (n a k n r A 5) ) 23% c P . atT la tW iio vn 1it a 2 y w sh .A 8 % A a c a 19% ingt c s cou r10 os on, nt G s w p s, b e18% D L ride cC y e: A nt P c U. a r 7( oss rN .S. Fi t 0ic 24% % g ipa D C u sec e re p nt E ta46 ions rA t20% m ) g.e e of nt and p of 8a 0r 19% I .L 2 tnv i% a cb ipa eor stn , m tE 16% s. How em ntp Op loye t eions 16% v ee B r, e .................. t ne he fit 15% cs Se rossc-uri t25 y to be years with the current employer rather than years of participation in the 401(k) plan. One30s reason that job tenure may not reflect length of e pq ar uit ticie ipa s a nt nd s m fix ae nd a-ginc e tom heir e 40 sec 1( ur ki)t ie ps, inc lan ac re coun ased ts. Thi only s r slight epor lyt in sha is an up re, da ac te coun of E ting B> RI 50for -a 90 nd % 27 I.C 4I ’p s ong ercent oing of rte he sea as rc sets h in tin t o 4h01 e (k) Fi Ag gur e e 48, 40 30% Pla 1( ns k )W L Pa ito h rta i ci G n pIaC A nts sc it n /iS cl vt uia d tb y e l th e Va e- V 27ra .ie 1lu m d e i l liA F ou nc n 4r0oss d 1s (k) p4 la01 n pa( rtk ici)p aP nla ts n in thP ea ye ra ti r-e cipa nd 20 n 1t 6s EB ................................ RI/IC >I10 40– 120 (k) d Yaears tabase. ..................................... 44 percent in 201 examp 5le he , a ld t y be aa la r-nc end ed 20 fun 16 d$39, s , ,p ca 885 om rticp ipa are nt ds in with a theb irout for t tie ws w o-thi itr h mor ds froem t h 20 an two 11 thr too ugh five20 ye 14 ar, s of lesst e th nu an ha re ha lf in d an 2006, 30s c 20% 19% 18% 20% 20% 20% 23% 23% 22% 19% 20% 6% 40s 6% Ass betw ee t All en 20 a oc Not a al > l tio 2 pa nd – rtn 5 icip 30 to ant sy Equ are e a or ffit s of erie ed s thi t s e innur vestme en w t5.1% opt itio h th 6 n 3 (s.0 eee % Fir ig urce ur 22r ).ent employ 3.0e % r had account b1 a8 la .8 nc %es greater tha1 n $1 5.2% 00,000. Investment Company Institute (ICI). It may be used without permission but citation of the source is required. Retirement.” 20 p 80 a rt SO icipI a tiN W on ot e or in : R thk o eing w 4 p 0e 1rce (k) Pa n ptlp a ag ne e , sr p a m ( rta A icu yp nlo a rtrl il) a y d a. d m 1 W t4 o o . 6 n 1a % g 0 0 sh o lp de e ingt rce r pn atrt on, b ici eca pau nD s ts e,C o is f: ro thI u ant n t d th ie n egr re .na gul Re lationsv fe or nue 401(k) Se plar nv si w ce e re . nA ov t ia ntila rodb uce le d ua ntti l w 19w 81w . .irs.gov/pub/irs- w H 17 y ee sold ith tim a 91 r e 57. re 1 (M a 15 n, te p % 5 la Sa oc p a f e e rrthe c m a rc h) h, e e nt . nt nu D C a ra in m anie $37, m te b 2015, e b l Sc r (r 323 m idg ofeh a a e 52. rn c a , ti s MA s4 v s, a c e he p 50s : 401( ed nd rc Nule a etnt Mic k ion d ) in S ph a o la a l B 2014, cn e ia l B ur p l a Se og re a ticip 39. cu o d urity 1 a6 3a n. f . 2 nt p % E e firs 20 s crc on is 17 e t -n om b y. ta e “ s in aic Ow e r d 2008, b Re e o ne n n se era 6fits sh a . a 3cr % n ip o c d a h. mb s of 10. a A in Mut vp 5 aae tion ila p rc e ua b e rc nta le o l Fund ef nt a d 8 gt 0 a e in .tw 5 a o % s, Sha w 2004. f fro a wv.nb m era r U.S Ut e e gr hold e k.or . us infl De g a e /pa a p nd rt a ion Se rtme p Youn e nt -ind rs/ im nt w g ee xe o 17 2018 nt f d , L 9 a c a 11 b a no rd e r, e r account balance at year-end 2015, this is mut 3.9% e40 d b 61(k) y partLoan icipants Ba and lanc plans es entering and leaving the database. Among 0% $ >1 40 0,– 02 0 1–100 0 0 15% 41.4 14% % 2 16% 4.6% 13% 8.9% 13% 17% 8.0% 16% 1.6% 14% 11.3% 12% 15 12% 11% sect ional analysis is not well suited to addressing the question of the impact of participation in 401(k) plans over time. U. Y H Ae d old S. a m rini - e IE nt n, nd se tSa rra n 20 tra ion (Ma al Re 16 h, Sn Ja veca nue k rp c sh Va h) ot Se . nD A rof v e va r ic h il 40 e a e. b i, 1( 19 le L k uis ) 81 a tP . w la A“w lons n Lo Nw ot.d ic o, aol.g e n Ac aof nd ov bP tiv St r /s op ite it yv e ose ................................ e s/ 3.1% nd dB e Rule a fa ss ult . /f 20 Ma ile 11 k s/ ing, . e“b 40 sC a1( / errk e t................................ ) a sea in Pla rC c n A a he sh o r ss s/es rt t D a Ate lloc is fe tic ra rs e t/r ion, de ............................. A tirrA re a cm nge coun ent m -te B nt as Und lances, e r36 p da latn p abaase rtic aip t a ynt eas’ r-e and ctiv20 ity16 thr . oug Despit h ye e a m r- inor end sh 20 if16 ts, m . The ost 4 re 01 F pig or (ku t) re is p a d r 2 iv tic ide ipa dnt int s a o pfour pea rse edc tnot ions: t to ha hev fir e s m t a dd ee sc d rr ibe am s t a 3% the ic shifts Group 20% Zero So 1–10% urce: Tabu> la1 tio0 n– s 2 fro0 m% EBR> I/I2 CI0 Pa –S&P 3 rti0 cip % a5 n0 t-D 0> ire 3ct 0e– d4 R0 e% tireme> n4 t Pl 0a– n5 D0 at% a Col> le5 cti0 on – Pro 60j% ect. >60–70% >70–80% >80–90% >90–100% 14 and ? one 40s-a U dthir vn ek r > da n 5 g in 200 – oe 1 w 040 n,1( 2 ( w khic )Fi p g h is t la ur 22% n a e 35 he cc) ou fin . 21% A nt a t l y b ce 5 a aa 6 la tr e .0 - nc g e % 20% or nd e yof , 20 ca ons 16 bou 22% , is 59 tt s of $ 38 pe4 ,00 ra .c 22% 5 se% sets 0 nt 2.5% , c of om tha re 22% ptca e crn ould etd ly w hi not it 26% 2 rh a 3 e.d 2b n % 40 e aide 1( v26% ek rnt ) a g ifi pe a e rd 40 ti.c 26% 1( ipa k 1n )6 t.p s he 3la %n a 24% ld ctca oun rge 25% tt -date Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project 2.1% .>5–10 Years GICs are guaranteed investment contra 60s cts. 12.7% 5.6% 1.8% 81.8% 1.6% 60s Bure A The e re a m p Othe rning o ong rts a pu e r r s o tha indiv c sf fo e ta L nt tr a b 46 r a b le idu e g o 101–500 - tire r e v p a a S e inc l 401( lu d ta rc e w ti e r e nt s fu otics a rk nd ses k oe )f s rs 201 p DC inc t la o in n p 2, p lu 57 the la d 2013, a ns ep r 1960 te s 4 iin y c r 1c nth ipa . 8 e th 2014, % nt –e n e 1969 ir tic tfor s, t r e GICs 2015, che p b o 2a 4 irt rd r .a 0 ,th k ic % lloc w e 2016 c ip e hic op a a ho in nt th io g rt a s in c n o nd o s[y ns ind 6 s f a .2017; te t 4 ihe siv % t m c id o ir cin f u ount si a a a2017 ls x nd pt o ie a b rtfo g U.S s w 8a e .1 o ld a % li ff . n it 48 o e De c h mo ro e to a f s t puto fix a rtme 57 o 1 re .e ma 6 e d % in q t-ha inc nt uit tic 20 n o o ie e 17] me f 30 nro s (eq La 1 ) 2 y 1 s b lld e .0 e me o 2e c uit 1 a r, % c uriti r 5 nt, re s of Em y F a o fun e s up p rm s et loy d e “w d fro nur 5 s, c a e 5 ra se m 0 inc p e B 0 op . 45 e m e o ne d p me p ”a fit e n w rc sy ith e Sst nt ea oc curity in k, soi/17rptransitionretirement.pdf I Fi n th gure e 21 24 ,y A ev ae rs t rag ha e tA tss he e td A at lla oc ba ase tion o has b f 401 een tr (k) a Pcla kn ing Acloa cou n nt as, b ctiviy ty P a am rtic ong ipa nt 40 1 S( akla ) rp yla an p nd a Inv rtic eip sta m nt es, t nt Op herte ions ha s b ............... een little 26 Use the sa of m the p >2 le 0 I– of nt Av 30 eperage and ra ne rttic , ipa 20n 17 ts w .” med Iho C 11% I Re w ian 34 esea r eloan 10% p rc re h P sent balances erspe 11% in tche tiv e d f or a 9% 23 ta401(k , bno. ase 8% 7 (Oc in b ) part otth 2015 ob ic 12% ipants er). Aavnd 11% a w ila it 20 b h le 16 401(k a , t 9% t he ww ) a w loans v.ic e8% ri.or ag,e g 1998 a /pd cc7% oun f/– pe 2016 tr 23 ba7% -la 07 nc .p ed f Distribution of 401(k) Plans, Participants, and Assets Fi a E b Cnd ull m rg os ur p eloy s se L teins oa 49 en /2 c et , A ions P 00 4 cla 0 > t7pe iv 1 ns 1 0 i( ct– .” k) h yns 2 a in 201 0 Fe L nge ionp od an e r in c l Bala a a 0.” l Re nbul o m In C g le p ces I is osit tRe tin.pd e r................................ sea ion 46 f , rf cr no. 4 h P om 3.1 e 21 % y rspe e7 (No ar ctto ivvy e e e m 17 arb ................................ , e bno. r e c 10 6a .4 us 10 )% : e , 55 a the nd 544 sele E –B 5RI 55 ct ion o 49 Iss ................................ . ue 3 0f d . 8 B% a rie taf ,p no. rovide 366 (D rs a.............................. nd 1 e9c.e 7 sm % am be prle ). of Avp ala ilans ble 45 at ? The bulk of 401(k) aAs llsets were inves 11ted .0% in stocks. 6 On .7%average, at y8 e2a .3r% -end 2016, 67 percent of 401(k) E in t 20s BRI he /50s ir IC a I2 ess 40 6.e 2 60 1( t% a kl) loc da a 1tt.a ion 8b % as in 2 se;17% the 1 0.16 5 % second . 17% 1 p.r4 e% sent 17% s a 1sn .119% a % pshot of 1 19% .2p % articip 19% a1 nt .5 % account 22%1 b .0a% la 22% nces a 1t .2 23% y % ear-end 1 21% .20 1% 16; the 23% 62 t.hir 0%d 501–1,000 42.0% 24.8% 5.8% 7.7% 1.5% 11.1% funds, whil b Eq aui e la t ien 12 sc ine cp lu of de er 4 eq cm 0 ui e1 tnt or y( fk un e )he ds Pl t , h cld a oa m n n $ pa non A nys 28 ss t- ote c7, a kt ,r s an 0 g00 d ett he - d a eqa m uit tye ong po b rta io la n p oa nc f ba rte la ic nc dipa ed fu fun n nds, t dss in t . and heir 1 si pe xtrie ces w nt he ith mor ld bot eh tha ta40s rn 30 get-dyaeta er s of and tnon enu-rte a. rg et-date R Ad g inc 2016, ua ep minis A re ra vo aa nte s r 41 ila e t a tra d e b .p ili v tion e ( Th a tt rc y y il e p e a a ic nt 2012a, me nd bil a ll in a y it Use n 2015, b y re y :2012b a p Thi of n la c a in 40 s r e ns ,m d 1( ura e2012c e p 36 k nt or nc ) p tP ra e e la is , t rc ce n Loa 2012d o a e mp fo v nt a r ila in th a n ny , b s b e 2014. 2012e le low o y r on a P e la ,s b t t he a 2014, n Size n lif ke I)nt time to e 2015a, rp ne 20s ro ho tv us id at2015b e e ho w bw e ld ne w e ,.e fit a 2015c rning b p ri.or aym ,sg 2016, e q nts a uintil nd a a c a et c nd o w w rd aw 2018a. sing w 83 .ic to p i.or e the rcge nt; pla n fo a r tthe bo om k id va dlue le . 36 a >2–5 Years 16 a Mor nd nin the g st eq auit r. 020 y p15 or. tio Mor n o nin f bg asla ta nc r e Ld ifec fuynds) cle A v llo arcie as w tion I ide nde ly a xe round s—U. tS. heI nv ave est rao gre s of (June 67.4 ). p Ce hic rce ant go: foMor r all p ningst articaipa r, Innc ts in t . he 10% The analysis includesb the 3.3 million recently hired participants holding balanced funds in 2015, and the 3.6 million recently hired >30 Percen7% tage of p 8% lans, par 10% ticipant 8% s, and ass 7%ets by 9% number 9% of 21pla b,cn 7% particip6% ants, 201 6% 6 5% variation. Fro >m 20 – 19 30 96 through 2008, on 3 a5v.e 5r % age, less than o 8ne .2% -fifth of 401(k) p 35 a.r6 ti% cipants with acc 2e 0ss .7% to loans had increased $3 0 b,y 0 0 18 0 .4 percent between year-end 2015 and year-end 2016, from $76,630 to $90,713. 1 E,q 0u 0 ity 1– Fun 5,0d 0s0 Compa 4n 2 y. S 4% tock 22B .2 a% lanced Funds5.2% Bond Fun 7.3d % s 2.G 0ICs % and Othe 12.r0% Money Fun50s ds using a given provider vary and because 401(k) participants join or leave plans. In addition, the database contains www.ici.or pag r/pd ticipa f/p nt es’ r17 a41% - ss 10 et .p s w df e pa ar rnd te icip ainv ntw s hw oe ldst inw g be .e ald anb cein e r di.or fundsq g inuit 2/pd 016y . f/ secu brierfs i21% tie pd s t f/E hB roug RI_h e IB_12 quit -y 20 fun 11_No ds, t3he 66 e _4 quit 01( yk p )-or Up tion o date.p f b dafl a nced looks q 30s uintil 60s e a,t th p 3a 1 e.r 5 tm ic % e ip aa n nt S 3s’ o .6 cia a % ss l S eetc 9% a urity l2 loc .9% arteions pl9% ac, e2 in me .6 cluding % nt 9% ra1te 1 .2 a w % 1 na .a 9 s 10% ly % 54 sis pof erc40 1 10% e.nt; 81( % ka)nd pa 11% fo rt1 r ic .9 the ip % a nt hi 12% s’ ghe us 1 se t .4 q of % ui 13% ntil targ e,e 1 t it - .6 d w 13% % aats e , 33 or p lif 1 e 13% .rc e 7c % ey nt. cle S , e 14% fun e 4 9 “d .C 3s; -% 2. 40 balancedN fun ote: Fd uns ( ds in Fi clu g1 de ur 0 m 0 e ut o ua 36 r l ff un ) e. ds w , e bar nk collective t1 rus0 t1 s, lifte o in 5 sur 0an 0ce separate ac 5 c0 oun 1 tt so , an 1 d ,an 0y0 po 0oled invest1 m,en 0t0 pr 1 o du to c t 5 pr,im 0ar 0ily 0 invested in the >5 secur ,0 ity 0 in 0 dicated. 17% R Bre ala dyt, io Pe nship ter, and BeMic twh eae en l B 4 og 01 da (k) n. 20 Plan Acc 10. “A Look ouna tt Ba Prila vances an te 2% -Sectord Re Sta irlary eme nt S Pta la bn I le-Vn alc ue om Fun e d sAfter ERISA.” Investment Fi A Hv old gaur ila een, b A25 le cco Sa , au t A r n av > w th, e 3 Si w r 0z a D w ega .c enie or Ass p l Sc or eta h tA rea ll.s oc m s, Ja or atnin ion o son Se gsf 401 ta3 r.ligm 7c.om 6 (% k) a/u n, Pla s/ an d nd oc Acu Mic cm ou e hnt nt ae s, b 9 s/ l B .8 Inde % og y P dxe la an. n Size s/A 20 ss 18 e a t. A nd “lloc A3I m 6 n a .e v 0 tr io e % ist cns am nSum eVi nt e m w Op s on arty ions .pD d 1 e f 6 ........................... fin . 7% ed Contribution 27 2016 database >5,(0Fi 00 gure 21). For b ty 4-7e .1 ight % perc 2e 0.nt 4% of partic6 ipa .1% nts ha 30s d m 7.or 2%e 0 –t2 ha Years n 80 1.3% percent 11 .of 8%their account balances 3 15 40 Fi loa g40 ns ure 1( out 50 k) st , P40 a la 40 nding n Lo 1(k)a . L n Ac A ot a n A yte iv am it r-yo e unt V nd a r Rs V 20 oie w s Wi p09 ea rcern, ie tat gtd eh P he s mA a yc a p nr ore tos t ar i dc dc s 401 tipa e o 1nt 00 n pa et rg c ( eA e nk t g b) eof A ce P av u, a se p eTe r r oa a t f i rge r oc nur t uipa nic dinip ge . n a , tMe nt s A c s w ................................ di can ount ho w Be ar la en offe ce, r ae nd d loa Sa ................................ ns lar yw ith loans outstanding ......... 46 36 U. U.S. S. Joint Depa rC tm om ent mit of tee L aon borTa , E xm atp ion. loye20 e 06 Be. ne Te fitcs Se hnicc aur l Ex ityp A lad na mtini ion o straf tion. H.R. 24, th 012d. e “PPre ivns ation P e Pens rot ion P ectiola n n B Actull of et20 in, A 06b ” st ar s act of 10.1% R e S At S p eo la eme y c Inve e ea m re r-es e c nt tme nd ord R 2016, k a nt e te eComp — peP r59 ric s s a e p up ny se” rc p in Ins ly e nt in Con tit g o ute d f ga no re ta 2018. sn sw -ion ta ere rg a At l eun Bu t -y d a e d a b a g 60s tlr e e e- t e b to Offic nd a lp a ro 2017, nc ev e i2 d d017. efu 401( cnd o mp For a ks )le s a p e te d la ts dn a iti w s ss o e ha e na re t d a l a ll d $5. so iss cume c a 3 us tion trsil d ion li d to oe n , tb sa ie n e il e a inv o Bra sn se e cs td es te y rta . d e in t ina p l. eoq2017; ouiti lede s a s Bra (s se et e dc yla asnd se s only As s Te etn t he u A r ea llo (cyce c oun a a rt sio )t b n ala an nc d es he Part ld icipa in the nt 40 Ag 1(e k ) plans at participants’ current employers. Retirement savings held in plans 40s 0% 3 fun 6.9 d% s, and 5.c 2o % mpany4 .st 0% ock. Tw3 e.nt 4% y-seven 2 .p 3e % rcIn evnt es tm of 2 e. n1 a t % Ca sste eg ts orywe 1r .9 e% in fixed1 -.inc 4%ome secu 1.6% rities su1 c.h a 7%s stab3 le 9- .5% a A nd bout the four the th foc EBuR ses I/I on CpI arDa ticipa tabas nts’ 40e 1( k) loaN n a um ctbiv eit r y o.f plan participants Source:A Tab ll ulations from EBRI/ICI PN ar ott eic : “ip B4 a an la 4 n t. c -D 5 ed% ire fuc nd ted s” i n R cet ludire e2 m 2 m u. ten u0 a% lt fP unla ds n , D baat nka cC olle oclle t6 ivc e. t1 tio ru % s n tsP , lro ifeje inc st u.rance s 7 e. p4 ar% ate accounts, 1 an.d6 a% ny pooled invest1 me1 n. t 7% 10% Salary 9.4% 8.9% Company <$ I1n 0st ,0i0 tut 0 e Research 39% Perspec39% tive 16, 37% no. 2 (No 935% .3% vembe36% r). Avail39% able at w 39% ww.ici.35% org/pdf/ 42% per16-02 38% .pdf 35% 9.2% $7,982 P inv lae n Sa sted v iin e ng, q 20 uit 17 ie.” s, w IChil I Re e le sess ar c tha h Re n 8 p or pe t r(cFe ent b rhe uald ry)no . Ae va qil ua itb ie le s a att w all a ww t .ic the i.or eg nd /pd of f/p 20 p16 r_18 (Fi _dc gur _pl e 30 an_s ). Y av oung ing.p ed r f40 1(k) $7,907 0–2 product pri>2 mar– ily5 invested in a mix of equities >5 and– fi10 xed-income securities. >10–20 >20–30 >30 22 Bog P fo H 20 t P Inve ic a a old r k ss r 08 t o e d ise ne c e d a tm ipa d For n, n up o b e 2016 $Sa n r nt y m 2tt mo 0 s’ o t r, aComp he 55 a 0;21 a h, 0 re a 0 c 0H c nd 0 A Ja o p ou ouse f a e c ny Bra the rnnu nt k c e Va In ir nt b d on a y a s nD c l Re ,ltit a li aJuly Burh e nd nc ute e nts rp e h ror ,s .e e a 28 Qua i, m m, Th tvs a , L a e r( 20 uis ine a y Ve rte nd fina not 06 d r rl A si H y , l lons a on o EB a onl t S ld nd up tR ha e 1. o, yn I/ p a 2) tle w ICI a 2012. s C le m nd . ith a v W e onsi 401( e nta St a l fr g sh e e ry d v om k ingt e e a ) Dat rn B nd d e y a d on, e ta t a a b a e )ss b .r y nur a D - Th . e s tC he e 20 nd e e : inc , U. 12 a Se 20 b lllud ut S. o . na 10 c“ a D a 40 ettion s ls e e t h 1( o p oon rnly aoug k w to r)tiA m t P p e h sa ugust h ye la la e qnt uiti n n A sl a of a e fo r ss rs 3, y - r L e . ie n a w nd 20 tFi b ta hic A g or 06 lloc rg 20 ur h , e . e E 13 a ta JC m - t 16 td ion, le p X b a a loy te e -r38 s e for t p fu A e90 -or c e e 06 nd c t fa B oun s t p se (e lli A v ne rc he ng a ugus te rie fit B nt ata s Se sc o la o c tw oun f n 3) ith a c ce ll .ur s, tthe p it la yn Relationship of EBRI/ICI 401(k) Database Plans to the Universe of All 401(k) Plans 0–2 Minor investment options6% are not show5% n; therefore, c4% omponents d5% o not add to 17% 00 percent. Pe 6% rcentages are 9% dollar-weigh 7% ted average7% s. 9% $7,780 8% 7% Sinc at pree v 19 iou 96 s e , tm hep loy Eme prloy s oe re r oll Beene d fit ov e Re r int sea o rc indiv h Inidua stitut l r ee (tE irB em RIe )nt a11% nd acc the oun Itnv s ( eIst RA ms) ent a rC eom not p a inc nylude Insd ti tin t utehe (I CaIna ) h ly asi ve s. w orked A50s mAong ver atg ho 3 ve a 9 .lue se L P 8$ o l% a 2a w n 0 inv n B sho ,0 W 0 ea 5 0 is he tl.– h ta 8 m $ nc ld % C 4e o 0e n b m ,0 s tas, b p 0 la a 0n nc 4 yond . 3 e S% d to fun cfun k d ds, r s, m 3 6.7 8 e .% 7 c one % enty ly fun hir 2.5 d e% s d, p aa nd rtic 4 t2 .he ip 5 .2 % a % nt fixs in 2 ed-inc 0 1.om 16 9% e w e p1 ror e 7 .tm 7 ion o 1% .or 4% e f b l8.4 ika e %lly anc 1t.o 5 e% hold d fun 10 .a 1 d % shigh 1 . . 7% 35.1%36 3% Fi gure 26, Asset Allocation Distributi on of 401(k) Participa10% nt Account Balance to Equity Funds, by Participant Age ...... 27 The P 4 lan Sp EBRI onsor $/I 10C b,0I 0 C P 0ou a –$ rt2 nc ic 0ipa ,il of 000 ntA -D mir ee 32% rc icta e. d 20 Re 16 32% tir. e59 me th An nt 31% Pla nua n D l Su a 29% tar v Ce olle y of 30% ctP ion P rofitr 33% oje Sha crting is 31% ta he nd la40 rg1 e 28% ( st k, ) m Pla os ns 32% t : reRe prflec esent 31% ting ativ 20 e28% 15 re pP os lait n ory As in previous years, the datab Sa ouse rce: Tafor bulati ony se froa mr E- Be RI/Ind CI Parti20 cipan16 t-Dire csh ted Ro etw irems t ent Pha lan D 8t a.t1 ap % Coa ller ctt ioic n Pip rojea ct.nts’ asset allocation varied considerably with Not all participants are offered this investment option (see Figure 22). Salary 7.9% Range 8.0% 45 Figure 51, Loans From 401(k) Plans Tended to Be Small ........................................................................................ 46 fu p a s la Th nd sn p ee ts s ’ Em a ta cror tuld p ic gloy e ip t b a e de nt e a te id s w Be s e.ne nt d e For ifie rfit e d sl ta R.e ight rs ge ea tlr -yc d h m ate Ins or fu etit nd lik ute s e,ly inv ( EB to eR s hold I) to rs is a a wt e no le renp a a st s ro ssom ume fit, no e d e np to q a uit brtis eie in a s a n, a nd fu pub nd m lic u w c p ho h mo oli sc ey t rr ae e rg slik e ea t e rc d ly a h tte o o rg w ha a ani s v e z n a e high tion arestha t tot the doe irs not 20 bala pn ec re ce s of nt along t yee ar r- -teend nur 20 ed 14 p,a r 18 tic ip pe arnt ces a nt ta tthe yeira rc-u ernd ren20 t e $7,495 15 m, ploy and errs’ ising 401 t(o k)19 pl a pns er. ce Re ntt ia re t m ye ea nt $7,421 r- e sa nd vings he 2016 (ld Figur at p er 7.3% 47 evio ).us a W And dam sh L ini > ingt oa 2 s– tn r 5on, aA tc ion (Ma c > tiv D $ 1–100 4 iC t0 y : , 0 U. in 201 0r0 c S. – h$ )Joint . 61.” 0 A,v 015% a 0 IC il 0C a om Ib Re le m a 4 sea it 1 14% tt .e 1 w r % ec w 5 h P on w 7..d 1 e Ta % 12% ol.g rspe 1x 9a .1 ov tc % ion. t/s iv20% e it 14% A e18 s/ vaFi d , ila e no. 7 gfa .b u 3 6le r % .ult 15% e 0 9, a % a 2 /f t2 ile w nd s/ wE w e 15% 7 B b 2.3% .jc .9 RI s% a t .g /Irs e ov su sea /x 17% e 28 4 r - .B 0 c 38 .1 7 % r he .% ie 4- %0 f r, s/ 6. no. 18% sptd aft38 is t0 (D ics 19% /re e1 c t2 ie r.e m 8m 1 % b 117% e e .0nt r% ). -Avail 18% able at GICs are guaranteed investment contracts. $7,346 2.6% 60s 42.1% 5.5% 3.8% 3.5% 2.4% Years 2.1 of % Tenure 1.9% 1.3% 1.4% 1.6% 34.3% Fu t cog onc re the 35 tehe nrtm rr aon otrion o ec , olle acf t cc oun he ting irt a b ac nd acla ou n ac n ne t as a s in b lyzi rng e a ne la annu tnc of ea d unpa l d fun atd id as c on loa $7,292 om m n b p illa a io rla e ns nc d w of es. B it 40 h p 1( ea cst k a)us y pe e la a of n p rs. A aa ll t rtt ihe y ce ipa se arn -fe ta s’ nd ctaor c 20 cs, i o 16 unt t, is 82 s. T not phis e c rc or r ee r nt p ec or of t tt o rre ec fle ent ctly s The 30 2016 EBRI/ICI 401(k) database is a representative sample of the estimated universe of 401(k) plans. At year-end Brady, P>$ ete 2 a r 0, ,0a 0nd 0–$Mic 30,0 h0a 0el Bog 28% dan. 20 28% N16 umber . “A of L 28% ook Plan at P 25% rivate-Se 26% ctor Re 29% tirement 27% Plan I25% ncome A 28% fter ERI 27% SA.” IC25% I Research H Expe olde rie n, nc Sa er . aC h, hic aa nd go: JaP cla k n Sp VanD onsor erhe i. C20 ou01 ncil of a. “CA on mterribu icat. ion Beha $7,191 vior of 401(k) Plan Participants.” Investment Company a of ge inf . or Y m oung ation a er p ba out rtic indi ipant vidu s te ande l 401( d tk o ) fa pla vor n p ea qruit ticy ip fu ant nds aca count nd bs. A alanc s of ed D fun ecd es, w mbehil r 31 e old , $7,153 20 e16 r p, atrhe tic ipa EBn RI ts w /ICe I rd ea m taor baese likely lob Re 65th Th fe byre b e o irt ra nc r hd t ta e io s k a ................................ e Not o A y f l.lp e i401( Th n o : d Fu s eit e x ne d ion e k s s ) iq a n c s ruity p e l u lo d sa e e n n t m p tlu o a e o tu c 1 g rti a 0 c il0 s o fu o la iun n n n d ti D sw t v , eb................................ e cb a ae na s m p k l ro b a ce o enc s lrp l e tima 2 co e 0 tis 0 v e 7 ( a .a tru ls te t . sd the ts , us life c in inurre sg u ra th nnt ce e ................................ sin e epm d ara us p te loy try acce or) a unv tsto e , ra a ns dg a ae la n ye ry pq o o uity a lelon d................................ in vp e ee sis tm rc ee no nnt t pt ro aa dg un e ct ind pr fo im r ic athe ria lyto in va r es so te s .......................... f d ig p inne re thed p ata rerd gne et-sd sa fo ter 47 Parti 101–500 cipants 40.5% 20.4% 5.3% 8.7% 5.1% 14.0% concentration >$ s in e 60 L,e 0ss Th 0q 0uit –$ie a 8n 0 s. A $ ,0 10 00 t ,0 y 0e 0ar-end 4 20 9.16 4% , 7 perc> e$ nt 40 of ,00 40 0 6– .8 $ 1( 5 % 0 k,0 ) 0p 0lan participa 28 nt .4s in t % he Moir re Th twe ant n $ie 1 10 s ha 50 .5 ,0% 0d 0 no equities, $6,856 $7,027 >5– $1 10 0,000 24% 23% 21% 22% Size of 5.2% A23% ccount Balan23% ce 25% 27% 4.9% 26% 24% 26% e b H wm ull ow wp w eloy e t.ic ins ve e i.or Not r/2 r, s or enot 00 g : Ac /pd 8pe c a oa um f/ n ll p t ns p oun bae a laionp r n r18 ctt eic s r s -ipa al09 re a ol nbul ple nt .p artid s d ci pfle ov ha a n a t t in.pd nd e v acr e c ota w uo nc t w fI c b R a e w la $6,946 ss A n.e cs a eb t so r hri.or ee 4 ld 01 inot ng 40 /pd (1k (k i)nc ) f/ p p lalude la b nsrn l ie at fs th d oa e p in t pns d arti f/ — che E ipaB fna RI ts a c ’na t c_ or urre IlB y in ng si _1 t es. To m2 in a pl- o20 yers ll 401 c 12 aa ndp _No atre u ( r k ne 3 e)t 80 oa p f s long a p.401 lr at ni lc oa ipa n k s - .a e nt oy sa s w 20 vings his it 11 h a .pnd dft or wit y hou as t ? More 40D 1i(k str) p ibu lan tion pa ofr ti 40 c1 ip (ka ) P n P art ts la ici h ns pa eld ,nts P equ articiit pa ient s a s,t y and ea A r- sen setd s 2 , by 016 Inv th es a tn m before ent Optith one f s, 2 in 0a 16 ncial market E 16AB llRI/ICI 35 b .s6 e% curi40 ty ind1(k 4 ica .5 te% d.) Da3t.4 abas % e 3 .0% 2.1% 1.9% 1.8% 1.3% 1.5% 1.6% 43.3% Fi t phe rg eur su ye em a27 e r- e t, h nd A astset A 20 the 16 c llo h upd a cnge ataion D te in t of is he the tr ibu a se $6,839 ve td ion o ra ag ta e f 401 a or nd mE e (B k d) RI ia P n ’s a ar atcind c cipa ou IC nt nt I ’ s ong b Aa cla coun noing cet for B r ae la tsea he $6,846 nc e r dc a th in o taE btq ao se uit 4y 01 a s a Fu (knds, )w phole lan p by ra P er a flec tric tiipa ctipa s t nhe n ts’ t A e axpe g cteiv , r itie y.nc e hired par >$ tic 3ipa 0,00 n0 ts hold –$40,00 ing 0 bal23% anced fun 24% ds had 25% $6,821 more t22% han 90 p 23% ercent 26% of their 25% account 23% balance24% s investe 24% d in ba23% lanced 20 Per 16 spe , a cll 4 tivPe e 01 T22 h rce ( e 5k 0 S , )1 n & no. – p P ta 1 la 5 ,g 0 0ns e 8 (D 0 0 0 io s he fa p ne a ld ic nrt de eia m x ci o tb p fot e a 50r n a 0)tl o . s s 3t9 A of $ .cv 3 k% a s4. il ca h7 ob s le t er ni lli 1 fa o8 rton . m 9 w % arw in a kew t s.ic iss zei. ,e lor t iqs u 5, g i.d3 /pd a it% ynd , af/ nt dp he ie ndr u22 d sta 8 ry-t . 08 7 a g% rb o.p u apse d ref p r r ee 4 sp . e7 n r% te asent tion. s about 44 per1 c6 e.n 7% t of that re fu nd tire Th e c m aa e lc v Ret nt, ula er ire ano te m gee d nr t a sis us ac v c iit in no g g sun the h e th t ld o e b in nly a p Mo lla an nc sm rning ae t e p a re is s v s ur io cta ua selc r e tha m ula Lpif loet ytc e ec rs y d a c o n le fo r ro b r lAl le ethe d loc us ove a e r i 20. tion d nto to 0 IRAs m Ind jud a ilre lie g o nxe e n o t r is 401( ne c( tir lus de e e de k me . ) TMo hp ent la terning n n r ue re p a a vd as rri ine ticip ta abr les i2015) s sa gnt o er ns es ra w a .ll v yho For ing yea rs ha s the wa d ork d a ie a nc g q vc a e ua o trun acg yt e ( b s 401( a ela e nc B kra )e s p d la y a,t n baosth set inc Inslude titutd e st Pe ar $6,815 t> spe is $t8ic 0 ca ,t0 iv l info 0e 0 –7, no. $r 1m 00 a,t0 io 4 0, n a 0and bout EB:RI 4 3 Is .1 su %e Brief, no. 238 (Oc 7.3% tober). Ava 4ilab 3le 2. 3a % t www.ici.org/pd 17f/ .3p % er07-04.pdf and to inve $6,717 st in fixed-income securities such as bond funds, GICs and other stable-value funds, or money funds (Figure 21). Source: Tabulatio$6,644 ns from EBRI/I $6,659 CI Participant-Directed Retirement Plan Data Collection Project. 46 Utkus, S Not te ep : Ac he con P unt b., alaa ncnd es are Je pa arti n cipA a. nt Y acoung count ba. la20 nce17 s he. ld H in ow 401(k A ) pm lane s F r ait c ith g a eu pSa re arti v c3 ipe8 as 2 nts’ c01 urre7: V nt empa longua yers anr dd are 20 ne1 t o6 D f plane lofin anse . d Contribution Plan comp> a1 re 0d –2 w 0 ith 11 percent 27% of 401(k26% ) plan pa 26% rticipant26% s in their 26% sixties. 26% More tha 29% n three- 29% quarters28% of 401(k 27% ) plan 29% c >10, c000 All Plans 5 loa p Eoss ndno n a ible c te c c, e s urre ss only ................................ n t in 1 e– m 100 long ptlhe oyer, e d an r a d-t t th a e u 101 b nur sa mse, – a250 ye od vonly e p rsta a................................ te rt yi16 251 c eaipa rs –p o 500 f e n 1 pr – t ac s a rti 25 e cint pr ae ti o 501 h ninc a in– d t1,000 h lude eloa 401ns (k d................................ ) in t pou l1,001 an.this st –2,500 a a nding nalys 2,501 a ist. y H –e 5,000 ow ar-e ................................ evnd e 5,001 r, 20 it– 16 10,000 is im . p On orta av nt e rta o g ............................ not e, ov e e th r atthe the pa tst enur 21 e 52 17 crisis 1, (y 001ea –5,r 0- 0en 0 d 2007), 4 2 a .8 n % d mos1 t h 8.0a %d the m 4a .6j% ority of th 25%9.0eir a % cc4 o .4 u % nts invested in equ 15.it 7% ies. For 5%>$4T 0h ,0 e 0 R0 u– ss $e5 ll0 2,0 000 00 Index m 22% easures th21% e performan22% ce of the 2,20% 000 smalles21% t US compa 24% nies (based 22% on total m20% arket capita21% lization) inc22% luded in the20% Tenure, or Salary ................................ Percentage o................................ f Account Balance Inve................................ sted in Target-date Fund ................................ s .... 29 y of fun Burha P a e ll la Th o a“n d c rte -a y s, c e Sp tion p m, Inv nd ic onsor Ret Not om a a e 2015 l” to nd ie s re : tm p m At 40 e > a eH yq $ n e rC e1( t o e a 1 uiti nt a sou rld d n a 0 -k e v0 d in Comp e ) n e w nc d , g n 0 s y p s 2it 0 e 0il of hla ( 2012) h 1 0 e a thro 6 ln p d r , 80 a - th ine ny e p A nd ug a a lap m . vr n In ee A t sh ra e 2 ir ac s gr 016. t c c e i eic tit pp e o q re aa mp nt a cuity ute vc. n io o u ut20 in 201 le s ns. (Se t ( efu te bICI) m 18 ap lnd a la o n. y 3 cna e s e5, 60 e 1 irs ,s a .ly m 2 A o cthe t79 r ro oo % s h An b nimp gout s l l e a p lo d lle e a 2 o f a nua 7 vr ny C p e .1 d c r i h re in e m na s nt l Su to ig p lto lnge i o a IRAs n a in 2 c re 4 sk r 0ss d v a , 1o (k e re ne a in A 01 c ) y nd ia n 7 p s o a .4, 61 of t tion s 9 rti in c the % cfo c ic pP lu aou r dr n re eofit ts e re dp nt . q w p Te t auity r hire sr e eB Sha $ c ts 7a ee me e 5 n lnt ,3 nting p ua re r 5o nc nt ing 8 rtion vin 2 ; a th e riw e a s on a b re m o 3 l00 e nd euld 8 g o d is. iula f 9, 43 a 3 gn40 p e % b r n aa a e te e cclg 1 ra q a od ( le u uire lnc y n k p fu t y10 )e b ee a and r P d rs lc a e .la ) ne w s fu s c o tima ns nt e rk nd g wi lo n a: in 200 g ss $ a b Re ting )1 ta 2 6b ll ,8 flec 2 y y 3 . , 6 6 p p 6, . % inc ro Ac a ting rticip je calud ond uc nte 20 t ing ba 7 a dnt l16 a n b pmutu c a e a eP slr g a c la e nc e,n nt ae sl e s in e total. The Ind va et sa tm be an se t Oa ptliso c ons O ov ffe erre s d49 by P pla en rcent of the universP ela of ns active 401( Pk a) rt ip cila pan p nts articipants and Ass20 ets percent of all www.eb Sourc ri.or e:g T/pd abulatf/ ion bsr fro iem fs EB pd RI/I f/ C10 I Parti 01 ciib. pantp -D d irec f ted Retirement Pla S n iz De at o a C f A ollcco ection un Proj t B ec alan t. ce For example, among participants in their twenties, the average allocation to equity and balanced funds was 84 percent >20 are –3 pa 0rtic> ipa 5nt ,0 ac 00 count balances 25% held in 40M 3 1(k 7 26% a .) 9 pl n % an y sR at e the c 25% pa 2 e2 rti n .6 ctl i% pa y nt H s' 24% ciurre rent d em 3 4 .pl 0 6% oy 1 24% ers (k ) anPa d arer ne ti 25% 7.c t 2 of i % p pla ann loa ts 27% ns 5 . H .R 0et o % irlem d e nt 26% savings held 26% in plans at1 pre 825% .2 vi% ous 27% H U. p Da old aS. rttaic e .D ipa n, V ea p cu Sa nt lle a rre 1rs in R 0 t r y nm t u a 0 e sFo h, m se e pnt t lr lloJa he g 3 y e 0 e of c r, 0 ir , k 0 a nP t IL n dVa w A a d th eb : e u xnD sor nt The ( m w, ie a h e y icE r s o h h m Va v e tha e rrs a p i, ngua c taloy d kte L s uis m y te h ea eor e r rs 3 d A ,e o B 0 lons f G 0 e pt 0 ane h r rti loup aa cro, ifit g n 80 pe as tis Se , a o t n U nd Va i. nS p t.ngu c he St e c N ur r o 4 um c m e 0it e 1a v p (k y ber n ar e ) nd tn B F A p i e lof of ad sC ing ) m . .P e a u t art nt ss ini he re ie ci . s ir r pants 3 20 t rfo a 1 ac 13 trc ion. in Re oun . P“ lt an 40 ir 2 t e 01 1( bm a5 k lea a )n nc . P t P la Re ers in n A ivsea atss v ee r e c P sh. tte ens Ad A lloc ion P v in e aa ila tq ion, b la uit le n B ie a As, c tull c coun eom tin, A tp a Brb aela st dn r w a cc e itts, h of $0 26–100 Number of Participants in Plan 24.4% y ve ar aia rs, a ble m >$ indic ong N 5o 0t,e: 0 a 18 0 p tR e 0 a os t –rw $ t i6 perc he c0 ipa , 0t ent 0in m 0tages s w e th im 19% tah ay t loa indiv notns add idu 19% ou toat 1 ls s 00 t a h perc nding a 20% ve ent b , bec ea eb n w aus 18% oue t it oh th 14 f ro p unding. 19% eeirr cceu nt Equit rr e of 21% nt y t f unds he em r p e inc lo 21% m y lude a eini rs a mng utnd 19% ual ac fm c unds ount ay , no bank 19% bta rc la e oflec n llec c20% e tt iv re tehe m ale ine 18% ngth of d unpa id. a fu S Fit ou g nd re ure s trces a ire , e 21. m xc ee ha xa nt nd ng m bp y e le Ty -a tr , ls a pe m o d e or cs d o e ns of fu tih nd d D a en s ri a ng (t tETFs h a r re e e tir )-,q e c ua me los rnt teed rinc -s of end ome p fu a nd rfro tic sm ,ipa aS nn o dtc s in t un ial it Se inv he curity ir es ttme w , e dnt nt efine ie trus s ha d tb sd e (n UITs m efit ore ) p lit a n ha ns the n 80 , IR Unit As p , e ead rn c d S e ta nt othe t e of s,r t a he DC nd ir p s4 la imi 01 ns la (,k r ) Brady, PeteE rq , uK itim y, bb oe nr dly , m B our ney h,a am nd, /o arnd bala Sa ncrea dh fuH nold ds en. 2012. 27 7 The 8.,7% 869 Success of t 1 40s he 0,7 8 U. 9,S. 791Retirement $6 7Sy 2,9s8t1 e,m 45 2(,D 03e 6cember). E Axpe ge rienc So emu p e rc ld o. e y: e C T rshi a b ou r c lro aa ti lg lo en do: s o fro veP m r ila n EBRI/I ton Sp IRAs CI aonsor Pa re n rtio cit pin a c nC ltu -Dir dou ed e. cnc tedil of Retirem A em nt Pl er an ic Dat a. a Collection Project. 19 98 • (27 Fig .1 mi ure 37 llion ). C 40 on 1( ck e)nt prla atn p ion is hig articipa he ntst s, in am ong recently hired participants with taarget-date funds; at year-end 2016, 401(k) plans.Al lThe distribution of a 38ss .6% ets, pa2 rt 1ic .9ip %ants, and 3. 8p % lans in the 7.5 % databa4 se .9% for 2016 is similar to 17t.he 8% universe of Formerly the Lehm57 an . B 4% rothers U.S. Aggregate Bond Index, the Barclays Capital U.S. Aggregate Bond Index is composed of securities 1996 1999 2002 2007 2008 2010 2012 2013 2014 2015 2016 of 17 ass>e 3t0 s, compared with a13% bout 63 16% percent 15% of assets a 17% mong 17% participa18% nts in the 19% ir sixtie19% s. Young18% er partic17% ipants ha 19% d trusts, life insurance separate accH ount ig 101 sh a , and C –2,500 o any nc po en otr led ainv tio es n ts m ent in pro Ta duc rgte prim t-D arily ate inv F es utn ed din sequities. In addition, 401(k) 47 a c 20 ht om nd t09 ps:/ p L a oa For n /iSo y n ns m ust A rc t it c eo 55 : tut c Tiv a k 0 ion bi 0 A u try laose ti a o in 201 nnu n l.v s fro w am ngua it a l Re h p EBRI/I 2.”la rp CI Id n size, C or .c Pa It om rti s Re c i( psea Ve a /i n a in p t-Dir r m si rc e/pd on ch P a ter dt f/ Ret , 1. eb H r1) ispe re e A m c . S17 e aW nc us t t Pl a iv .p e ash ne d fe Dat ingt 19 f w a Col , sm on, no. leca tioll p D n12 Pro C, : la jea U. cns t. nd S. offe ED BeRI rp ea dIr ss tcm om ue ent pBa rof ny iefL ,st ano. b oc or k, 39 a Es 4 (D mapn inv loy ece ee e m sB t bm e ene re)n . fit tA s Se op vat ilio a cb n. ur leit y a t fu a pb o nd For s out sisb o ly 401( one ff fro ere -km fif ) d a tp to h o srs einv evf 4 t iou fi e01 g ssto ure e (rs k m s ) , p in p loy sla e ju e n p me ris Inve d nt aic rttions s (ic fo tm ipa r ee nt n w xta o s in t Comp mp rldw lehe id ,a s e ny ir e . e ICI si In V xa s ts tit ie nD es. ute ee k rhe s 2018. to i 2014) enc oura . For ge re adfh ere ere nc nc es e to to o hig the h r esthic uch al re ss ta end arcah, rd s s,e e p ro Mmo acDo te nald >$S 6ou 0,r0 c0 e: 0 T – ab O $7 ul f 0 w ati ,0 on h0 ic s 0 h f: r om tar E g16% B eRI/ICI t-daEx teP farti p u17% no cd ipa s su nt a-r rDi e e ra c ec 18% to nted o pEq Reti tionu rem 16% iti en e t s Pl 5 an I3 n ,Data 1 c 17% 2r2e Col as lec etid 19% on A Prm ojec 8o ,t. 5n 19% 14 g ,8 4 87 01(k 17% ) $ 17% 4 9 8 , 5 6 8 , 2 18% 7 2 , 5 9 3 17% Fi U t im .g Sur e . D e the e28 py Not a , r h eP t: a m e Ac vre e cc ont e up nnt t aof br a at lag ic L ne cipa a e b sof aor t ree 40 pd d a rti a 1( icn a tia pk a ) nindic t 40 P acla co1( n P ua nk t tbe )aa lp atrnh tla cia e cn. sipa t h loa eOne ldn intn a s Wi 40 1r(k m e) a toun phou son t lans a tt t s t th ha E ee q ptnd a uit rtijob cy ipt ao Fu nt tsb e ’ nd cnur e u rre aB nene t a em m la g pa nc lligib oy ye e rs not s ale nW d p r aho re e or flect nt eH ion o t oa f v ple le an ngth of f p E loaq nla ui s. n a Ret ty ire E ss p m xpo a e er ntt t s. i ssu c avipa inr ge st, hion in eb ldy in the pla Sou n a rce: cT cab oun ulatiton s inv s from es EtB eRI/ICI d in e Parti quit cipaie nts a -Direc t ted ye a Reti r-e rem nd en20 t Plan 16 Data , up 19 Col fr lec om tion le Prss ojec tt.han half of participants in their twenties at Washington, co Pvle a D rn inC s g: g W o Ivn ie th v rne m Cst e o nm m t ap e nd a nt n co yC r p Som otro atc ep k ba o an n n dy d s , I G m ns Io C rtt s git aut / gS et -e b aa . b clA k eev -d V a sa il ela c u ub e ril te F ieu sa ,n t a d ns w d aw ssw et.ic -bai.or ckedg s/pd ecurif/ tiep s p (rr e_1 bala2 n_s ceduc mo cne th ss ly _ by r e mtair rke em t ent.pdf Tabl Groupe o Zf erC o ont 1–10% ents >10–20% >20–30% >30–40% >40–50% >50–60% >60–70% >70–80% >80–90% >90–100% 84 Hold pe er n, ceSa nt part rof ah, icr ipant eacnd esn m tJa ly ay c hi ho k rV ld ea d equit n p Dae ies rrthe i c thro ipa i. ugh 20 nts hold 01 balanc b. “ ed ing 40 funds 1( ta kr) g o P r ec la to -n As d ma pany teset fun stoA c dlloc ks he —sa ee tld ion, Figure mor A30 e cc tount fh or atn 90 he B dis a ltp a ribut nc erc io ee s, n nt oa f of nd 401(k tL he ) oa plan irn A acc coun tivity t b in 1 ala99 nce 9.” s p Se 41lavns er a al r s r ee cp or or dtkeede p bing y the or g Ua .S ni.za Dteion pas p rtmre ov ntide of dL r ae bcor or d (F s on igure a c4) tiv.e p articipants in 401(k) plans at year-end 2016. These Accou pln an t s S at iz pre e vious employers or rolled over into IRAs are not included. The tenure variable is generally years working at current employer, and thus may overstate years of consistently higher allocations to targe2,501 t-dat– e10 fun ,00d 0s. A target-date, or lifecycle, fund pursues a long-term investment p and ub For liMo c y un o ea re dre - 2011 e rs nd ta nd 2015 aing nd ,H d aa o nd ta ld,e o n sthe ea end rw H oV is ld a ee nD a n de e vrhe ta Pe a nc l. i e rce 2005. 2017 the nta a inte g For .e ore f a re sn t 43% ce sa n o ntf a lyly fu hsind re is d s o ,f 4 the 0 the 1(k) ir p s p oh a sa rt sre ib icilho p ea im ld nte sprs a c , t do irfe a cto uto rsma , atic nd inc adv re isaesrs es . ICI in pc aa rtici rriep sa o nts ut ’ c 80 E ap qiu ta itly iz,a b tio on n )d . T , h m eo in nd ee y x,' sa tn od ta /lo rre tb ua rn la cn oc ne sd is tfsu o nfd ps ri,c e appreciation/depreciation plus income as a percentage of the original investment. For A wd w m w eini .ic xasi.or m t>$ rp a7 g t le ion (Ja 0 /pd , ,0 1–100 2 0 f/ 0p –p e $e n r8c rua 0 e 19 ,nt 0r0 - y 12 0)of . .p A pv d aa 16% r fila ta icnd b ipa le 4 w 1 n a .t 8 w 15% ts in s % w w.e ww b m r.d i.or a 1 16% ol.g ll p 3.6 g% /pd la ov ns /s f/ 15% ( it b10 e rie s/ 0fs 7 d .p e p 7a % fa d 16% rf/ tult iE cipa B /fRI ile n_ t s/ 18% s or I 7B e .8_0 b %sa fe 12 /w r-e 17% 1 esea r 3.No 1). 9w r % cehe 39 re 16% r 4 s/ offe .401 st 1a 5 re .t k 3 is d -% 16% Up t iccom s d/r at p eea t- i16% n r20 e 5 y.m 1 1 st % e 2.p o nt ck d -16% fa s an Participants Betw Fi egu en re 20 17 07 and 2016 pP aa ac rtir cc t ipio ac ti unt ipa on i n balanc n thte A 40g 1 es (k e) tor p o la equit n . Te Com nur ies po.n T e en he , ts2 m t01 enure ay n6 o t ................................ a vdariable d to 100is pe generally rcent becau y sears e of ro w uo n................................ drk ining g. at current employer, and ................................ thus may overstate years o............... f 29 P 40 Sot ize 1( e •rk b )11 a o p , f 0,79 la Ja n, 40 m4 e p e1(k a s, S rm ticp tula e ) loy v P e re ln F. y lan r -a spo m V o e A ns ng nt c or i, c old eo adnd unt e40 r D p 1( a a rv k B tid )ic alanc p ip A la a . n nt W s, hold s, is t ise. es 20 h ing a 0t7. “ t heRis preop of ose 40d1( rk e)g ula Platns ions , L ifet forim 40 e1( Ek a) r nin plagns s, a wnd ereW not ea ltin h traod t uced 20s 3 ye 5.a 9r% -end 20 1.107 %. Ove1 ra .0 ll, mo % re t1ha .0% n 90 pe0 rc .9 e% nt of 401 1.( 0k % ) partic1 ipa .3% nts had0 a .9 t % least so1m .0e % investm 1.e 0nt % in eq5 uit 4.9 ie % s 18 b, c Investment Company b Institute Perspective 7, no. 1 (January), and EBRI Issue Brief, no. 230 (February). Available at in Tab tale rg of et-C dont atee fun ntsd ................................ s (Figure 38). Sixty-th ................................ ree percent of recently ................................ hired participants hold ................................ ing non-target-date.................. balanced 3 plan r< e$c1o 0r,d 0 Sk 0 oe 0 ure cep se : r Bs inc loombe lude rg, B12% a m rclaut ysu Ga lo l fund b11% al Inv >10, esc too r00 sm ,11% Fr 0 paa nnie k Rus, b ss12% ella Cn ok ms, ins pany11% , au ndr a Sn tac ne da 12% rc dom & Pp ooa r'nie s16% . s, and 16% consultin 13% g firms. A 11% lthough th 10%e its c o ntrib Es int tim erna ution aSo te tional us rc o ra e a : f n 101–500 Tte d a th b w s G ue lo a Iin C tirk nu o sna s thro mb a uto fro nm de /ma o EBRI/I ug r r o otic h f th CI 4 ICI ee 01 r Pa nr srti t( Glob a o ck ib 3 p ll )la 5 me e np . t3 v a -la Dir % a l, nt ns lu ew c e tp e ith a fd lu a nd Ret n ns d o 2 is re ff a , 1 m .c ic s 0tiv ee % e ne t se Pl V in ap n a a Dat nD Lrtici oand e Col r6 p he 2 o . la e 9 2 n, cnts ,% i ti 3 o a 9 H nn 1 Pro o a dng re jCop ec t.b Kon ae 6 sla .e 5 g d % nd , o a 7 n nd 2008, ,9a 4 W 9 c3 ,o 6 a .3 mb 1s V % 0hing anD inate ti orhe o n, n 1 1 i DC. o.2010, f 3 $% 5 d 5 a 8ta ,6 9 a fro 8 nd ,6m 3 V 8 4,a .the 6 5nD 1 % 7 U.S erhe . i and Cha Utkus ng , e Ss te in phe Con n P c., entra and tio Jens an iA n . Equ Young itie. s Si 2018 nc hol. e d th H inow ge t hFi e A na tm ype n er c ioc ifa a fu l Sa n Cr dv is in eis d s 2 ica 01 a te , b d8: V , 2a0ngua 16 rd 2017 Defined Contribution Plan strategy, >$ us part 80 ing ,ic 00 ipat 0 a– io m $9 n ix of 0 in ,0 the 00a 401 ss (k e) 14% tplan. classes t 14% hat 50s follow 15% a pr14% edeterm 14% ined rea 16% llocation, 16% typica 15% lly rebala 14% ncing t15% o shift it 14% s focus 0% 28 inv bulleest tins me/2 nt00 op 9pe tion, nsionp whille a nbul 49 ple etrin.pd centRa fof tio parof ticipa 40nt 1(k) s in p Plan lansA w cc ith mor ount eBa tha lanc n 5,0 e 00 to Sa partlar icipy a 21 , nt .6% s were offered company Percentage of 401(k) participants by age of participant, year-end 2007 and year-end 2016 40 Bright 1(k) Sc op Plan L e and oan Inve Ac stm te ivi ntt y Varie Compans y I W nst itih tut P ea . rt 20 ici 18pan . Tht e A Bge right , Ten Scopure e/IC , IAc De cfin ount ed C Ba ontlanc ribute ion P , and lan P Sa rofile lary: A Close unt Re 42 til 198 ireme1. nt.” NBER Working Paper, no. 13 a 091 (May). Cambridge, MA: National Bureau of Economic Research. Available Figur 30s e4 as $ 2 t7 .y 0 0e % ,0 a0 r0 -end 2.420 %16. 1.9% 1.8% 1.4% 1.4% 1.6% 1.2% 1.4% 1.5% 43.4% 501–1,000 36.1% 17.3% 5.8% 5.6% 2.5% 9.7% 13.6% At year-end 2016, the average account balance was $75,358 and the median account balance was $16,836 (Figure 9), De fun w Age Luc w For pd a w as s ha rtm .ic a $y 2010. 1 nd e i.or 0a e ,d 0 r nt - 0 Ten g m e 0 /pd o nd For – o f $ r L e 2 ure 1998 f/ a 0 a tb ,p ha O 0 d o e 0 fis r’s r 0 of n 90 w 07 c dus h a Bure i- 40 ta c01 sh ion ,:p 1( .p ts e a a 26% e r ru d o e g c k) f e f e o H tthe f nt a - d o P nd L a ld a lan Pa of t e b v e w 23% o a fn, t uri r he w n e V S dw ty s ta ir a .e nD rt tis a a ob rc f icipan e e trc 22% fic rhe i.or a ou as n c to a o nt i, g p n rs /pd ta d ib t o nd s n ( a Em e f/ 26% l a .Quic g b nc p .r,loy ie e tfs a k s2 e xe 0 p 2000. inv e,d 9 25% sBe 0 f/ ,e 6s 02 st ne a e v01 fit ing d sib. in t s 26% S,e p mo hose c durity f rtg 5 36 ,5 fun a 2A 28% 2 gd ,e 7minis d s 1s a ,9 chil ttr y d 29% ae re tion. an) r-e tha $ nd S 3e 828% t 2 e20 , a 5 dff 1i16 9 sec ,c 2us . t 8 4 re s ,26% 7 ion p 3la 1 c in em no e26% tnt e 2 ra . tes, EBRI/ICI pr19 oje 99ct 20 ha 00 s colle 2001 cte20 d 02 data 20 fr 03 om20 19 049620 thr 05oug 20h 2 06 0 21 20 16 .07 9% , the 20 08 univ 20 e09 rse 20 of 10 dat20 a 11 prov 20 ide 12rs m 2013 ay v 20 ar 14 y fr20 om 15 ye 20 ar 16 to H Dold atae . n, Va>$ Sa lle So 9r y0 a urc ,Fo h, 00 e: r 0 Ja g T –e $ abulat c, 1 k0 P Va 0 A ,io 0 : nD 0 ns The 0 e fro rh m Va 13% e EB i,ngua L Ruis I/ICr Id 13% A P lons art Gric oup ipant o, 13% , a-D Va nd irec ngu St ted ea v 13% R r ed et n B irem Ce ant ss ent 13% e . r P20 lan fo16 rD Re at a15% . a t“ C ir 40 o ellec m 1( e tk io n 15% )t n P P Re la ron As sea ject14% .rc sh. et A Av lloc a 13% ila at bion, le at13% A ccount14% Balances, fr Mor om e g 40 row 1(k th to inc ) plan poam rte ic ipa as t nh ts he e fun ld d eaq puit prie oa s a che t s yeaand r-ep nd ass 2e 0s it 16 s com targ pe atr e dd a tw e.ith ye cAt a yre-a en r-d e nd 2007 20, 16 a, nd 21a.3 la p rg ee rcre p nt e rof cen 40 ta1( ge k ) Figures ................................ 60 ................................ by Par ................................ ticipant Age and T 2................................ 0 enure 16 EBRI/ICI ................................. 4 Figure 29, Average Asset Allocation for 40 P1( erck P en e )t rac P ge e la n o tn P a f g ae c c a o or fut n A ic t c b ipa c ao lau nnt n cte s B in aW v la en sit tc e hou e d In inv t e e q s E utiq e tid e ui s in t y B a Fu lannd cedB Fa ula ndn sces, by Participant Age or st 6 oc•k a $2 s .0 tr an inv ill 1i,on e 00 s1 tm – in a 5e ,0n 0 ss t 0 e op ts. tio n in 20 3816 .0% . Thus, 19 t.o 1% analyze the 4.6 % potential e 6.5ff %ect of 2p .1 la % n size, t9 he .7% remaining 11.p 8% anels of Look at 401(k) Plans, 2015. San Diego, CA: BrightScope and Washington, DC: Investment Company Institute. Available a40s t www.nb 49.e E 7r q % .or uityg , /pa bo 3n .5 d p,% e m ro sn /w1 ey, 30 2 an .5 d 91 % /or balanc2 e.d 2 % funds, 1.6% 1.5% 1.5% 1.2% 1.4% 1.5% 33.5% s eTh e Bra is up dy d a 2010. te exte For nds a n pa rly ev siou is o sf find the ing imp s afro ct m of the cha p ng roeje s cin t fo So r c1 ia 996 l Sethro curity ug o h n 2015. retire me For nt y ep aa rtte -enrns d 2015 , see rGu esult stma s, n sea end Ho S ld te einme n et ie al. r I bn th ut be a > la $ 20 2n 016 c ,0 e0 s v E 0– Ba $RI 3 rie 0/,I d 0C 0 w I 0 ide 401( ly. k 26% )For da teaxa ba 25% m se, ple 86 , a b p 22% ou erct etnt hr e of 27% e-p qa ua rtirc tipa e26% rsn of ts w the e26% r p e ain p rticip laa ns 28% nt offe s in t rin h 29% e g 20 loa16 ns . E 30% H Bow RI/e IC ve I28% r40 , r1( ela kt)iv d 28% ea ly ta fb ea w se Figure 1, 401(k) Plan Characteristics, by Number of PlaFigure n Participa 47nts, 2016 ................................ 37 ............................... 9 Figure Figure 15 8 year. In a >$d1d 0it 0ion, ,000–t$ he 20 0 p,la 00ns 0 w 10% ith any g 9% iven pr10% ovider m 9% ay change 10% from 11% year to 11% year, w 10% hich cha 10% nges the 10% plans 10% provided. >5,000 41.1% 15.1% Figure M 6.e 4% d 11 ian 6.2% 1.5% 11.5% 12.8% U. ha The a ht nd tS. d p s:/ highe L d D oa ae /i tp a n ns a br A r a t tit c se c m tut on iv einc ion nt ic te y lude nt of a in 201 l.v r >L a 8a 0a ts 401 A io ngua p bg eor ns 4.” r ec e G , nin ( r E r to k Id m u C ).c e p Ip p q om Re > loy a uit 6r0tsea /i ie ie tc oa e ipa s. Ove 8m 0r B c p /pd e nt h P ene rc > s e 0 f/ r n e fit a –a tH r 5 cll, s spe 0 rA oss p Se S18 a e >tc r4 c c ty 0 e a ur iv .p e n t oe tw a it d 6 ry ide 22 f 0 P - e p A erc end , d rr cno. m a een nnge 20 ini t 3, a > tag 16 s5 t0 of r > , – a 2 e, nd 9 le t 0a 0 ion. tss g o p 20 E e e 4 B r 0 tca 16 h 2 RI p end e a 01 nrn 8 t cI e2e s t ne su t nur . pe e P rrB > e c iv 0r e ie g a tnt ot r f > e 2 ou , 9 0 of 0 no. P pp e p e s. A 40 re ns crec 42 n1( ion P e tt n3 (A k ty)e p Ze a la p lra rn B -r on p e il) nd . ull a Ar20 e v tic tain, A 16 il ipa ab , nt le b s he st ar t acld t of no 19 a 43ssets in the database were invested in target-date funFigure ds, up fr 45 om 19.8 percent in 2015. Among participants in their Tenure ................................................................................................................................................... 30 Old Figur ere , long 25 ge roup r-tenur plae ns d, b ay nd inhighe vestmre -inc nt op omte ion ps a artind cipa pn latn si s tezned . to have larger account balances, which are important for ? Abou and t two compa -n th y s irds tock of 401(k) plans, covering a953 bout three-qu 4a ,3r 5ters 4,020 of 401(k $) p 348la ,87n 1,0 p6a 2r ,8 ti 5c 1ipants, a 2008 2017a. t In Th ww e the a N w la nd ot R .ic te e: e d 2013. s a i.or s Tults t t he aab a g v a na /pd a fo sFor ile ly r a, sb f/ e is 401( la a p e inc rli p d d le r ud is a _1 k r tc es )a y us 8_ p e 40 fro la s ad 1(k r in o s m cn p ) p a pl the la a r oe an rticip f n_p the a pa U.S va rti r a iofile v c la .nts ia pa b De rie le nt ’ _4 s p ho t in y w a 0 irtm ld o th e 1k f ing a tw m rli e .p o nt e s e or d a r o fs fe o if, ur s f ws er a L ue ea nd s yb s ea tha o c o rs ro f a t of nc ICI re c te a e nu n ntra fo R re b r ee s p in tion e lu a th as n rc e eyy in, d h ea e to P a r i c e rnd o re 2015 s mp iv cp at aelua ed a cny ti ( an v te se e d s e A to in me U.S a ck pl ric an ha . De a of vns e fep r’ ta ing e rrtm e nd c tire om e ed nt pa m to ny eont f s dto L era cc e kb lia as ne o dr, ine an . In ssth , se e e I Hnt 50s old rod en, ucSa t 5ion 3r .6 a ................................ % h, and 3.Ja 8% ck Van2 D .6 e% rhe................................ i. 202 01 .3c % . “The I 1m .7p % act ................................ of E 1m .5% ployer-Se 1.4 le % cted ................................ Inv 1e .1st %ment Op 1.2t% ions on .......................... 1 40 .41( %k) Pla 2n 9 .4% 7 Balanced fund, target-date fund, and non-target-date bFigure alanced19 fund use varied somewhat by age among recently hired >$30,000A –$ ll40,000 25% 40 25% .7% 23% 15.6% 26% 6.2% 26% 26% 6.3% 28% 1.6% 28% 11.3%30% 1228% .6% 29% p ha ar dt ia cipa ccoun nts t m ba ala de n c us es t e of hatFew this we 401(k) b re or 401(k) low roweing Plan A r tha Par prn iv$ ile ticip cco 75 ge ,3 un — 58 ant w t , hic Balances ts he h Had si ha ze s b O of eut e tG n th he stan reater ae v e cdin raase g Th eg for a an 401(k) c ctount he $100,000, 21 b Lo a ye laan ans; rc s t e. ha I n fa t the ct , d41 ata .0 b apse erc hean s t of >$200,000 20s 5% 5% 85% .3% 4% F (m ig id u-re point 5% 28 6 ).4%5% 5% 5% 85.2% 4% 4% 4% Thus, aggregate figur Age es in t Comh po is r sitio eporPe n t gof r e ac ne e Sele r n at lly C cted sh ha ould n g 401(k) e not in T be Plan A o ta usle d R e tcc o tu e ou r st nim n It n ad Balance tee tx im es e treCateg nds. Re ories cords were encrypted investm (p en et r o cp e tin ot n . of participants) 29 20 The ww 10 w20 .ic For 16 i.or m E g B 55 /pd RI 0/f/ 0 A IC pe Innu rd 22 ata -a03 l Re ba.p se p dor fc ov a ts nd e Percent (r Ve s 49 p wr w siw on .e eb ag 1. rc ri.or e 0) e nt . of g W of /pd a Eligib tsh he f/ingt b uni riele on, fs ve p401( rdse D f/CEof : B k) U. RI 40 S. Plan Part _1( IB Dk _4 e )p p 23 ala rt.n p m Aicip p era nt 1r6.40 t an iof cipL ts a 1k ant bUp or s, 20 p , dE at m ep .p eloy rd cfe e nt e B of ene pla fit ns Se s, an cd ur 44 ity t e 49 w qe uit p nt eie ie rc s, d s, ent 25 47 ow 0% of .6 n fr p p a e r om O t ric fce ipa w n 13 h t in c of h p ts w :e t tr a he c rg e ee ir r nt te -40 d in t a att1( e y fhe k e u) n a ir dra s -ss tehi a nd e rrt e ts w ie a 20 n s o o 07 eprr te , i ofor n a inv nd tie est n s, w e ea dr 610 hil ly in e h t a a 14 r lf (4 g e pte - 8d r c p aet ent e r c3 fun e of ,3 nt 9d p 6 ) ,s a a 2 hr 1a t4ic td y ip m ea a or nt r-e s w e nd th$ e a2 20 r n 80 6 e4 16 ,in t 86 ; 7 phe ,a e 6m 5 rir c 4ong e , 4 tnt w 18 e of p nt aie trhe ts, iciipa r nts $6 40 a 0,000 m Bra Rus Emp ( w w a ew ke dsell e w loy t y ing ,o . ic f Burha e20 i.o e th t he B e rg 00 Ne oc tir /ne m, e o re :I C ll in nde fit s o aa m e c p s n pa om s o d x. Ta rc n S e e e nH h/ e o tc s o f -urity inv rld dEnro e c o e om p ne on la ts Ad ato n 20 c a dde ,r iminis ts m n 12. oW / 1e 2001, e 0A b 0 nt For : ri ptra e Fr _ic rne cetion a s np ite imula nk ) a b d ea rticip ca s in r nd 2018a). Ru use t E ion ss a oBR fe nts e rt o ll C ir re uI n ’e d Is s ia n m u o gw s .lm e ue ts an p re t sa B .ho n n rie ey w sFor . fs ing S& (o w f long w P the the w 50 . e e c ne 0. N b r o-ri.o ntrib e te dnur e rg to w ution / e p d Yub d ior v e p s li k r a c s : o a r ify f St ttions ic e a m m ip nda a a p/y nt lio b r ha y ). s d e in t r v & -es p P inc he o oor’s. ns ir re o a tre w see d dnt re aie nd tire s w s m oit e m h s nt e p p ala la lan ns rie s included target-date funds in their investment lineup at year-end 2016. At year-end 2016, M inor investment options are not shown; therefore, row percentages do not add to 100 percent. Percentages are dollar-weighted averages. Fi 60s gure 2, 5D Ratio 5.istrib 4% of utio 3 401(k) .6n % of 40 Plan 1 2.(k) 3% P A lan ccou s,2 P .nt 1 ar % ticip Balance an 1ts, .5%an to d Sala Asset 1.4 ry % s fo ................................ r Par 1.3ticip % ant1s .0in T % ................................ heir 1.60s, 1% by 1 Ten .3%ure ................ 28.8% 9 P pa ar rt tiic c> ipa ipa So $4 un nt 0 rc,t e 0 s s’ : 0 — T0 A a– r bse $ uset A lc 5 ae 0 tio ,nt 0 ns 0lllo y 0 fro hir c ma 30s EBRI/I teion d 24% p s: P CI arPa tic rrti eip lim c25% ia pa nt ina nts in t -Dir ry e cFi t23% e he 1 d nding 1 Ret .ir 1 % t ire w m s.” een 25% nt t W ie Pla or s w n k Dat ing er a 26% e Col p m a leor p c 7 ti e .e o 4rn % lik p 25% Pro re e je ly p ca t.tro edb 27% e for highly the 27% C 8 c 1 eonc .nt 5%ee r nt fo 29% rra P teed ns in suc ion a 28%nd h funds. 29%For by Participant Age and Tenure t pra arctk iceipa d Sa 40 nt lary s h 1( R ka a ) n dp g la e acn p coun arttic bipa alant nc s. A es of t ye leass r- e tha nd Lo n $ 20 ans 10 16,000 , 19 Tend , pw erhil c ed ee nt 19. to of 5 Be Small t hose perceent ligib of le p a for rtic loa ipans nt s ha hadd 40 ac 1( coun k) ptla b n lo alanc ans es g reater VanDerhei, So b Ja urcec : k T aL bPerc u. la20 tions 0entage f2. “ rom ETh BRIe /IC of parti Role I Partici pof antc -C Diipants om rected p a Re ny w tire m iSt th ento ac P clk an c in Dount ata40 Co1( llebal ctk io) n anc P Prla ojens ctes . .” iW n s rit pec ten st ified ranges atement for , 2016 the House Education and EBRI/ICI 401(kPe ) Dr ac tae bn ase ta ................................ ge of 401(k) Plan................................ Participants With ................................ out Equity Fund................................ Balances ...... 7 before inclus Eqion in uity, bot nhe d, m d oa nt ea yb , a an se d/otro ba clon anW cceeith da fl th u n401(k) de s , identLo ity ans, of emby ploy Plan S ers and ize e, 2016 mployees, but were coded so that both could Fi a sp nd g our ns Se o o c rs 30 ia ma l , SAe A y sc set A turity ha arget ve -dat llo to cha e cinc fa und ng tion to o te me ypic d p ally iln a E rebalanc n re q Sd uit & tir e Ps e ie 5ies me g 0s Va 0n it ¹ snt, ( po se r rt ie e s fe od R V lio e u a W sBr tnD o se ide bec a lle d 2rhe y 0 o ly 0 m 2016. 0e A ²i les m 200 so fng o2) For cB us . a 40 red In ca la o n 1( ya n sa d k gro Cn d ) a a iw pP tion, ly itth la as land n P is U . S s m o .o a f o A me r re inc gtgic fro eo ip co gus me f aa ted e this nt B o ne s on n ................................ inc m d a r In o o d S m v eo e e xme c ³as ia itl nt appro Sem curity ac ay hes b e and c lthe aimi ............... re ng sult , seo ef 32 A a p 25 c e dc r m p c ount e e ini nt rcse tof b rnt a at 40 la ion (N wn e 1( cre e ks inv )in t ov pla e he e m n sir b tae e ss fif d r) e tin e . ie ts As, a . vq The auit ila nd b ie p le 11 s a roje a tt p c y e w te r w c a is e r w nt -uni e .d nd w ol.g qe ue 20 re ov b 16 in t /s ec , it a h ce u om es/ se ird p si e it a xt fa rinc e ie ult ds ( lude /w fil Fi iteh 44 g s d s/ ur ea e b t sa p a 5, up e /r p rc re ov ese n pide e ta ra r c t d p he a y 1b 9ne e .r y 2a s/ l) r a-s . e t w a The nd ide tis20 t ic m va s/ 07 erd r ie e ia (ttF y ir n a igur e of m gp e e eln a 31 of tn r -)t. he ecor d in t Choi, heir Ja si mxets J., ies, 18 Da .4 vid pe Lra cibso 25 en.t 5% n, of B the rigit ir t40 e C 1( . kMa ) ad ss ria etn, s w and ereA inv ndre est w e d Me in trtic ak rg . e 2t00 -d 50s a 1. “ te D fun efin ds. e d Contribution Pensions: Plan Distribution of Equity Fund Allocations and Participant Exposure to Equities between $20,000 and $4 40s 0,000, the median a 12 c.c 8ou % nt balance was $ 7.7,31 0% 9 in 2016 (Figur 80 e. 216 % ). Longer-tenured 21 percent of the assets in the EBRI/ICI 401(k) database were 2 4inv .8 ested in target-date funds and more than All >$54 0,7 0.0 80 % –$60,0 30 .0 0% 24% 2.1% 24% b 2.0%22% 1.524% % 1 25% .4% 24% 1.4% 25%1.1%26% 1.328% % 1 27% .4% 29% 37.2% 20 7 Retireme $nt 20 ,Re 000 sea –40 rc ,0h (C 00 PRR) 17% Current19% Pension P 18% olicy I 18% ssues C17% onferenc 21% e, at Mia 19% mi Univ 17% ersity, 14% Oxford, 15% OH, June 15% 8–9, example, 62 pas pse es rc the ent target of dat ree co efnt the ly fund, hir w e hic d Perc h p isa us rent tually icipa age inc 7n luded tof s in t part in Selec the he ic fund’ ipants ir tt sw ed nam ent Y w e.ears it ie h s he accld ount mor balances e than 90 percent of their account balances 100% and company stock, and GICs and/or Percentage, 2016 46.5% out than $ standing 100,00 (0 ( FigFi urgeur 47 e )10 . A )s i . Tn p he rv ea vrious iation in years, loa accoun n a t c bta iv la itn yc e va s p rieas w rtlyit rh a efle gc et, s ttehe nur 30 .1 eeff , eacctc sount of p abra tilc aipa nce n, t a and ge, sa te la nur ry.e O , f H W Bra re Th old g or For ula de k y e for EB n, ta eion n t c R Sa a a e s I/ l. na r C p ICI 2017. aut om ly h, s 401( in is m Ja o p it cf la tk k e the c )Va e ed Subcom a b nD cta y ha b the eng a rh s e e e Ps i, m e e in n n L its v uis tion a iron ece c A o on P me lons un rote E nt t m b o, ca ition p sla a loy cnc nd ert Ac e eifie rSt st - E o e od m f f v c e to 200 p o n B lo ns by 6 e is e a ( fu te ss eP nt ll P Re . y A) 20 p la c,o a 16 tw rticip mp ions hic b. lia h “a H nt W nts lie mit ha w a rith in ing te d D the the oe the on s EB IS le “C E R O n on n I/ g -r27002 th si ICI on st oe a 401( f n nd tim tInf P B k ea o ) e r p rma y t d a ic ond a rticip ip ta tion a b: taion in E a snts nha e S ein c urity c n the oculd ing w Au b ae k d e it of b e tracked b 50 y researchers over mult iple years. Data provided for each participant included date of birth, from which an Who Have Equity Exposure, by Participant Age or Tenure, 2016 k U. be ull S. ep et e D ins re s a p/2 and, r01 t cm0pe e the ntns rof efor ionp La eb , lor a 50s rnbul e, pB re ur le sent e tin.pd au o s tf L he f aa bcor tiv St it 13ya . 2tof % istp icas. 20 rticip12 ant . s in 401 Na3t 5ion .16.3 a% l C (k)o p m la pn es of nsatv ion S arying ur 80v .5 si e % y ze : sE— mfr pom loye v ee B rye ne larfit ges in p Ya oung rticipa er nt 40 s in 20 1(k) the pa 20 rtic 16 ipa d nt at s aw ba ese re is m uc 45h mor years, e lik eqe ua lyl tto o hol the 42 d m .e 8% q euit diaie n o s a f 45 ye nd to hold ars in 201 high c 5onc bute nt dow ratn fr ions om in e 46 q uit yeie ars a s in 2 t ye01 ar4. - Rules, SourP ca ers tia c GI nd ipa Csn Ty are t p D guarant e es of cision eed Dinv a s, a tes a tnd mentt he cont P rac attsh o . f Least Resistance.” NBER Working Paper, no. 8655 (December). 7 p Fia grur ticeipa 450% 3, 401( nts in kt)he Pir la n C tweh nt ar ie as cte ea ris rnin tics, b g my o rP ela tn As han $ sets 80,000 , 201 6 to ................................ $100,000 had a med................................ ian account balance of ....................... $50,460, while 9 >$6ha 0,0lf of 00–$40 70,1 0( 0k 0) part23% icipa 8%nts in 24% the great da 22% taer base than he 23% $100,000 ld targe 24% t-at da y tear e fun 23% -end 2016 ds. Als 25% o known a 25% s lifecy 27% cle fund 27% s, these 29% funds >$40,000–$60,000 17% P 16% ercenta16% ge of Ac16% count Ba15% lance Inv19% ested in 17% Non-Tar15% get-date 12% Balanced 13% Funds 13% Participants in oth e 40 r s1( tak bl) e p va la luns e f u m nd asy hold equities thr 43.7ough a va 1r ,5 ie 8t 1y of options inc 4,05luding 4,887 equity fun $46 45 d 3, .s, c 5 295,o 4m 00p ,6a 9n 5y stock, and 20 in b 01 ala . nced funds, compared with 56 percent of recent hires in their forties, and 55 percent of recent hires in their the s re ta qnd uire fina ard dnc .to ia Mo lho d c re ris ld o is v ce o (r, mp o v EB e arn R the y I s ha to fisc v k o e b -cy ta oentrib ine ar p de ute a riod le dg to fro al th o m peinion y ir ea ac r- ctha e ond un t ts 2 the 010 by me the 12% totho y ire d e am o r-log e pn loy y d e us 2015) r;e d sp me e , csifie e ee ts dH trhe oule ld e psn ri rve eat gca a yrd l. sin ta 2017b g n d the ar.d no s otifi f the cation Grao mm f - sa Fi those g la ur ry e, p 31 c aont r, tic Erip xpo ibut ant su io s in p n b re te o la ha E ns q vio ui of r ti, fe ers I ollov ring nc Pr erc e loa era s f esed ns nta r, om ge tA o he m f e o ong thighe lihe giblr e 40 p 40 st la 1 1( n (p ks, a k )4e pa 7)r . 4c Pa rti e ss cnt ir pa e ta itc nts g a ipa e llo wi s of n th ctas B otuts ion, pa e tan rttw ic di w e ip ng it ehd a 4 n 2007 nt 01 rs w a (kw ) lo a it an ls h as , nd out loa 20 st n a 16 anding c t................................ ivity , loa and n be am lap nloy ces w er er.e 32 40 Wor 1(kke)r PRe la $ns 5 tir 0 e ,0 G m 0 e0 e 4ne 8n .5tr a Se tec ?ur 60s Cit hy a”n g (Fe es in A bruarcyc oun 13). t 1A B 2v a .7a la % ilnc abele s, 200 at ww 7– w 20 .e14 br5 i.o .” .6 % r Ig C/pd I Re f/se public arch P ations erspe 81 /t .8 c e% tst ivie m 22 ony , /t no. 133 5, a 48.p .1 d nd f EBRI Issue Because few plans fall into this category, these percentages may F be igheav ureily 6 influenced by a few outliers. 60s age group is assigned; date of hire, from which a tenure range is assigned; outstanding loan balance; funds in the P As riv sa ett e A Indus llo 200% ca trtyio in t n a he n d Unit Inv ede St sta m tee s, Ma nt Op arch 2012 tions . Washington, D3C 8.: 8 U.S. Department of Labor, Bureau of Labor e B cor nd ecp aor 20 usa16 et io old ns com e tro p pa s ar m re tic a dll b ipa wit us nt h ye ine s te a snd r ses -end t— o w ha 20 itv h a 07 e . la v For ra gre ie P re e txa a y rc c of e m cn oun p tinv ale gt e , e a b s ob t a fm out la Pa e nc rnt tite c h s, iop p re aa te nions ss t-sq e ua W t.s in t i trh te ou rs of the Eq d u40 ia ty ta 1( F b u k a n )s d e p s la ar n p e m aror 18% tic eip ca on ntcs in t entra he teir d ta w m eong ntie s C 31ambr 1idg 00% e 90, %MA: National Bureau o 54.9 f Economic Research. Available at www.nber.org/papers/w8655 >$70,000–$ 8 0 O ,0 f 0 w 0hich: ta 26% rget-date 23% funds are22% an option 22% 1,023% 81 22% 2,8524% 0,415 24% 18.0 20 $1 25 827% 9 F ,9 o0rm 3,1 1 50 5,26% 8 01 01 28% those ea>$ rni 6ng 0 40 ,00 m 0or –$e 8 0t,h 0a 00 n $1015% 0,000 ha 13% d a me14% dian acc13% ount ba12% lance of 17% $41,971 14% . Among 13% longer11% -tenured 12% participa 11% nts in are designed to offer a diversified portfolio that automatically rebalances to be more focused on income over L b Ae la g a Th c e ckh e o- ut Bl rail tp e io e yriod o NAc f ota e: t. sc ; Fc At unds a ond un no inc t re tim b lude q auire la e mnc ut ha d ual e s q t fo a unds ua ny srt a , le bank no arly ry np cts oe ub tllec a nd te litc s ivm e p to e te rus nts rp s te so , a na lif tha k e l ins at info t uranc mu hig rs ma h e t e sinc eparat r tion slud ala e tha r e ac y a clt o eno unt is ve stice p ls , e and r as nd hig o any na the po hl lly o ig led n hting idfinv e anti ll es o tfia the m ff, ent b li le im pro k,e p s lduc y o uc rta r te h prim fle nc as arily ce ting a o S f o d the civ iael rs influe Sific ecurit ati nc o ye n of bala Inv nceesd tm fun ent d s. This Options sec Atlion l focuses first on 11 the .0% investing pattern o 6.7f 40 % 1(k) plan partic 82 ipa .3% nts with respect to equity 7 sixties in 2016 (Figure 39). Concentrated target-date fund use ranged from 54 percent of recent hires in their twenties 400% 401(k)Lo P an a r as ti a cp ip erc a en nta ts ge o Re f th p er re em sa e inn ing t a 40 R 1(k a)n pg lan e ac o A cf ge ou J n G o t b rou b alp an Te cenures a cont mong ribut pa ion rticripa aten s. This ts in the pa irp e thir r etxa ies, fo mine rt s iets, o he rre fif lattions ies (hip Figu breet w 48 ee ). n a In a ccd oun dition, t bala pn ar cte ic s a ipa nnt d s w parit tic h fi ipa vnt e s’ or afe ge w, etre y nur eae rs o , and f B U. rie S. f, Dno. epa42 rtm 6 (Se cent of pte Lm ab bor er, ). EA mvp aloy ilab ele e B ae t ne ww fitw s Se .ici.or cur git /pd y Af/ dp m eini r2s 2t-r05 ation. .pdf 2 a01 nd 4. Private Pension Plan Bulletin, Abstract of participant’s investment p 15 or .7% tfolios; and asset values attributed to those funds. An account balance for each participant 21 Figure 4, EBRI/I1.1% CI 401(k) Database ReT parre gsent et-da s a te Wide No C nr -oss targ 3 e 2 Se t .4 -d ca tion o te f tC he om 40 pa1( nyk ) Universe ................................ Combination of ... 11 Statistics. AA inv v 0 la les ila ted ble in t he ats ec wurit ww y indic .bls at.g ed.ov/ncs/ebs/benefits/2012/ 11e 0,b 7b 94 l0050.pdf 27,148,308 2,045,846,554,199 t ha he d old m >or $e 8re 0 40 ,t 0h 01( a 0n 80 –k $) 9 0 p, a 0 pr 0e t0ic rcip en at nt 23% of g 17% rtoup heirs. A a 23% cctoun yea t rb 21% -e and lanc 20 es in 16 21% , v F 6 ei3 s g tu p ere e d 23% r c in e 1 ent 3q of uit21% ie 40 s a 1(tk )y e p23% a la rn -ea nd sse 20 23% ts 16 w, ec re om he 26% pld are bd y w p 25% a itrh le ticipa ss n 28% tthsa in n half >$80,000–$100,000 14% 12% 72.4 12% 11% 11% 14% 12% 11% 10% 10% 10% ( nu H t tw he sold e Be o mb e ir c e c U.S o si e a n, mp r, us xt .Sa b ie e J ee o s w ting o r e int a f n h, th it tra Committe fo h $2 e as ns rc nd ee fce s 0,00 Ja ha .rre Fi c ng k d rs e 0 t e V to t, osa n o e n in omp Tax $4 D r ts e he 0,00 ha iri rahe tion cr ca e ro i. l d 0 in rs 20 e 2006) w ss ith s e 02 s e aa c rc . EB ltions a .“ h rC R y sa I. ug in 20 n 40 , cgoemp s1( 16 tsk a , th ) ring tA a ht c e c hig au m vm e e he ra d ulia rg a e e n a tion aarne ccc s G co rs ount un e te t ne n b b d r aa a la to tla e nc n cSignif e c os e ntri a w cb a ro ic ute s a s$ s n 68 td hi iffe Ig ,8 nhe c54 re om rnt . pe For ey rc for ea e long r nta -Feut nd ge u e rr sc -e ro to ef s nur s sa -la ery d ; The invest tim me e. n t options that a plan offers can significantly affect how participants allocate their 401(k) assets. Figure 22 Group 90% Zero 1–10% 76.6>10–20% >20–30% >30–40% >40–50% >50–60% >60–70% >70–80% >80–90% >90–100% Fi fun gur ds. The e 32, A asss set A et allo lloc ca attion D ion of p istra ibu rtic tion o ipantf 401 s without (k) P a er qtuit icipa y fun nt A dc s is coun explored t Balan cne e xt to , B ba ela ca nc us ee d 40 Fu a 1( nds, k) p ba yr tA ic gip ea .................. nts holding no 33 Va hold nD ing erhe mi, orJa e t cha k. n 9 201 00. “ pP ee The rc rc ee n 2n 7tI. m t 2of ap ge t ahe c t o ir fof a ac A ctc ut io ve o unt m 40 a b 1 tic a (8 k l a )E n nr p cle oll as in nm pe atnt ra tr i c g in 401 ie pta -n dtas( t,k e ) bfun y P la yd e ns s t a ron s o 1 8o 4 .1Fu f6 t e p tur n eu re c re eRe ,nt 2 tof 0 ir1 e6 m ree ce nt nt A ly c chir um ed ul a ptaion rtic s: ip A ant s 80% Source: Tabulations from EBRI/ICI Part 26ic .9ipant a -Directed Retirement Plan Data Collection Project. t sa enur larye. or w30 ith mo 0.4% re 1 0t0 ha C o on 30 m r 2 6 fpe .5 aw ne y y rears of te 1 fnur 0 u1 n d P te o e s r* w 5 c a e 0 e n s 0 rte ag le e o ss f b A lik a clc a 5 e o n 0 u ly c 1 n e t t td B o o a flus 1 a u, n n 0 c e d 0 e s 0 tIn he ve sloa ted sn p ti1 n o, 60 c T 0k r a 0 so ra 1 gv s e is tto -D ion 5 at,e 0 t 0 Fha u 0nd n o s cotm he pa r np >5 ya s r,t 0 tic o 0cip 0k a ant nds. /or 20 ww 11 w .e For brm i.or 55 g/pd 00 A f/b nnu riefs al Re pdf/ pE or Bt RI s _ (Ve IB_4 rsi26 on .Se 1.1) pt. 16 W.a Csh ons ingt ist- on, Ks.pd DCf: U.S. Department of Labor, Employee Benefits Security About the EBRI /I C OI f w Dh ait ca hb : ta as rg ee ................................ t-date funds are an option................................ 75,719 2 ................................ 0,284,235 1,435................................ ,858,322,553 . 8 is Con the gr e su ss m io na of l B the udg pae rt ti c Offi ipac net.’s a 20ss 17 e. ts in a CBO’s 201 ll fund 7 Long s. Pla-n b Tera m la nc Proje es a ctrio e ns cons for tr uc Sotceia dl Se as t che urit su y: m Supp of ale ll p me ant rtia cl D ipaa ntta b alances >$ 350% 9>$ 0,0 10 00 0– ,0 $0 10 00,000 22% 14% 22% 10% 21% 10% 20% 9% 22% 9% 11% 20% 36.6 10% 23% 9% 22% 40s 7% 25% 8% 25% 7%27% a Dis t s the he e t cy re tional ir t e ri fo a fif rb re -te ie u ,s nd t s or na oio ne p 20 n s si w ho 07 of x ots tuld . ie P Old c s, w lans a en xp e le rhil e , 40 a ce d P t 1( the a 1 to 3 rt k fal ) p icipa ra p e sta re io c r e t cic o nt o nt f nc ipa aof slus c,nt c 40 o a ion s w un nd 1( s t e . k b As r) For a e lp a s a la nc e elit n x tea s ta le mp to ss b le y P e sle a tss s w ,la ne lan Siz ry lik e w e to rly e ly ri he fo tso e e rme ld h w ab ith v d ye p p ssu la a ala ns rc try h hig ic w ipa . o Huld n o h co w ts e t in t e vnc nd er,he e to ta nt ir x rp a tull cw to ions e dde nt o w c ie in e on s or ntrib the q uit t ution a hir ie ve ts a ra ie li s gt mit e y e sa r- Re p pr ae rtt sent iric eipa es? s t nt ” $he 4 s in I0 n ,0 v de 0 is tst 0 he trm ibut ire si nt io x tC n o ie os e m f p paa la rny nin ns I , gns p m a tiror ttu ic e tipa e t h Pn a et n $1 rs, a spend 00 ctiv ,000 a ess 8, no. e, ts the by 3, a m four ed nd ia cn a om EBc RI b cin ount Ia stsu io b ns e aB la of rie nc inv fe , no. w est as m 25 $ e1 (No 37 nt 5,7 offe v 18 e rings. m . ber) The . Avfi ar ila stb le at 20s 89.1% 40 1.1 4(k %) Pla0 n .9 A %ccoun 0.t 6B %alanc0 e .3 s% Increa 0s .2e % With Pa 0.2% rticipan 0.t 1% Age an 0 2d .12 . 3% Tenure 0.1% 6.9% stock and/or only equity as only eq 23u .8ity only equity target-date funds,* and/or e Sim quit ula y tfun ion S ds m tudy B ay hold ased e q on uitP ie la s in t n Dehe sig for n M m od of ific co atm ions pan of y st Loc arg ke or 28% P la thr n Sp oug onsor h bals.” a 50 ns cE eB dRI fun Isdsu s. Fina e Brie llfy, , no. the 21 34 .8ov1 er(a All inv pril). estment 8 in t 44 heir sixties. In addit Aion, ge Gra ou tp year-end 20 >016 –50 , 58 per cp N ee nu trm cebF nt eir g of ou f rp te he l>a 54 n 0 a – 3 p 9 ca 0 c rt ount pieci rcp ea nb tna ts lances of >r 9e 0 c pe ent rcely nt hired participants in their Te Fi U.g S. n ur p D ee e 8 5, rp c 0% e a4 nt rt 0m 1 of e (k) nt p a P of rar tic L ticip ip ab aor nt an , s w B tur s R ite h a epres au o ccoun f L ent a atb or ba Rang la StnactM e ist s of e e d ic o is. 20 a f Ag n le T ss e e 13 n t sha u ................................ . re N n $10, :a 7t ion Yea a 00 rs l C 0 h om ap de loa nsa ns t................................ ion S outst uravnding ey: E. m ployee ........................ Benefits in the 12 AdminiN sottr e 15 a : t T 0% ion (Se he tenurep vta erm iabb lee P ir sl) an g . eA s ne vra aila lly y bele ar sa w t o w rkw inw g a .d t col.g urreov nt e/s P m P e p it art rlo c ey e s/ ie c nr itd pa ,a a e gn nt e fa d s o ult th f us / fil ma eys/ o Pe v ee b rrcsa se ta n/r tte ae g yse e e a o ra fs r o cfhe par rs/ tiA cis sset pt aa tio ts is n t inic th s/ e r4e 0t 1ir (ke ) m plae nn . t- a a in t ( Oc c nd Ac c Po he la tcno ob un o n > un -p $ nd t e s1 la r p b t 0 ) ie a n. s . b 0c la c ,a W ific 0 rimi la nc P 0a la 0 nc e sh – info na n size ,$ e ingt b 2 stion ut 0 rma a 0r ,on, w e 0is rule 0 tion o ne 0 uld eD tst s C o ,o 22% it : m f n w eu lC hic a l lo np ong t us a eh n a d no id a r p a e im 20% ro s t thing loa ss vto io he in sion na e b a su ns al B b s la o m 19% ure is nc ut udg of a e c v tha so a e .a ns il tc Th t a tOffi is ib e 18% v us le te mp e , c ntl fo p e un lo a .r yy r p A tte p he ic a v e aid 19% a ip s rt il ma o a ic loa af nt ip bjorit a le n s in a lltin b inc aa y 18% tg l ta o o w he w nc f me w o the e p w rk sla ra .c e a p n a rng b 19% re s la o.g . ns e S nd, no simi ov a in t tt inc la /s a the a s su rl 19% iyn ly ud st ,the s e c the a em h, m d /f b p in d a e le ile g oe 23% ne a gs ( nre s not inc fit ? yfil g s o lud a e f o t= the e f ne ing 1 th 22% a15 v c e e e e v t ig 401( rirt ss h aht - g ua a cer ong a k ily ll 25% a s )yc s p c e a ro lte ll a un ss n, of - t 20 16.3 e (Fi nd gur ? 20 e16 5, low A 70 cm om %ae p jr o a r p rit e ad ne y of ne w l)it . h ye Par w ta ic o ripa -e r r nd nec ts in 401 20 en 07 t : h19 ires (k ) p e in prla cv e ns es nt r ted e of pr40 e tsent h 1( eir 4 k) ap la w 0n p ide 1(k ar) a ratnge icsip sa ets of nts in t j in ob ba te he nur lan ir e si c xt ed expe ie f s ha u rie nd nc ds m e , i s. I o nrc en 20 lu thd ain n 16 g, target- FigD ur iset r33 ibu , tA ion o sset A f Pllo la ba ns cla a, t nion D c Pe ad r tfic u isip ntd ra ibu snts, a tion o nd inv f 401 A es ssets tm( ek n) tb P ya P r1tla 6ic .0n Size ipa invnt es A tm ce coun nt t Bala inn vc ee s ttm o eB na t lanc 3n e 2o .1d n -Fu tarnds, get-db ay te Te banur lanc ee ............. d funds 34 8 www.ici.org/pdf/per08-03.pdf and www.ebri.org/pdf/briefspdf/1102ib.pdf c The a 30s teg 20 or16 y8 is 7 E .B 4 the % RI /b Ia Cse I2 .40 5g % 1 roup (20s k) , dw a 1t.hic 7 a% bh cons ase con 1 is.tt 1 a s of % ins6 .inf p 7% laons r 0m . 5 ta % ha tion t offe on 0 r 11 .ne 4 c% 0,79 it6 he .7% 4 r c40 o 0m .1 3% ( pka)n 40 p ysl a st ns o 0c . c2 w k% it nor 8 h $ 6.6 G 2.0 %IC 0 s or .t2 r 2% il 3.lion in a 0 other0 > st .s2 2sets 0 a % b Yle e a- a rs v nd alu 5.e 6 % 300% 15.1 21% 21% 13.7 14.6 in equities across all 401(k) plan participants is presented. H A tw v old e ant ila eie n, b Sle s w oSa u ra ce tr e a :rw e T h, a w b inv Ja u w la.e e c tio k st b n s r Va ei.or d fr nD oin b m g A E /pd eB v ra R h e la If/ e /ra IC nc i, b I g P rL e a ie e uis rd tfs i c 4 fun i p p0 A a d1 n lons f/ d t(k -D s, c Ei) B ro, eR p co tI le a a m _ dnd n I p R B e a a _0 tSt r ic re ec 4 m e do -v e 20 w n e u tn B it n P 1h 54 lta0 n b _No a D a ss al ta . a p34 n e 20 Cc r o1_ c le l17 ee c ,nt A ta ib out . n y in 201 “ o P40 a r-oE g je1( n e cr t .k l.p 2, 42 a)n d 1P d 7fla . 2 t n As e pn er ucre s ee nt ,t 2 A in 200 0 lloc 16 atio 9, 24 n, A c pc eount rcent B in 200 alance6, s, Relationship As In s ve es t tof m A e ln Ag lto O c p e a ti ot a n in o s d n Of fTenu D eri es dt bry ri b e Pl u atno ti o 40 n 1( ofk) R e Pc lan en tA ly c p lc aH n ou sire nd t Ba 40la 1(nces k p)a rP tica i p 21% r atnitc sipant A Pec rcc eo ntu agn et o fB aa ssla etn s ce c b c the a o ate ns la s nc g tra m oe rie ain llw sp the o d la uld e N n sa ot s cb ) trib e: e .il 1 nd ity S C 9e .1 o om d me to o .ponent f b hig pela sh p ns m ull -in a yw e c not d o ithou me d add ow ind tt o n this 100 if ivia perc d info ua laent rg ls rma e bec to nu ation 2s us 8a mb .4e v of ea e roundi in r r eo the c f lng. p as ap s rticip la ifin. ed a Sa nt ese sha H re o vtire ing lded n a . aloa ndn Vp aro nD ve isrion hei 1if 2001a 2.0any pfo articip r a co amp 30 nt in lete the d ip sc la us n sha ion s Unit bulle etd > ins $St 2/2 0a 0t 01 ,e 0s, M 01pe 0 a ns rc ionp h 201 lanbul 3. 18% W le atsh in.pd ingt 15% fon, DC 13% : U.S. De 13% partment 13% of Lab12% or, Burea 13% u of Lab 12% or Statis 14% tics. Ava14% ilable at 16% r 2017 epre-sent 201 8/ the re p tor ota ts/ l nu 53m 24 b5 e-rsu of p 21% p ele mm ploy enteaelda s atta .xl the sx sponso ring firm. Within the year-end 2016 EBRI/ICI database, it is The ratio of participant account balance to salary tends to be positively correlated with age and tenure. Participants in 4 80 3 p pe er rA c c 7e e 0 gd nt nt % ea G te of of ro u t tfu he he pn irp d a a sr c .t ciFor c oun ipa 30s e tn xa t bs in t a m lapnle c he e , s inv a d t a yte a ea b srt a -e se ed 9nd . 0in e ha %20 dq 16 fiv uit , eie 71 or s a p fe te w y rc ee e arn r - y te e 7of nd .a 8r % r s of e 20 ce 16 nt te, lnu yc om hir re e p ad a nd rp ea d 5r 8 tw p ic 3e .it 2 ip r % h 30 caent nts he p ha erd ld c e m nt bo a 2 rla 5of e .5nc t40 ha ed 1( n 30 ye fun k) p dla s in n ars Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project.30s 7.8 >10–20 Years fun 40s ds. For 84 ty .6 % percen 3t .3 of % partic 2ipa .3% nts in t1 he .6 % 2016 EB 0R .8I% /IC FIi g 40 ur1( 0e .6 k2 % ) 6 databa 0se .4% were in t 0.2 he %se 20% plans 0.2, % which g 0e .2 ne %rally off 5.e 7r% 27.1 million p Equ aitryt,ic bipa ondnt , m s ( onFi eyg , ur and e/ o1) r b. aA las in t nced fhe un d40 s 1(k) unive7 rse 1.2% at large, most 3of 9.7t % he plans in the d3a 2t.a 9% base are small: Fi o an f gEB ur outs R e I/ 6, ta ICI nd 40 ing find 10 1(k) lo ing a P n sar b aticip a nd la nc othe an e. tr T s R his res epres e ma arc yh un ent a on 6d .5e th rs Rang et a rte ela the tions e >3 o nu f J hi 0m o p Yb e b b e a Te er rs tw o n f e u e pres n lan co s ................................ ntrib offerin ution g loa ran te s s( o ar nd p asrticip a ................................ larya . nts For 42% ea lin gib ana le ly fosr isloa o ............ f ns 401( ) k) 12 A and bout Loa Ch n aA Pl nge ca tiv ns in A s ity in 201 ccoun 5.” t BIa Cla I 5 .n Re 9 19c .9e sea s ................................ rch Perspective 23, no. ................................ 6, and EBRI Issu 6.e 0 B ................................ rief, no. 436 (August) ...................... . Available at 12 a Averag nd about e60 L 7 % oa pen rcBa entlanc 5 a .2 moe ng s that age group in 1998 (Fig 35u .9re 40). At year-end 2016, among recently hi23 red participants in Salary Range 19% Tenure (years) 4.9 19% www.bls.gov/n to c s/ C eo bm s/b pea ne ny fit s/ S20 to13 ck/e in bb 4 l00 01 52 (k .p ) dP f l ans W 4i .2th Company Stock, by Participant Age 50s 250% 20s 9 40s 0.8% 75.1 10 % .3% 9.4%17.67.3% 2.5% 82.3% 3.8% 3.5 A poss ge ible and ta $ o c 3c lin 0o ,0 unt k0 0 indiv balidu ancaels a a re cr p oss osi p tiv lae nly s a c ao crro re ss la tae d m a am joo rit ng y of patrhe tic ipa recnt ors dc kov eee preerd s. bThi y the s im 2p 0r16 ov e ds t ata he ba ide se.nt ifi Exa cam tion o ination o f activ f e 9 Fi 22gure 34, Asset Allocation Distribution of 401(k) Participant Account Balance 20 tso Company Stock 2 .in 4 6 01(k) Plans With t H he old ir efif n, tie Sa s a rand h, a sind xtie Ja s— ckh V aa vn ing Deh rhe adi. m 20 or03 e . tim “40 e 1( to ka ) cP cla um n A ula sste et aA sllo sets ca— tion, tende Acd c ou to nt ha B va el ahighe nces, a r rnd atios, w Loan Ac hilet iv those ity in 2 in t 0he 02ir .” of partteic nur ipaent t he (s in Fiir g ur 40 the e1 ( 6) ir k ). si p Th xltaie e n a s a mc etcd oun yia en te ar ts. B -enur nd ala e 20 n a07 c t e 2t .d . 1he A fun c low ud rs m re ern sh ta d eam er e p up loy he45 ld er no p w ea re s ce qse nt uit v ie of en s. ty he ea a r 1s c .4 cin 20 ount16 ba , la dn ow cen fr s of om re ceeight ntly y hi eraerd s in Perce n tO afg w e h o ic f h p: lta an rgset-date funds are an option 47.9% 31.4 9% .7 24.4% b p Va Ass 50s a e Th Tab rticip c nD ae e us t All e c ula r e ro a he nts s t 8 soc ion o s 3 i, me -.’ 18% s 5 Ja a c s e % tio o c o c p ntrib tional k f la n . 7th .n 020 to s e 3 ution . 18% ma 1 S Equ 6 a4. “ urve % na y ly a it ha W c s y ytiv is F hy v o ef f 2 iun ty o .o Con D 6 r ff ds % oe d this e urin re s s Re ume dpg ub a the t r p ir 1 liFi l.e c a 9 a m na n % btion e e loa nc a nt 18% re n, fo ma s Re un r b0 e rk a ut v .d d 9 e e ine % no t tha a 18% l o tha f ss p t 2 a c 000 rticip Va o t ns 55 0 r.y o 7 to : p a li % d nt e Re 2002, a rc ting ha su ent d lt s fr the o t s 0a e f .k 5 e tr o e % multi H a n m d oo it ld E ut ion B p eln RI a ea 0 a l loa ’a .s 20 n 3 IR cd % cn. A oV 0un 14 .a a 5 It nD sts s iRe s e e a ts li 0 rhe ct k . ro ir 3 e in e % l18% i s ym 2016 s 2004b tha e an ma tt r this Se .e 0 jority s .For 3 c ult ur % omis eis t d o umm y f fro sthe ion m 5 a .ris 4 y% 57 equit peyr c 6 fun e 0nt %d s, b of the ond p la fun ns ha ds, m veone 25 yo fun r fed ws, a er p nd artbic aipa lanc nt es, a d fu nnds d 26a s inv perce ent stm ha en vt e op 26t ions to 1. 00 Anot par he ticripa 29 11nt .2ps ( erc Fi eg nur t of e 2) pa . rItn icipants Asset>2 A 0 ll –o 3c 0 a Yt eia o rs n Distribution of 401(k) Participant 23.5 t w U. he w S. ir w D .ic t $w e 2i.or 0 p e30s ,a nt 0r 0 g tie 0 m /pd – s, $ e4 nt tf/ 0 a, p r 0 of g e 0e r 023 L t-ad b -a 8 06 or 50s t 9e ., .p 3 18% fu E % dm nds f p aloy nd ae cw 17% c eount w Bw e.e ne e 7b d 0 fit r . 13% 9 i.or 1 for s Se 0 % .3 g % 8/pd c 5ur pf/ it 19% ey r bc rA e ie d nfs m t 9p of ini .4 d 20% % f/ s the tE rB air 6 t RI ion. .4 b_ % a 19% IlB a2 nc _4 01 e 36 5b. d 2 _K .fun 6 24% % P -r upd d iv a ass taete e 22% P 8 t.3A 3 s, or e.ns 3% ug17.p ion P 4923% p lae dn B rf6 c e .5 ull n % t22% eof tin, A theb irst 20% arcaccount t of Copeland, Craig. 2011. “Target-Date Fund Use in 401(k) Plans and the Persistence of Their Use, 2007–2009.” EBRI 100% Percentage of recently hired partic 0– ip 2a Y n eta srs in plans 0 Age Group 0–2 >2–5 >5–10 >10–20 >20–30 >30 Relationship of 3.8EBRI/ICI 401(k) Database Plans to the Universe of All 401(k) Plans 12 p A the a m r t ong a icg ipa e pc nt C a om om rs tE ic q a pp u ipa nd osit ia tyn ,n r y b ion o e t o s w St su ndo l,t it c m f a ek h o d o, n cin t b ec u yy ot , 17% unt s a P he tn a a dr ndi /t r o b ie rc a c ipa b ng la la alnc a snt 40 n si c e fi e s fin A 1 c d( g a k fe t u)ion o n d ................................ lo ds sa ,t 9ns ha .f 1 1.2 ta 54 t tm he pill e ie ron c nd ent pof a of rt20 icp ................................ ipa 16 art, n icttipa he ac nt c aou vs w ent rait s gh a e tha unpa ctc ount 1 w 4.e 7................................ id reb b m aa la ult la nnc c iple ee w s of a ac s cle $7 ount ss ,90 ts ow ha 7.......... ,n ned b 36 y t Iw nv ee nt stie m s ha ent 50 % d C om thep low anye st In st rait tu iots ( e P Fi eg rspe ure c17 tiv)e. 9, no. In add 5, a ition, nd 5% fo FE irg B a u RI ny re I ss g 3iv ue en a Brg ieef , ano. nd t26 enur 1 (Se e cp otm em bina ber t) ion, . Avta he ila b ra le tio atof account ro 20 p s sta ma ro ll15 ti o vll s v id , tics e a e a rs nd rs s 40 fro o U.S to n 20 1( m c the .1 o k Go e 4. ntrib )m s p v in p a eloy r rnme g ution tle ic 2e .4 ip r ind - nt a sap nt ic v o Ac tiv id s a ns u c ity o o a tre l un y in o d ew ta a 2016, rning re b-tire il eity nd m the s Offic 20 e ee nt m 16 Ut e p re . la k 1997 s us A ns ulte si .a g nd d fo nif in un Youn i F ca d a n i n g tha o tg u vsu r2017. e t e ra mo b 5 set ll 1 re inc of th rea t aha n se95 t ob f p a3. e la rc 1 n e c pnt e ed rc o fun e f nt 401( d in cthe k a)t ep g a la or vns ey ra tha is g ein t401( v oe ffst ek r e)d loa p in la nn st a ha rgde ta-t 60s 200% 84.2% 3.3% 2.3% 7.9 1.9% 1.0% 0.7% 0.6% 7.1 0.3% 0.3% 0.3% 60s 5.2% Fi The guryee a 7, r-D end om20 est16 ic S EtB oc RI k/I aC nId 40 Bond 1(k) Ma dart 1k a 4e .b 6ta se Inde shxe ow s s ................................ that, on av 6.e 3rage, 44 ................................ percent of participant ............................... account 12.1 balances we r14 e w Pre oje re cin p tion M lans od tha el® t .” offe Jour r 60s Gn IC al s of and Re ot tirhe em r est nt a b 1, no. le 9.- 6v %alue 4 ( A fun prd il) s a : 95 s a –n in 115 7. .v 3% e stme30s nt option, in8 a 5.d 1d %ition to th 5.3 e base options. contrast, 40s less than 2 pe8 rc 6e .9 n% A t c of co the un ptla B ns a6 lha 4 a.n 8 v% c e e m tor oe E tq ha un i1 t2,50 y 1 .4 F% u 0 p nd ar st,ic b ipa y n P t3 a s. How .r 2t % icip ea ve nrt, A pa gre ticipants a 7.4nd % assets are >$ 19 40 98 ,0019 0–99 16% $60,20 00 b00 0 2001 20% 2002 16% 23% 2003 2004 21% 2005 26% 2006 16% 2007 28% 2008 27% 2009 2010 30% 2011 a,b 26% 2012 2013 28% 2014 27% 2015 2016 29% U. 20S. 12D For epa m r t55 me0nt 0 A of nnu Laa bl Re or, B pur ore ts a u o (Vef L rsia on bor 1. St 2)a . tW istaic sh s. 20 ingt14 on, . N Da Ct: ion U.a S. l C D oe m pp ae rtns ma et nt ion S of L ur ab ve or y, : E Em mp ploy loye ee e B Be ene nefit fits Se s in t cur hei ty balances overall. The pattern of target-date and non-target-date ba -2 la .0nced fund use varied with participant age. Issue B 5r0ie %f, no. 361 (Augus 12.8 t). Available at www4.e .7bri.org/pdf/EBRI_IB_08-2011_No361_TDFs.pdf and GICs and/or other stable value funds 26.5% 29% 29.3% 27.3% off3e .9ring compan -4y .2 stock as an investment option, 2016 a c $1 si leom cngle ac0,00 sot p un o a ne indiv r t 0 w eb da p la la e w idua rnc n it e h $ p e in t a .ls rticip Th 7,98 . 20s he Th isir is a 2 s nt tt a w in p tis re w oc tnt tic ith he e ie d s a y s or $ ur ho n e 5,a e 1 o uld r 3 uts - a t5 e hir llow nd b ta e tie nd int s E 20 s ( ing e 15 B $ rp Fi 1 RI lo g r 2d e u , a 4 a te a rn. 6 te nd a 7 d b 11 w a IC ith se ). I Si t( co $ Fi a m 1 u g b 8 ila tion, ur e ,5g r 7 e ly in t 4 49 , a 5.60 s o 0) it . c The p onsoli ma erc ye m no nt dea t dt of r ia ee n loa p a prc ae c rso te iunt n b cnt -i 4 >5 p .4a ta –he b nt la 1a 0s w n l to a Y cnc e e ta a it rs out e lh a 401( s fo 3.8s ctca roun k nding indiv ) as t sb idu e a ts w la a a o n s ls w c $ e ne a4,2 s cd rg o r 79 b ss eya t ae t r Distribution of 401(k) Part 4icipa 01(k) nt Pl sa ’ n Ba C lanc hare ad cte Fu 5r .5ind sti c Al slo , b cy a t Pl ioa ns n A bs ys Ag ets e, 2016 w ba w la w n.ic cei.or to g sa /pd larf/ yp v ea rr 09 ies so -05 All.p mdefw aha nd t w ww ith sa w.eb la ri.or r8y.. 7% g Fo /pd r e f/ xa brm iep fs le p, da f/m 09 ong 03 7.0% ib. pa prd tifc ipa nts in the 8ir 44 .9 . 3t% wenties, the ratio tends to All 8 d 50s 5 a.t5 e% funds. A 2.9% t 8 y4 e.a 4r% -2 e.nd 0% L20 oa 16 n, s 1 38 .F 5 6% r 0 p 1o . .6e 1$18, m % rce 4 nt 942 0 0 .1 of 7 2( % .5k the ) P a 1 lc a 1c0 .n ou 8.% s 5% nt T 15% e bn ala d an ,e 0 b 4c ..d 2e 4% s of to 4. 4B r % ee ce 0S nt .2m % ly a hir lled 0p .2 a% rticipa 8.2n % t0s w .2% ere inv5 e.st 8% ed Age and 10 -Te 10 0 nure of 401(k) Plan P2a .5rticipants 3.4 9% 4.3 12 a Hlloc olda etn, edSa to raeh, quit Jay c kfu Va nds nD(e Fi rh ge ur i, eL 21 uis) , Aw lons hic a o, h is o and ne St w ev ae yn B to a hold ss. 20 eq17 uit bie . s. How “What e Dv $1 oe e8, rs C , 43 indiv 3onsi idua sten l a t P sset a articip llo acta ion in tions varied A conc ltere nn at tr iv ae te lyd, in la 16 pregre 0c .9 epnt la ns of . pFor art ic eip xa am ntps w le 3.7, e 65 re p in p ercla en ns t of tha pta r offe ticip r22% acnt om s a pa re ny in p stoc lan k s w butit no h m $18, st or ae b 127 le th -a va n 2,500 lue prod puc arttic s, w ipahil nte s, ta he nd 23 32 >$60,000–$80,000 18% 23% Pe 20% rcenta24% ge of part 24% i$ ci 1p 7,a 68 n6ts24% , 2016 26% 23% 24% 23% 25% United Sta $ 40 2 te % 0s, M ,00 0 1 a 9 .2 O rc f h 201 w hich:4 ta . rW ge 27% a t-sh datingt e funon, ds D arC e : an U. oS. ptioD nepartm 1e 8.nt 9% of Labo$17, r, B 630 ur2 e0a .3 u o % f Labor Statistic 1s. A 8.7%vailable at Admini Not 150% st er : a Av tion (Ja erage and n ua med riy a) n 2. .4 40 A 1v (ka ) ila loab nle am a ot u nw ts w are w c.d alcol.g ulateov d a/s moit ne gs/ pad rtie cfa ipault nts/f wiith le 4 s/ 01 e(k 3b .3 ) sa loa/nrse a sea t 17 y.e 7a rc r-he end. rs/statistic9s/retirement- 14% $16,836 the Figur At At ind y y ee e i35 v a aid r r- -, e e uMa nd nd al. n Th 2016, 2016, Ty o e tRe a limp P c l2 59 a e nnt a p c A p ely t rc e so rc s e H e fnt e tir a snt c e o c d f o o f un 40 the no t 1( n c p k o -a ta ) ns rticip P rg ola li ed n P ta-ants d tion a atr e in t iv c b the a ipa arie lan nc d dt a s H e w ta dit b m h old autu the se B w a a p l la e a fu re rticip nc nd m e d is a a s s Fu nt’ s ing 14% ends s ts a a w g b ................................ e eirt ra eh n a d d s a s te um te n ure eentry d w to,ith b we $16, e the re inv 732 y c e......................... o urre sun ted g nt e in re tha e mp quiti n loy 20, ee sr. (o s r e 36 e 2015 Form 5500 a 60s 78.9% 55.2% 10.9% 5.1% 13.2 7.7% y Fi d tha e a ga tur a n $ r- e p e r nd 10 8, ov0,00 ide 20 Per 16 rcs t 0 w e, nt o ce o p C r m e rho p a in t v a nge ide rehe d a in Tot w ir m it fif h $ or tie e a4,35 s or l Re acc u t9 s ur r ixt a in n I te ie t he nde s. The est y im xe ea a s rtp ................................ -ee osit nd of iv a 20 v ee 15 cror a gd re e a 1la ta 2a .c 2tb io ca ount n b se.e The t................................ b w ae la e rn n a acte io s p ge of e atrnd he indiv a loa 40s ccidua ount n out ................................ l. b s ta ala nding nce is t o expe the cted .. 14 inc VanD reaese r 4he 0% sli, ight Jacly k , w ait nd h s Carla aig ry C for op 1e low 0la .9 nd. -to -20 mod 08e . r“aThe te 10 .8sa Im lap rya c gtr oup of Ps ( PAFi on gur Re e t 18 ire )m . H eow nt Sa eve ving r, a 1s for t 1. 2high 40 s1 a( la kr)y P le arvte icls ipa , tn he ts.” ratEio BRI The analysin is inc tar ludes get- 30s d the at27. e fun 1 millio ds. $15, n $ part 1246 2,ic 09 ipant 0 P se in rce the $ n 2 t ya 5 ear-end ,g 1e 4 7 of A 201 2cco .06 EB $ u4 nR t 5 B ,I/4 IC a 4l4 Ia 401 nce (k ) In dat v $e 6 abas st 8,e 4d 9 e. 5 in Company Stock 2.3 Source: Tabulations fro 0.6m EBRI/IPe CI Parti rce cin pa ta ntg -De irec ot1f ed . 2e R liet giirem ble en p t a Pla rtn ic Diat pa aC n ol ts lec , tib on y Proj pa 7ec .rt 7 t. icipant age, 2016 7.6 45 widely across participant 6s. F .7 or example Pe, r 6c .55 e7 nt ap ge er ocfe Ant cc o of unp t6 B .a 7a rltain cc ipa e Inn vtes he sted ld in Nno on-T eaq rg uit et-y D a fun te Bd as, w lancehil d Fe u n16 ds percent of 40 C r Ie ndivi om m 1(ap kin > d ) a$ u ing rP 8 ing ala 0l 401( ,ns 0 15 E 0 rq e 0 G u c – p ie $ te k e y1 n ne ,) r 0 t c bp ly 0 o e r,a n a nt 0hi d rt 0t ,e 0 irof m c ? eipa od C n p h ep a n y 17% a a r,tn t r s’ a itg c nic ipa e d aip /s in A ss ora n e b nt tt 21% a s w la s in 2 ac n lloc c c eoun e 13% rd e a 0 ftin p u ion t16 17% n B d s a la w t ,la o it ns nc b h si atela h 22% s, 201 m a nc til off e ar d e 0 a fun r g –21% e20 ed dg 15 s v b rot oup .” ah com rI ie s in 199 20% Cd I Re wpide a se ny 8 a ly a 23% r s c atlh P r so illus oc ou ke nd raspe n 20% a d tr n a c a st ttiv e a vs t b e ele r23 a h 21% -g a v, e t a no. lue a of ss 27 e p 9, a t 20% r od a plloc nd e urc cta E es in tnt B ion 22% R a I ttI o ssue t D he eloit se tsa e m Consu e plaln ting s ac LcLoun P. 20 t fo 17a r 68 . D p ee fin rce ed nt C of ont arll p ibula tion B n asseenc ts. B hme acra kus ing e Sur mos ve t y of : 20 the 17 p la Ed ns it ion ha. ve N e aw sm Yor all nu k: Dm eloit bert e of Y w b Th w Inve ull e e w For e a re w e rs la - t.b tm o E ins r ald nd g ls e c e e /2 .g o nt sr 20 mp t 50 01 ov A th inc Comp % g 16 a /n 2pe le en re t c e Sn (69. a s/ i ns n a s tim e e ny a t h ionp b s p Th o e s/ sh in u In e s sb ot e y a s a le a tit n ri vw ne nbul d e e of ute s e s ra )fit ro 40 e g,s/ f le e no Qua the 1( t20 a in.pd t c kc 14 inc ) rte p o P e un /e lud T rc f rl a o r y b t e tt a b e b ic nta S P ld l00 a up e ip P la r lin a g c a p nc n 55 e e nt le s thi n o e t.p s’ m a f s o g e d e A c e a nta li fT c c na g o o urre c fib tount a ry ly A le l s P cd Dat is a c 401( r. o a t B u imo ca a n ip )tla k . a ng B )n n All a tp c s la o a o en rt ld c sc a ic e ................................ e tion r ip I n p a va nt e to rticip s T st o e e w td a q ith la uiti in A nt s E o e s s quts s e u w tis in tith yt a F ta nd u fre ng in d w e s................................ e g A t-r v d 401( y e ae rta a egr k e fu s) A o nd loa c f ctsns o e iu nu sn a a tre n B sd s a . um lFor a loa ncen e .......... d e xa ato mo mp vun ale ry 12 ts , -20 31 Holden, Sa Allrah, and Jack 8 6V .5 a% nDerhei. $12, 2004 578 6a 5. .8 “% Appendix: $12,A 655 d 1d 0it .7 iona % l Figures for 3 >2 .4 – t % he 5 Y e EaB rs RI/ICI Participa 6.nt 7% -Directed b b rYe e em ca ar aus in- 100% ing eE ynd 20 oung accoun er t w 16 b or a k la S en rnapshot c s a e r de e c lik reealy sed to o f sl ha ight 40 ve l1(k low y, fr e 12% o) rm inc P 12 ar om p te e icipant s a rcend nt t ao t y h s e a’a v rA e- e c ha nd cdo 20 le unt ss 15 t itm B o e 11 a tlances o pa ec rc ce um ntul a a t ty 12% ee a a rb -e and lanc 20 e 16 wit h their Age 30% $11,600 12% t Ie ss Rnds oue w perc B to rie ent dfe , ages c no. a lin nde m c 31 som ay om 8 (June). no pae tn add w y ha stto ot c . k 100 A Av perc si a 2007 m ila ent ilbale r bec p aa taus tw tew e rn o ow f .e roc 2007 unding. b cr ur i.or s a gm /pd 2016 ong f/0b .9 p rie % a2007 rfs tip cd ipa f/e nb ts ri_i in t b_ he 106 6.i0r- % 20 sixt 087 ies ( .pFi dfg ure 2007 19 17 ). .1% 80 2007 A2016 ge Group 2016 >0–50 percent >50–90 per2016 cent 2007 >90 2016 percent 2016 >$100,000 40s 14% $19,9116% 3 $3 13% 7,988 16%$69,60 14% 7 $14% 122,903 16%$166,9 14% 53 16% 15% 16% p y Be a rie a rtrfi-c , e ipa no. nd 30nt % $20 43 0s he -$ 16 9 (Oc 25 ld 0 (Fm igur tob ore e er 20 ) tha . A )n . vF a 80 or ila b p ele e xa r c a m e t nt p w 2 le 4 w of , ,4 w 3 3t.ic 5 6 he p i.or ie r rb c ga e /pd la ntn f/ of c 1e 8 ps i 8 p e,r a 7n e 23 5 rt 0i- cq 09 ipa uit .p n yd t s he fun f and dld $ s ( 2,no 3 Fi 8g 4b ,u 3a r 1la e 3s 26 a ,n 3c 8e 8d fun nd d 27 s, w ). Fu hilr $ et1 he 2 4,5 6r3 m p 2o er rc ee , nt of p a b a a wmo s d a a ith d la ratit ing n c p inv ion to th c ipa ee rc p e da nt s e rticip to fun nta G s, rr og a d t u e he g e a s t p e nt b o .a e a f 4 sA se nde ss the 0 in s Z 1 s e e (k) op e the t r d t re osi ta t Lions m ir o ze ll oo a a s b c 1–10% ini n ix for e a . tie a tion ng highe Ta s m s a r 401( a w g to n e ith r 11–20% y te - in 20 k q d p tw )uit a la p to n e lie a s is 16 o n fun sr fo 21–30% a fe tc m d h r c w s w a to od e a n in un r rg e e y t e st rete b 31–40% 19 a . -a d ra T lsa a 98 v w te nc o ae f,i la e nt fu te r,is b nd y nu sle 41–50% ing - et s e re w in w H ,o fr a 68 o th o p s ld m e e b e p r 51–60% a a n c 9 ev s er e e e n p ct d re t e a a nt ro of g l. cn e e 2013. of tnt Mo a he 61–70% c tcof he rning o pun la t40 he ns t sb 1( ta 71–80% a a ha c la r kc )a v n ount na e p ce la a ly inc ns ss sets b 81–90% is re a in t o la af n s of he ta e cd e r$2 g s of y 9. 91–100% e e 50 t8 a - d rp ,000 r-a e e etc rc nd ee e fu no nt 20 tn r ly d w l 16 e ith ss , Fi Consu gurel t36 ing , Ma LLP n. yA Re vac ile ant ble ly a H t irw ew d w 40 2.d 1(e kloit ) Pla ten P .com art /iccont ipae nnt ts H /da old m /D Ta erloit gett-eD /u as/ teD Boaclum ance ent d s/ Fu hum ndsa ................................ n-capital/us-hc-define...... d- 37 20s 11% a 11% c Tenure (years) 29% Figure 9, Snapshot of Year-End 401(k) Plan Account Balances ................................................................................ 15 Re Inv 24Gtrir o e e u s m ptm ent e n P Zt la e O rn D opt aio ta1–10% ns Colle ction 11–20% Project fo 21–30% r Year-End 31–40% 2003.” 41–50% Investment 51–60% Compan 61–70% y Institut71–80% e Perspect 81–90% ive 10, no. 91–100% 2A A Fa target ?c tor -dat 4 s Tha 0 e 1 fund (k t ) p tA y pic f O fe a fally c w rti th rebalanc 40 c icip h 20s 1( : a tak n r) gts es eP t- ’a it d in s r at tpo ic ev ip fes rt ufn a od tmen nt lio ss’ ta or A bec ec t in 2 ac 7 n o ount . 0 m o% co p e tiles o n m Bsa p flo a a cn n us cy e ed st 0 s. 6 o% o n gro ck co w 4.t9 h % and ntin mu ore ed 1 f2 o a .c 5us % t h ed is oto n inc 6r 8ic .o 1m % ae llas y lo it appro w 12 lev .9% aches els and . passes the 12 ( cFi urgr Nur e ont te e:s 47 T ehe mp t-enure 3a loy 0nd evr50 ariable . I)n a . In is d d generally ait dion d>1 ition, , 0 yt– ears he 2a 0 y s in p w Y a oe r rke aing rle s re at ss v ciou urrent liks y ely em e ta o plo rs, v ha yer, v a and er ia rollov tt hus ion mea ay rrs fr ound overs om tat t e his ay ears p raev v oeiou fr part ag s e e ic ipat tm ends p ioloy n in e t to he r’s p c 401 or (k la re ) n in plan. spond the w ir itch a urrg ee nt ( p the lan $ $2 15 00 ,0 -$ 06 0 25 38 16,551 247,286 $6,970,322,848 $28,187 39 a the s s At e ct o ya ns ellao o rc -lie a dnd tion ation 2016, (s o ef e the Mo 12ir rning p e multi rcesnt tp a le r o 2015 f athe cco un p aa nts rticip d .no Amo te ants 40 ng in fo pa 40s the r rticip ad d da iti ata nts ob na a in s l e d th iw sc e eus 50s ir res fifti ion mis e)s s .ing or s aix d tie ate s w of ith hirmo e ere ntr tha y an nd Al30 l w y ee ra er no s ot f inc tenu lud re ed , the in 60s t U. he S. pD ee rcpeant rta m ge ent of Pe of p20s rce a Lratb ic nor tipa ag , en B o tur s hold f R ea eu o ma ing 30s if L nina no gb or e qSt uit ay ti st fun ics. ds v 20a 15 rie . dN w atit ion h a ag l C e, ow mit ph ens 73 a tp ion S ercent ur vof eyp : a Erm tic pipa loyn ete s in t Bene he fit irs in t twent he ie s, d p w U. hir a a w S. r tea tw d ib c D .e ipa a pe se b ap 50% r rnt a t i.or i(rc s he Fi t 20s ipa m g ge /pd un nt ld rtes in 19 f/ m of 22 7 bo 3 r) L r .ie . 3 e a% fs b 98 t or ha These pd , tn f/ o E 1E 80 m .45 1 B % p p RI p loy la pe _ e ns rIe rc B c e e 1 _4 e offe nt .B nt 039 % e of ne in 20 re _d tL fit he ong ts Se 1 a 16 i.rr 3 g - % a K e (c cFi t .24O ur c-oun g dit ur ay 1 t e c e .tA 3 t s % 17 fun d 4in b m 0) 2.p ini d . s t a The s d 1 la tf .o r 7 n a % c 75 tsh e ion. d ap rfun e e2 2 r c of .01 1 d e% s a nt 5 ac c of c t . ount P t he t 2 rhe iv .6 a % e b tp nd e a a lr P atof e nc ic 2 ns ipa .20 e 9ion P s in % 16 nts in v (e la Fi st 3n B g .te 9ur he d % ull e in e d 32 e attin, A q a ) 8. uit b .8A a % se. t y b y st fun era a r d c-s te nd of a cont nd rainot but0–2 he ionrs 30 -be p nc e 50s r hm cent ar9 kh 0 ing a .3v% e -su $p 2r la 7v,n a 5 e5 y6 -ss ree ptor s b 7 t.p 3 $e . 45 td 6w % f ,8 e 5e 2n $250$,001 80 1,1 6. 7 6 a 9% nd $1,250 $142,,30s 1 00 80 2 0 ( .1% Figur $23 e7 3 ,8)2. 5 $296,3 6.6 27% 20% 23% 0–2 Years 46 target dat 2e 0% of tE he qufiund, ty, b o wn hic d,h m is o 30s n us ey ually , an inc d/oluded r balain ncte he d ffund’ un 3d 3s .s4 , nam % e. 4.7% 61.9% ( Va Fac Augus nD 20s tors erthe ). $ Tha i, A 62 v 7 Ja 5 a 6-il .c t $ 8 a k 1% Af b , ,2le a 5fnd 0 e ac t t L 4 w o .40 2 w r% i Lu w 1( .ic ck) i.or as. 2 3P g .7 a /pd 01 % rt0. “ ici f/ 1p 6pant ,e The 7r 3 11 4 .2 0% 24% -Is 02 m ’ p Ac _a ac p c t1 p ou of .e 3 97 ndix.p % nt 5 A,ut 6 5Ba o 8-d E lanc 1 f26% nr . 5o % llm ese nt $1 1 5 a .2 ,nd 2% 21A ,1ut 70o ,5 0 m 2 .4 2 a% tic Cont 0r.ibut 3%$ion Es 40,51 09 .c 2a % lation o 6n .6% Six percent of 401(k) asse ts were invested in company stock at year-end 2016, the lowest share observed in old this a av c e The ce So ount r a a r n g urc t a e p he ly e e: s. arc s c Tp is c abulat e a o .nta r un ticg t io ipa e b ns a o n flf ro a t, nc 401( mt he e EB inc k Rlow )I/ re Ip Ca Ia e P rs r ticip art e td he ic ipant 1. a nts a 7v -D p e e w r irec rc a ith g e te ed nt 401( ), R w t ete ith irem nur k) the loa ent e ( ns Pc tlan he o ns oD uts highe o atli a ta dC and otion r llec in the tg io o n a f tc P the e ro ro nur s jec ir s e tmulti a . llof pa tp he rtici le a p pc a a crnts o tiun cipa b ts o.n th Future t, w the ith low a joint nde w r re ithou the se aa rc t v401( h erw ag itke h )) , 60 -33.8 20% 20% 401(k) Plan Age Group >2–5 89.1% 70.5% Ag1 e 1 G.r4 ou % p 2.5% 19% 4.8% 19% FigD ur ee fin 37 ition o , Ma 30sn f 401 -y 3 7Re .06( 0 cke .8 )nt % Ply la n A H1 ir.e c 9c d % ount 401( 1 B bk .a 7 ) % la Pnc arte ic 2 ipa .1% nts Hold 2.2% High 102 C.onc 8%21 e% ntr3 a.t 4io %ns in B 3.8a % lance4 d. 6Fu %nds .............................. 5.3% 11.4% 38 13 20 Unit 20 52 16 13 pe e , d For r64 c St ent m a pt e e of 55 rs, M ce 0 pn 0 A ata r tr of ic nnu ch 201 ipa 40a n 1( l Re ts in k 5). p p W or tahe a rttsh sic ir (ip ingt Ve for ant rton, si ie s he on s, a D1. ld C nd : 0) b U. . a 5la 3 W S. nc p aD e sh er ed c ingt pe a fun nt rton, m of de s t nt p D hr a C rof 18% t oug : ic U. L ipa aS. h bn o tD t a rs in t , reg B peur atr-he t e d m a air u o e te nt si fun f L xof tie a dL b ssa or hold b a nd or St, a ing non E tis mtno p ic -tloy s. A ae rg e qe e v uit t a - B ila d ye ane fun b te le fit b da s Se a s. tla nc cur edi ty A de m cong reased par ov t -4ic 0e ipa r tn he ts w saho m40s ew peerreiod offe , frrom ed t65 arg p ee t3-r3 d c .5 e a% t nt e fun for d re s,c e 70 nt ly pe hi rcre e 4nt d .8 % p he arld tictipa hen mt s in 19 at yea9 r6-8 t 1e .7 nd % o 35 20 16 pe. rc Ta ent rg e fo t-rd raetc ee fun ntlyd hired Fi 33gure 10, D 0% a istrib nd com up tio 17% any n so to f c4 k,0 a 27% 1 n( dk) GIC Ps lan an Acc d/or ount Balan17% ces, by Size of A17% ccount Balance ............................................ 16 Note: Funds $ 1 inc ,2lude 50-$m 260s ,ut 50 ual 0 funds, bank $3 6 c,o 3llec 39 tiv1 e 7 t,rus 47$ t2 s 5,0 lif ,1 e 3ins 6 uranc 64 e 5 $ s,7 eparat 46 2,4 288 e account $1s1 $ , 8 3 and ,1 8,5 3any 6 06, 3 po 95 o,led $ 81 79 4 inv 7,0 es 4t8 ment pro $2 duc 8 $7 48 t,5 prim ,3 50 35arily invested in the Investment options are group 16% ed into 16% eight broa 16% d categories. 48 this pla For n 30s fe loa a yture e na 0% r a-c ec 7 w nd e 6 ils .l 0 s2015 e % w xp alor s a se imi s 5 sthe .e 7la t % r alo lin loc ng ea itud ations 4 rl.ie 4ina % r ,y ls e a e ae s rs p Fi .e 3 c For g .8 tur s % e o e f x 21 thi amp in s2 c l.H e 2 o,% o ns in ldoeli 2015, n da etion t 1.a 5 l. this % in 2017b mo mera 1 e .s . ur 2 d% e et a w ila . s 16 0.5 % percent; 0 .in 3% 2014, 0 17 .2% percent;4 .fro 3% m Retirement Income Adequacy.” EBRI Issue Brief, no. 349 (November). Available at t >he 5– 1d 0atabase. Thi 85.s sh 3% are has falle 63 n b .5% y 69 percent1 si 1.n 0c % e 1999 when com 3.5% pany stock account 7.e 4d % for 19 percent of account 1 0b % 10 ala %nce ( A tcco he u highe nt Bar la tnhe ce acc 41 ount balan 20s ce, the low 30s er the av40s erage), a 50s nd salary 60s (the higher A lt lhe participant’s Holden, Sarah, Jack Va 0–2 nDerhei, Luis A >2lons –5 o, Steven B >5a –ss 10, and AnnM>a 10 rie –20 Pino. 2014. >“ 20 4– 01 30(k) Plan Asset A >30 llocation, In any given yea Nr o, te:t The he a vc e50s ha rageng acce ou nin a t bala n cp ea ar mt oi nc g ipa all 27n 3 .1t 3 m ’.s a i5 llio % n c 40c 1oun (k) plant pb ara ticla ipan ntc s e w ain t s5 $.73 5% he ,358 ; d thea m tea db iana ase ccouis nt bt ahe lanc 6 e1 su w .1 a% m s $ 1of 6,836t.h Ar ce coe un tfa ctors: Deloitte Consu 40s lting 51 L.L 6P % . 201 27b. .5% Defin 2.e 1d % Cont2 r.ibut 6% ion B 2.e 9nc % hma3r.k 6ing % Sur 4v .7e% y App5 e.ndix: 2% 20 617 .0% Edition 5.9. %New1 Y 3or .0% k: Deloitte 25 w The sec wurit w p.b y e indic r ls c.g e $nt 2 at ov , 5 a ed. o0 /n g th 0 e e -c$ rs/ of 6 s,e t2 a40 b 5 b0 s/ le1( b va e klu ne ) ep fit fa ur n s/ t dis c 20 ipa 15 n/e ts hold b 16 b,l00 998 ing 57.p no dfe quit 1,2y 7 4f,unds a 11 8.5 4% lso var $ie 66 d, 8w 31 6 it 4 ,h te 6 .9 6% 2,0 nu 70re—participa$ 2 n2 5t.2 s w 7,% 45it 4h five or fewer fun p A ass a drm e t ditini s, sim cs r ipa se tnt rp aril s in 20 te ion (Se a asent r to e t16 he dp 30 t. e sh C m o p ab m e re e rp r c ) a in e. ny nt A 20 v of st a 15 ila otc .he b kle a Mor a la s so d sets t e w e w t ha c of w lin n ha .d p eol.g la d nlf ( for s offe ov 52 t/s he it p r e ing e ts/ w rco d esu e nt gfa r c)oup h f ult of / unds in s of fil 40 e1( s/rk e e)b c tsa e p he nt a/r rir ly te i c se in hi ipa v a re e rns c d tthe s m phe a r es/ rnt tld isc tlin ipa a ta te is rn g ups. tte ic s, f ts/ -drr a e om tte ir e fun 9 m p e d e n s, rtc-ent of 2010 Size H old Th e e of thro n, p40 oSa sug iti 1( rv h a k Pa e h, )2013, rt c P ici o a la prre nd an Ac nt sl18 a Ja intion cl c c upoun k de e rc V b the a ee t tw n 2nB 7D t; .1 a ee la m e in rn ihe ln li2009, oc te ni. e 4nu s 020 1................................ (k) re 04 19 pa lab n np . d pe a “a rc rtC ic ciont e c pnt; a onun tr s ibu i in t n tb h2007 t ea ion yl20s e aanc r-e B a e n................................ e d nd ha i2s0 1e 2008, v 6xp ior EBe R c of I/ Ite C 16 I40 d 4 0 p b 11( (k) e erc ck da a )eus t ant; P bla a es e n P lon a ................................ and ndg a t- h in rt e te ic 22006, r 1ipa m .8 men ilmp lt i os D 15 n loy 40 p ur 1(k) e eing rc e ps le a n h nt. B a.................... ull v e ha and d mo Bea re r time 13 >10–20 $0 balances are7 p8 ar.t8 ici% pant account balances h4 e7 ld .in 5 4% 01(k) plans at the part1 ic0 ipa .4 nt% s’ current employers an6 d . a0 re% net of plan loans. Retirement11% savin1 g4 s h .9 eld % in Account 40s bal7 a6 n.c 6e % and t5 e.nur 6%e are4 a .5 ls% o posit3 iv .5 e% ly corre 2la .0t% ed among 1.5% participa 1.2n % ts in the 0.4 % 2016 da 0t .3 a% base. A 0 .p 2a % rticipan 4t.’2 s % www.ebri.or -5g 0/pdf/briefspdf/EBRI_IB_01a1-2010_No349_EBRI_DCIIA.pdf <0.5% Zero (no 60s loan) 3292% .8% 80% 675% .4% 78% 6 87% 0.8% 81% Fi sag la ur ry e, 38 the a, ss Ma 40 low etn s. Re e yr Re the ccee nt a nt vle y ly r hir aH gir e ee d ) d (40 Fi 40 g 1( 1( ur kk e ) ) p 50 P aa r)tr. itcic ipa ipa nn ts c ts H on old tribut High ed C tonc o this en ttrra etnd: ions t he in Ta y te rnd gett-o Da bte e le Fu ss lik nds e .......................... ly to hold company 38 $6,250- $ 1 O 2f,5 w 00 hich: target-date fund7 s,4 a 6r1 e an option 1,218,81 9.8 0% $65,34>2 1 50 ,0 .– 5 05 % 7 ,Y 3e 60 ars $ 14 5.3 2,% 610 10 34 Account Balances, and Loan Activity in 2013.” ICI Research Pe5% rspective 20, no. 10, and EBRI Issue Brief, no. 408 C So onsu urce:l t Ting abulat 50s L paL io rtP ici ns . pA a fn ro v ts4 a m i9 n il .a tEB 1 hb e % yle R ea I /r-e Ia Ctn I3 d P w . 2 2 art w 0 % 0ic w 7 EB ipant 2.d RI2 /Ie -D C .loit 5 I irec d % ata te b ted a.c seR om 3 . et .2irem % /cont ente 3 P nt .lan 6/ % dD aat m a /D C 4. oe 7llec loit % tio te n /u P 6. ro s/ 0% jec Do t.cum 5.e 7nt %s/hum 5.9a % n-cap4it .2 a% l/us-hc 12-.d 0e %fined- Figure 11 0% , Age Co planm s atp pro evsi ioutio s emn plo o yef Sel rs or rolect led oved 4 er into IR 0 A1 s a (k) re n oP t inlan clude Ac d. ThY co ee tea nu rs of urn e vt a rBal T iae bln e u ian sre gec nee rallCa y yete ars g wo orkries ing at c ................................ urrent employer, and thus may ................. 16 1 b ye 5 ull a p r e ? s of e t ins rce/2 E nt teq 01 nur he u3pe itld ey f w non ns u e 20r n ionp 0e- 1996 8 d tm s a rlor c a gonsi nbul e et 2 -li 0 dk st 1999 0a le e 9t ly te of in.pd b not p aoole la 2 fnc t 0 2002 o 1 0d e b d e inv fun inv est 2 2007 d e 0s, a st m 11e ed nt nd in e s p 2 2008 2 rq 0 p im 1uit e 2racy re il fun nt y2010 inv he 2d 0s 1e ld 3st (Fi b eg ot d 2012 ur h. in st 2 e0 Ta 1 27 4oc r)g . k2013 es, inc The t-d 2a 0 1 p tluding 5 e e rfun 2014 cent d e 2 a us 0q g 1uit e 6e 2015 of v ya m rpie a ut 2r s w 0tu 1 ic 7 aipa 2016 it l funds, h p nta s hol rticb ipa d aing nnt k 40 to Th Othe 1( ack c isumu ) r sp yrla s ete la s n a 0% e te m a rc ca o ch n f o c unt s alug a cc s o s g b ific un easlta t asn tion b th c ae la as in 199 nc t do mo e e.s s H no t o401( w 8 t t e cv o oe k ns 2 ) r, id p p aa e e rticip ro r rcth ll eon eva te nu nt in 201 r s mb fro dm o e r no 6 a o . f t p d rma e isvtiou k inc e s a t c inv etiv me e ps loy c tme ha er’ ng nt s ep osla p to tions n c th oe uld p irre ainte s se snt erf t ee adre ll o to cw aa ith tions githis ve n d urin p po as rt g 24 iti ic a v ip n ea ynt , >20–30 72.9% 38.0% 11.8% 8.3% 14.9% Markets.” National Tax Association Proceedings, Ninety-Sixth Annual Conference on Taxation, November 13–15, 2003, c All 31.6% 5.0% 63.4% tenure with a b n employer serves as a proxy for the length of time a worker has participated in the 401(k) plan. Indeed, 50s 77.2% overstate 5 ye.a2 rs% of participa4 tio.n3 in % the 401(k) 3 pla .3 n.% 1.9%20% 1.4% 1.2% 0.4% 0.3% 0.2% 4.7% $1 12 A,l5o l 0 0-$1–10% N 25 e,w 00 c 0ontributions by 4t,he 379 par2% ticipant 1,, 4t 0he 4 6% ,4 100% 5 e1mploye 9% r, or $7 6 b,ot 46h; 5 100% 10% ,4 91,729 7% $ 100% 7% 54,445 47 Relation stoc sh Ck ip o. mA pof otn ey A ne tg sa e mr a -a ye nd nnd ot aTe d20 d tnur o16 100, e pin p etrce o n40 la t bns e1( ca u k offe s)e P ofla r roing n A undinc c gom c . ount pany Ba sla toc nck e,s le ss than one-quarter of recently hir>3 ed 0 401(k) plan 13 0–2a >2–5 >5–10 >10–20 >20–30 ( U. DS. ece Dm ep ba errt) Tm . heA e Sv nt &a P ilof 5 a 0b 0L le ia s b aa nor t i nw , deB w x ur o w f e 5 .ic 0a 0i.or u o stocf L g k/pd s a chb of/ or sep n e St forr20 a mta i-st r1 kei0.p c t s s. 20 izd e,f a liqn 16 ud id . itw yN , w aa nw t dion i. ne db ua srl C ti.or ry g o rm o gu/pd pp re ep ns f/ reb sa ertn ie ion S tafs tiop n.d ur f/E ve ByRI : E _m IBp _4 loy 08 e_D e Beecne 14fit .40 s in t 1(khe )- 60s 52.8% 3.6% 2.9% 3.6% 4.4% 5.0% 5.8% 5.1% 4.1% 2.9% 9.8% c g b co ont iv ut rre In era n rla p ibut th y ltion a ee n a> rion r. y 3 the e b 0 For a e sr - c b ty a 2015 e e us p xa nc e es m hm ao (p la f ro le a t o A,ll e rp 6 k o ts a arget 6 tions ing tv n . e 8 dIC r % a -dat - c ta su I o p e s uld re ra furv v und vs e a e y g il te nt y-a iv pic y ab e e p ally o le d p f a .) e rebalanc r,P s e ndix.p 3o ho re c 3nly o .li 6 rt rd m % - es k 1. t ina e d e it5 nu se f ry po p pre e e rtre r frc d o s lio s e c e ent o m ta ovr bec p e c o 1loy ring h f0 o.the a m 9e na % e emo les ly $4. as z re hig fin o4 c g us tha tr h ed 1. ilali n o c 4 o n c 29 n mil o gro 1 un in 2 w m li. tt o 9 h 401( il % n and b lia o pla n m a k o nc rtici )DC re p e fo la .p c p Th n us a la nts ed a n esre os p n d e a inc r tirticip s s a o w s w mo n e e me a r 9 fro e nt .4 p d m % a a is c rtici the c ce ornib un p 2000 ats nt le fo lo e un v ains dde .nc e As no s ee qt uit Ayllo Not fun c e: a d Act s t cio oue nn t nds bab lay I ncteo s nve afre a ll parti a scs s t ipme ana t la acnt croy u nOp in t bc alr ate nicon a esses. hs eld a in nd 401(k Age ) plans , at S the a plary articipa, nts a ’ nd curre nP t elan Siz mployers ane d a re net More Th of plan loan $1 ans. 00,000 age and c te olle nur c ce ti. ve Y oung truste Less Than $10,000 s, life r par tins icip ur aa nt ns w ce sep e a re am raotree alik cce ou ly nt to s, hold and tot arh ge ert -p doole ate d fun inv ds t est hm an ent old s. e r participants. At year-end >$40,000–$50,000 Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. Chicago: $ 44 25– Eq ,0 53 0 ui0 ti. e -s $W 6 in2 cl a,us 5 dhin 0 e0 eqg uit tyon fun, dsD , co Cm : pN ana y t siona t3 o, ck, 35 al T 3 nd ta hex A equss ity p o o2 c rt,ia i3 on 7 t io o 4f, b 8 n. a 4 la 0n ced funds. Fu$ n1 ds 3 1 in,cl 1u6 d2 e, m 34 u9 tu,a5 l 3 fu5 nds, bank collective$ t5 ru5 s, ts 2,3 li0 fe 2 Of w hich: target-date funds are an option 68.3% 74.7% 70.2% Ov Fi 67 g e ur p 60s re a erll, lo c39 ent , Ret a A ns of 7 ire s8set A m .p f 7 er n a % om t r s>1 t aillo vc in 0 40 ipa gc % sa 4 h1( – n t e.ion D l3 2 d tk s w % 0 in)% p p laila ntis sh a ns a tt rp 3 ibu c re t .8 c e vioun % o nde tu ion o s em td p b lo t f 401 a o y2 ela rs .b 9 nc oe % r ro ( 2% e sm k ls of l) e dP a oll, w vla e1 le r i n Ac .n 6 ss to % it IRAs h 4% tcha ount a a n $10,0 re si za n 1 o .B t 3 b ina % le cla lu6% d00 m nc ed. a e Tjha h o e t 1 t o r.d e it 0 n B y % ufi re av of l5% ve a anc rie or ab ligib e le 0 fe d is .4 gw Fu le % ene ends 40 r3% ra ly ly1( e ye A a k a 0 rm rs ).s of 3 w p ong % oa rkr in t t 4% g e ic Re a nur ip t c a 0e e nt .2 nt , % s in a w lyhil He irll ea d 5g .5e% 20 as it approaches and passes the target date of the fund, which is usually included in the fund’s name. Figure 12 ap, aTe r Tt hiec nur ipa Ruse snt e C lls he 2 o 0m 00p ld Inosit dec 2016 xo m im on ea p sa EB of uny resSe R ts hIe /tle I oc C pc eIrtk fe o, rd m c ao 40 nm ce1( p oa f k tr h)e e P d 2,la 0w 0n 0it sA h a mc ac llb oun esout t U.tS 40 B . ca o la m ppnc e ar nc ie ee s C nt (ba a t sof e ed g a o or n ll 401 ie tots al ................................ m(ak rk)e tp ca ar pt itic aliip zaa tiont n) s. incl uded ................. in the 18 tha S EB o Unit f ee R ro t I/ e Ta 9. lld ICI o4 b vSt e le p A r 401( a e D6 la t rc lA e se s, M s llin e nt kts ) U.S o d a a f armo ta 5 DC c.6 h 201 b De .ng 6 ap % sp l 8 e a the a 6 n rtm s 6 .ug 5 . p % 2 p a W e g .a rticip 5nt e a rticip % ssh ts of ingt atha a nts Lnt a 2b t on, . s 0 o cth % ha r, we ith 6 D Emp ng 5 sC he .e 8 : a2 % d cU. e loy .c 6 rth o % S. nu e un ee D mb a t B s e b e sp a 2 e ne ea la .rt 8 rfi nc o % a tm ts f lloc 1 e inv 0 e s S.nt a e 7 g e tion c % re 3 s urity of .tme 6 a% te L oa r f nt Ad b the tha oo m r4 p , ir n .ini tions 5 Ba $100, % ur s ctra 3 ce .o 4 a p un tion % u o re 000, 4t s .6 e b f L 201 % nt a a la a e sn b d 8a 3 c or d e .4 p o s.St e 9 ein rc % sa e no t 2016 is nttt ic o influe 4f s. A .a 7 the 6nd % .7v % nc m aila e ha 1p b 1d a le .3 rticip tw % ato o an r ts fe.w er U. upd In a S. a dD td ee it .p p ion Ac a dr fct ount t m o ed nt balanc ev of oting L es a b are a or g , part rE em a ictipant p eloy r sh e ac e ac rount B e eof ne balanc tfit he s Se ir es a s c held sets urit in y t 401(k A o db m a ) ini la plans nsc te r a at dt ion. tfun he part d2 s, r 01 icipant e 6. ce P snt r ’ iv clurrent ya thir e P e em e dns ploy pa ion P rers ticipa and lan B nt are s a ull net le so ha tof in, A plav n b est bre acco t m of e a insurance separate accounts, and any pooled investment product primarily invested in the security indicated. Relation cush rrenip t em B pe lot yw er, e ae n b dn 401( thus may k ov)e rs Pta la ten Ac years c oo f punt artici pB atia onla inn thc ee 4s a 01(knd ) planSa . lary 17 2016, 64 $p 6e 2r ,c 5e 00 n-t$ 1 of 25p ,0a 0r0 ticipants in thei1r, 3 t6 w 1enties held 2,0t4a1 Yr, ears g 85 e6 t- ofd Te atnure e fun$ d1s, c 20,2 om 16,p 2a 17 re ,5d 4 5 with 45 perc$ e5 nt 8, 8of 76participants in A target-date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approaches and The analysis includes the 3.6 million recently hired participants (those with two or fewer years of tenure) holding Asset alloc a a Ru tio sse n a ll 30ls 00o Inv da exr ie (ws w hich tit rah p cks a thret ic 3,0 ipa 00 lnt arg ea sg t U e.; S.Fi co g m ur pae n ie23 s). demonstrates this with an analysis of asset allocation by Endno lot ane ss . o R etireT mot ena tl in savv ine gs st he mld ent in pl re an tur s at n o prev n a ious cc oun emplt oy b er asla or nc roe lle s, w d ovhic er in h d to Ie Rp As ends are no on t int che lude p d.erformance of financial markets 73 group pA elrs ha lceP nt a v r iof 7 ng ti6c.p ipa 8no a % rn >2 tloa itcs, b 0 ipa – n o 3 5n y 0 .0 t % ut P s w % a st rta itic nding h a ipa 4c.n 1 ctoun % a Atg a te ll. Fo b ................................ a3la .4nc r% e 1% exa s g mrp e 2le a .0 t S , e % iz92 re 3% tof ha p Ae n $100 ccou r1c ................................ .e 5nt nt %B 3% of al ,00 an pce 0 h a 1r.t2ic a% d ip 3% m ant ors in t e 0 .t4 h................................ % a hne 1% ir 10 t w y 0e e .3 nt a% rie s of 3% s, 75 te0nur .p 2e % e rc ................ ent of 5.2% 39 T So he urc an e: al Ta yb su is la in tioc nlu s fro dem s tEBRI/I he 27CI .1 m Pa illio rticin pa pa nt-rt Dir ice ip can tedt s Ret inire the me y nea t Plr-e an nd Dat 20 a Col 16 EB lectiR on I/ I Pro CI jda ect. tabase 401(k) database. y On 5. e6 a r a p sv e e o rc *ra f Aetg nt e tar e nu , ge c p ha re ta -d,rticip n at a g e n e fd d un a 7 the d nts tp ypi e a h rc cs a ale s v ly e nt e re t 10. a ba oll f la othe 4 nc ca d es tion is m tinc ith s a o po d t f rt o the b fp o etions lio tw ir te c oe o be n ntrib but, ctw om o ution o e n a lend s asv s e f fiv od ra curin e us g e y ed ,e g a c o 2016 ho r n sgr o oos f w e t( t e h s o nu e an nly ed re H m 2. o ( os ld 5 re ee ( e fH n o Fi c oa us ld g nd ure ed en S o a c n 12) hra nd inc . os V m sa e nD 2018) ase itrhe ap . pr i Ana 2001c oaclhe yzs in ) an .g In d 2017 Employee BSo ene urcefit : T aRe bulasea tionsr fc roh I m EB ns Rt I/i IC tut I Pae rt. ici20 pan05 t-Di. re“ ctH edi st Reo tire ry m eof nt Pl40 an 1( Datk a) C oP llla ectn ios: A n Projn U ect. pdate.” Facts from EBRI (February). passes the target date of the fund, which is usually included in the Saflary und' Ra s nam ng e.e 20 ww 14 w ? .b For ls b.g Bon m $1 ov 2 55 5/n d ,0 0 f 0 c 0 A 0 u s/ -n $ ennu 2 d b 5s/ s 0 balanc ,b a a 00 r e l Re e 0 ne ed afit ny p funds or s/ p t20 s oole in ( 201 16 Ve 6; d /e r t si he a bon c b 3. 891 c 0 l00 ount m1. illio 59 0) n .p . rec pr W d ent im fa ly sh a hired r2il ingt ,y 4 4 part inv 3on, ,3 ice 1 ipant 8 sD te sC d ho : in b lding U.S. tond arget $D 1e 5 s. dat 7 p,a 1 e r 6 ft unds 1 m ,0e 3 in nt 5201 ,2 of 7 6; 8 and Latb he or 0.6 , m Eillio mp n $loy 64,e 3e 2 3Benefits Security m a ore likely to hold these diversified investment options. At year-end 2016, 71 percent of recently hired 401(k) The sample of participants changes ov er time. H 48olden, Sa3rah, and Jack VanDerhei. 2004c. “401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2003.” the Thir e si anx at ly bie sis. Re s i25 ncludcee snt the ly 1 .hir 3 me ild lio np pa arrttiic cip ip an atnt s ws w ith tw eor e or m fewor er e ye lik arse oly f t et no ure hold in 20 1t6 a r ag nde it n- d pla ants e ofun fferind gs t com ha pa n th ny stose ock a sw ait n h mor investme en y t oe pa tio rs on n. the >5–10 Years passes b Fo the rme trar lyge the t da Lethe mo afn tB he ro f th un erd, s U w.hi Sc . h Ag is g rus egua atelly B in onc dlu In de ded x,in t h te he B faun rcld’ ays s na Cam pie. ta l U.S. Aggregate Bond Index is composed of securities Y inv d ad a e Th ta d a eirtion, st ,-is E Ut m nd pk e a us the nt tt R 20 e o a rn op w 16 p nd pe re ti s ions rc Sn Youn li d en m a ra tnd iv ina ag , pea sh g es n ry s w on 2018 ot m in a ay tna e p of he ll a no a lrt r y 40 te a s ad s p b is lloc 1( o b d y fo rte y tk o r a e un ) p 1ts d 00 ion o a P trictio d r tha a pe t r itha c rc tic ipa t en f a 8 ns ip t t 401( nt be a p s p sets nt e clrc a au as’ g c k e se e ) nt e A in a d . p o ss Fi fo a o ro e rt n f g n ind t un DC ic ur loa A ip di e ll ng a n p oc i2 nts v la . a 4 p idua a n mo t ion a prrun a e e l’rticip sent s a ................................ no ts.c t s a c a na ount ntiv ssset a em ; — aa tha dnd le loc t p is a articip t,ion b whe a................................ n nt y g sa -d ivire le an rcyte n r d o a p nge etxc ion ha a snd ,ng the e bsy y ............. w d inv ithi o no en st t tm he e 21 nt ? 401(k) p >3 a0 r– ti rec 8c 0ip ent %a ly n hired ts w partic ere ipantsa ho bit m lding non-t o 3% r arget e li -dat kely e balanc to 6% ed h funds ave l in 201 6% oa 6. ns outs 4% tanding a 2% t year-en 5% d 2016 than at p Fi (Fi a grg ur tur iceipa e 13 12 nt , )s in 40 .GI 0C 1( E st xa k he are ) m ir P guarant la ini for n A ng teed ie cts, a che inv ou es nd nt in tm t e ent B 87 raa cla c op tn ntion o ec rac re cs I te snt .f b n c of ot reh a p aa se rg tic W eip it aa nd h P nts tae rin t nur ticipa he e w ir n tit si A h a xt ge ie c c s ha aoun nd d Te t no bnur ala loa nc e ................................ n es out s revst ea als nding that , afo t y r eaa r................. g-iv end en a 20 g16 e 18 H b olden, Sourc Sa >$r2a 5 e: h, 0 , T 0 abulat Ja 00ck ions VanD f rom er h EBR ei, IL /Iuis CI Part Alons 1 ic,1 ipant 79 o, -D airec nd tC ed ra R 1ig 4 et,9 irem C 33 o,p ent 6e 42 la Plan nd. D at 20 a 08 C $1 ollec . ,3“ 740 2 tion ,71( 7Projec 7k ,5 )8 P 8la , t0 . 5 n A 0 sset Alloca $t 9ion, 1,925Account Note: Account balances are participant acco unt balances held in 401(k) plans at the participants’ current employers and are net of plan loans. Washington, DC: Employee Benefit Research Institute. Available at www.ebri.org/pdf/publications/facts/0205fact.a.pdf Row percentages may not add to 100 percent because of rounding. 26 A pa drm tiini cipa stnt ras he tion (Se ld bp ala tenc m c b ee dr ) fu . nds, Availa com ble paatr e wdw w wit .d h ol.g 29 ov pe/s rciteent s/ d ae t fa ye ult ar/-fil end es/19 eb98 sa/r (e Fise gur are c he 35r)s/ . s Ov tae tis r ttic he s/ r se atm ire em pe en riod t- , Note:c R c ov o ew rin c go g m ov po ern ne me nt ns t a m nd ay c o no rpto r ad ate d b to on td ost,al m in or tfg irs ag te c -b oa lu ck m en d be sec cu au rits iee s,o a fn ro d un ass di eng t-b.a F ck un ed ds s e in cu crlu itide es m (reut ba ua lan l c fun edds mo , ba nthnk ly b cyo m lle ac rk tiv ete trusts, life Not Note e: : Ac Acc co ou un nt t b ba alla an nc ce es s a are re p pa arti rtic ciip pa an nt t a ac cc co ou un nt t b ba alla an nc ce es s h he elld d iin n 4 40 01 1(k (k) ) p plla an ns s a at t th the e p p a arti rtic ciip pa an nts ts’’ c cu urre rren nt t e em mp pllo oy ye ers rs a an nd d a are re n ne et t o of f p plla an n llo oa an ns s.. Retirement savings held in jI 1ob nv: es attm ye ent ar -C eom nd p 20 any 16 , I Rn 5 ost 9 w perc ip tu et ent re c e ages Pnt er m spe of ay p no ca t t iv r add tiec tipa o10 100 , nt perc no. s w ent2, a it bec h tw aus nd e o oEor fB roRI unding. fe w Ise su r e y eBarrie s of f, no. tenu 27 re 2 (A heugust ld targ ). eA t-v da aitla eb fun le a dts, compared d ac iv c Be io dun e c athe t, us Ret in e ir ire 401( li a m C ne s e os n m e t k w s po ta) s vith nent in p a g1 la mo sre 0 s hn 0 e m s c lng d e ay o iw nnt r p no e a fl ar e ll tp ne w add sri n ain e o . t r p tr Ind tro o rey tvo e id ote a u al uc se r bec s ede m ., d p Ao aus l l1 oea y0 s en e b s 1 rs o o 2016 o tha ftut r ro o ro unding. 5 l35 n le0 d 1 0 fo oy vp eun e r i e a nrc rs d to e IRAs th a nt g a o a 5 t o, re 0 14 f 1 o np o ld ta t p o ie rtici ne cr 1 lrc u,a d0 e e p nd d 0 nt a . 0 T nts hlon o e tf efo g p nue a re llr rticip o - v 1w t a,e ri0 e anu b 0 d a le 1 nt re a i st g o d s 1/ e n5 tr e n e,m ra a 0a d l0 lp yse 0 y lso d ee ay t rs in e a w el o the s loc rk ma ing ir a a tion y t>5 a cno c ,0 o st 0 un tra ha 0ts te v e g in y p.2015. a P rticip lan ated Figure 40, Average Asset Allocation of 401(k) Plan Accounts, by Participant Age Among Recently Hired 401(k) Plan options. Sa N A olll ta e: 19 r Eq y 96 ui inf ty >8 or fun 0m 20 ds %a 00 in tion is clude m 20 ut a02 v ua a l il fun ab ds le 20 1 , ba 1 05 for 0 nk ,7 9 ca 4 o lle s20 ubse c(* tiv 07 )e tt ru of 2 st7 s, 20 ,1 p lif 4 a 08 1% e 8rin ,t3ic s0 ur ip 8an a 20 cnt e 09 s in sep 1% arat 2 the ,e 20 04 ac 10 5 20 c ,8 o4 un 16 6(* t,s 5 ),E 20 5 an B 413 ,d R 1an 9 I/I 9 y C poI(* o 20 40 le )14 d 1( invk es ) tm d 20 $a 1% en 7 15 t 5 ta ,pr 3 b5 o a 8 du se. c 20 t 16 Participant For data y ea on r401( -end k) 2 p0 la15 n a. sA se t ty s,e a pr a-re ticip nd a 20 nt16 s, , and 19 p pla er ns ce thro nt of ug ah ll 4 2015, 01(k s ) ep ea U.S rtic.ipa De np ts w artm ho enw t o ef re L aebligib or, Emp le for loy loa eens Be ha ned fits loa ns ( gFi r So oup guur rce , e : a T 51 v ae b) ur.la a g tioe n sa fc roc m o EB unt R I/b ICa I l Pa anc rticie ps t ant-D end irectt eo d R inc etire re maese nt Pl w an it h te Data C nur ollee ct. ioFor n Pro e jexa ct. mple, the average account balance of U.S. Dep Ret pa lar n ic re t sam m a pt e ite p n a re t nt lis z va ia o vtu of iin o sg n e s)m L .h T pa elh lo d b e y i or e n irs n pd , lo a er n xB ro s 's ur a l ltt eo p de tre a oa lv v e ru o io e r i u tu s n r to e n f L m IRAs cpo la o ny s b e a isor rs re t s o n r ro o oSt t f ip ln la e rcid c lt u i e o dst v e a e d p N ir i .c pumber n rs. 20 e toc IRAs iatio17 of n a/re d P e. n art poN re t ic ia ci nic at pa ltion uio dnts e nd p a . lT iu l C n Pl h se t ino e an c nm o um rep e ve a ans ri sa a ba l e p t e ision S r c ge en nt ea ra gur le ly ov yfe e tah rs y e : w oo rE irk gm iin na gp l a iloy n t vese tm ee B nte . nefits in the Balan ? cin es s, a ur Ba annd lan ce sL c ep oa ed arn Ac at fe u ac n tiv c d os iun t ya t s r in 2007 e , an p d oole any .” po d o Ianv le cd ce o insunt vtes mts in e mn en t v tC e pr om st odu ep d ca tin b ny prim Iot ar ns ily h st t it inut ves oc et k ed Re s in a sea nd the r sb c ec h P ond urite y s. The r in spe dicat ct ed yiv .a e Tr he e 14 c ten , lano. ur ss e ifi v3, a ar ed ia bl int nd e is o E ge tB w ne RI o ra I lly s sue Change curre s in A nt emplo ss yee r, t a nA d l th loc us m aatyion oversB tae tet yw eae rse on f pa Y rtie ca ipr ati-oE nnd in the20 4015 1(k) pa land n. Year-End 2016 21 Note: “ Funds” inc Nolude te: Funds mutual incflude unds m , bank utual fcunds ollec , tbank ive t rus collec ts, lif tive e ins trus uranc ts, life e s ins eparat uranc e e ac separat counte s,ac and count any s po , and oled any inv poes oled tment product primarily bulletins/private-pension-plan-bulletins-abstract-2014.pdf recently hired 401(k) participants have become less likely to hold company stock (Figure 41) and less likely to hold Furthe in Sp401( onso rmo k r ) cCou pr u N p rre re im o la n t, e: nc ar n t eCho s ily T mil he p fo in lo ov m yr i f e es e edian r, th Ame t taed e na dir l. in th ac ric e u2001 eq c sntire o a m ui unt at20 y ie o s balanc fo v1 .c e I8 a rs n un re ta ad ind te d e e di y at rs tic tha e io a y .a rs n, ear-end te Th t o 40 f 401( s pe 1 a (k th rti R ) c201 a pa ie pk t av) rt 6 tie in o ic w p nnu as ip ia n 2016 an t rticip e $ h e t1Ac s 6, 4 m 836. 0, 1t a ay (k the nts o ) ho p f la 1 ld na ra 978 . v eq e re ui ra ly tc ie g o s ma enta t hr nu d oine e ug mb c h dha e ba a r la ng o p nc f ro e ed inv sv is fa un e ft ion s ds e tm r oth th e r c nt a e ot m init fu b pa end c ny ia a l s m o tp o p e o ctions int kInt ?so e ee f rna a e v Fnro a ig l il ur R a e e ll bm 30 v le ee fnu fo o nt. r r e (Co For de www.ici.or Soug rc/pd e: Tabf/ ulp atie on rs10 fro- m02 EBRI/I .pd CI f Pa and rticip aw ntw -Dirw ec.e tedb Ret ri.or iremg en/pd t N Plu an f/ m Dat b brae ie Col r fs o lefp cp d tio lf/ a n Pro n 08 p je04 a ct. rtib1.p icipan dtfs with 52 perceont of (W *)p it =a hdr lr et sis c a ipa tw ha an n ls, b t 0s w .5 p or it errh mo cow enting, . re taha ndn fiv loae n r to ep10 ay m yeeant rs of s. tenure, and 31 percent of participants with more than Fi Segcur urity e 14 So Ad P, ua rc mini 40 ret: iT c 1( aipa s bk utra l) an ti o P tion tns Wi la s fro n A m 2018 th EBRI/I cc Tw ou a CI nt a o Pa nd or rti B c a i2018b pFe la antn -w Dir ce e e.r cs L t e For Y d e Ret ea ss to r ire s of m ta T eha l n t re Pl Te n $1 atir nnur Dat eme 0,0 ae Col n ................................ 00 lt eca ti, os nb s Pro e yt s jP e ca ( t.inc rticlud ipaing nt A tho ges ................................ e a nd in 40 Te 1( nur k) e p la ................................ ns) thro....................... ugh the first .... 40 19 years S w No o o u te rk r:c in e T sh g :e at B te lo n c o uur rm e re b ve ant rrig a ,b em lB e apl irs co g la e y y n er s e r,G a an llly o b y d e aa tlhu r I s nv s w eo s m rtko iay nrg s ,o aFr tv cu er an rs rke t n at R t u e es m y sp ea e lo lly rs e C r,o o m afn p d pa a n th rt y u,ic s aip m na d at y S io otva e n rn st in da a ttr ehe d y & e 40 a P rs o 1(k o or f ') s ppl .aran ticip .ation in t he 401(k) plan. asset allocation also va invres iets w mentit pro h p ducla t prim n size arily inv (Fi esg ted uin re the 25 sec , urit top y indic pa atne ed.l), but much of the variation can be explained by out inv stes anding ted in the a sg eca urit ins y indic t the ated. ir 401(k) plan accounts, slightly up from 18 percent at year-end 2015. Loans participaSo nt Suou s in rce r: cT e: at bT he uab latiir ul on ati ssi fro on xm tsie EBRI/I frs w om CI the ith up Pa E rti B cRI/ICI ip at no t-Dir t 40 w ec1(k o tedy ) Ret P earti a irerm s of ce ipa nt nt Plt a -e Di n nur Dat rec ated e Col w lReti eca tios $ rnem Pro 36 en jec t P ,33 t. lan9 Data , com Col plec artie on d P w roj itec h t.$287,533 for participants in B Unit riefe, dno. Stsu a32 tb ec s, M 4 (D 42 aEBRI Is teg a eor rcceh 201 ie m su s: b e e Bri tra7 )r e. . g f A ie W s re v t- a ad g sh ilia a sttingt b ee rle efun d a on, int d tw hs a eD w U C nd w .: S.ic .U. P non i.or aS. ten- tD g ta/pd a e nrp dg a T f/ er rtt ap -m dd e ee mark a r14 nt te -of b 03 Oa flfL .p a ic a nc ed b . fo Ie Sa rd S , nd N fun B : ur 0w 8d e 8 w s. a 7w ? u o 1 .e 37 f L b X r/i.or a 90 b 0 or g 8/pd 8 St 7 ?a 1 f/ 3 tb is 7r X tie ic /9fs s. A 0 p $ d .5v f/ 0a + E ila .B 50RI b le _I aB t _12a- tSo he Source: urc dise: trib T ut Ta abulat io bul n o at io fi ns on 40 s 1 f(k ro fr) om m pl EB an EB R ac R I/c IIC /o IC Iun P I P art t art ba icila ipant cinc pant es -D - tD irec oi req etct ed ui ed tR ieR et s.et irem irem ent ent P P lan lan Dat Dat a C a o Cllec ollect tioin on P P roroj jec ect t. . p S ho a erticip c us tion eho a401( ld nt sc Cur o k om ntrib )v p.e o n Th y en tution re s e s dla oults w nost w a w d fro d e a nt ts om 1 2 0i0 nto 0 fal pa el rmo ce 2017 enff t ng e bec ca t r th uo e sefle n e o f590 J c ra oting u nu ndip n a gla ry ho . n 1, us s s e 1980, ur ho vld eys e ’ bd s ut .e ntim De it w loitte e ant s no to Con t wun a srd ulti til a No ng nd vL e cLmb o Pnf 20 e idr17b e 1981 nce re in p tha o 401( rts t p tha ro k) pp t ola th se ne d s , a re s ve e ge rula a H gtio o eld ns en et equity funds. Recently hired 401(k) participants also tend not to hold a high concentration of their account balances in Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. qua Arte sse r to A f lloc 2018, ation se Ne oa t e Inve nd : CoP m satme pro tn ic ent ip nta sComp nt ma A y g na o eny t ad Ins d totit 10 ut 0 e p e 2018. rcent bFo ecr auas e d is ofc rus ous nion ding o . f trends between defined benefit (DB) and 21 30 years of tenure (Figure 33). Source: Tabulations from EBRI/ICI Participant-Directed R 26 etirement Plan Data Collection Project. Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. differences in t Sourche e: T abulat inveio st ns m fe ron mt EB op Rt I/ions ICI Part offe icipant re -D direc by ted pR la etn sp irement onsor Plan D s. Fo ata Cor llec exa tion m Pp role jec , tt .he percentage of plan assets invested in their sixtie Sos w © urc2 e: it 0 T h mo 1 ab 8ul , at Er io m ens plo tha froy n 30 ye mee EB B Renef I/ICa I r Ps of it ar tResea iciptan enur t-D rc ire eh In c( ted Fi g s Rt u et it rire e ute m 1en 3) ?E t .Pdu la n ca Dat tio a C n olle and ctio n Resea Projecrc t. h Fund. All rights reserved. www.bls.gov/ncs/ebs/benefits/2017/e 43bbl0061.pdf nu 20 al. mb 08 2018. .p er do f) f fu Sond urcs es o : ff Tabulat ered io bns y th froe m 160 EBRI401( /ICI Part k)ic a ipant nd -D 403( irectb ed ) R pet lairem n sp ent ons Plan ors D at surv a Coellec yetd io n wP aro s jec 19t and in 2 U017. .S. Depart Brig mhtS ent o cfo Labo pe a r.nd Investment Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. company stock (Figures 42 and 43). Fi Fig gur ure e 15 41, , 4 Rec 01( entl k) P ylan Hir Acc ed 4o 0u 1(k nt )Bal Parti an cces ipant Great s Tend to B er Than e $ Les 10s 0 Li ,00 kel 0, yb to Hol y Partd Com icipantpan Age y S and tocTe k ................................ nure .......................... ...... 40 19 e e e e A 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 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 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 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 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 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 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. 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. 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 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 o o o oe 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 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 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 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 g g g g a rIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIc s s s s s s s s s s s s s s s s s s s s s s s s s s s s s 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 s s s s s s s s s s s s s s s s s s s s s s s s s s s s s 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 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 u u u re 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 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 e e e e ep 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 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 B B B B B or 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 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 r r r rrief 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 ief ief ief ief ief ief ief ief ief ief ief ief ief ief 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e e e e I 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 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 r r r r rE 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 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 1 1 1 1 1 d0 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 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 0 0 0 0 u,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,c 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 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 2 2 2 2 2 a0 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 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 0 0 0 0 tion 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 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 1 1 1 1 18 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 a • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 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 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 N N N N N N do 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 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 o o R ....................................................... e 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 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 4 4 4 4 4s 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5e 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8a rch Fund © 2018 Employee Benefit Research Institute 32 48 50 44 14 29 56 28 37 21 25 52 15 51 33 24 16 11 12 53 19 26 13 55 40 23 45 18 47 34 36 35 10 42 39 20 49 38 17 54 46 27 30 41 22 43 31 3 6 9 7 2 8 5 4 Figure 40 Figure 33 Figure 23 Figure 39 Average Asset Allocation of 401(k) Plan Accounts, by Participant Age Among $3,902 Asset Allocation Distribution of 401(k) Participant Account Balance to Balanced Funds, by Tenure Average Asset Allocation of 401(k) Plan Accounts, by Participant Age and Investment Options Asset Allocation Distribution of 401(k) Plan Account Balance to Figure 36 a a Recently F iH gu ir re e d 2 4 401(ka, ) bPl 10. a3% n Participants 13.5% 37% a Percentage of account balances, 2016 Percentage of Participants, 2016 Dec-07 BalanceM da F ny u n Re dcs e nt Alm y o Hin re g d R 40 e 1c (ke ) n PF ltl aiy n g H P ua re ir rte i c2 d ipa 9 Pa nts r ti Hc olid pa Ta nrts ge,t -b Dy a te Pa Fu rti nd cis pant Age $4,400 b 42% Average Asset Allocation of 401(k) Plan Accounts, by Participant Salary and Inves c tment Options Percentage of account balances, 1998 and 2016 Equity Target-Date Non-Target-Date Bond Money GICs /Stable- Company Percentage of recently hired participants, 2006-2016 a,b Percentage of Account Balance Invested in Balanced Funds a 39% Average Ass Pe ert ce A nltla o gc ea oti f o Re nc e fo bntr ly 4 H 0 ir1 e(k d P ) aPl rtic ain p10. a Pa n 3% ts,rti c 2i0 p 1a 6nts With12. o9% ut Jun-08 Fund P sercenF ta ug nd es of accBa ouln at n ce ba dla Fn uc ne ds s, 20 F1 u6 nds Funds Value Funds Stock Figure 34 44% Balanced Funds Tenure (years) Zero 1–10% 11–20% 21–30% 31–40% $3,824 41–50% 51–60% 61–70% 71–80% 81–90% 91–100% Investment Options, All Ages 43% Asset Allocation Distribution of 401(k) Participant Account Balance to Equity Fund Balances, by Participant Age or Tenu dre Percentage of AccouN no t n B -a Tla a rn gc ete - Invested in Balanced Funds Equity Target-date Non-Target-date Bond M D oe n ce -0 y8 GICs /Stable- Company 0–2 29.Eq 5% uity, bond, 1 m.9 o% ney, and/or 1.7% 1.7% Holdin 1g .2 B % alanced Fu 1n .3 d% s 1.6% 1.0% 1.2% 1.0% 58.0% 11.1% 11.6% b Company Stock in 40 c 1(k) Plans With Company Stock, by Participant Age d balanced funds Equity 47.2% T2 a4 rg .3 e% t-date date ba 7l.a 4n % - Bon1 d0.7% 4.M 6o % ney GICs and Other Company Age Group Zer S o alary 1–10% 11–20% Funds 21–30% Funds 31–40% Balanced Fu41–50% nds Funds51–60% a Funds61–70% Value Fun71–80% ds Stock81–90% 91–100% $3,659 >2–5 31.5% 3.0% 2.3% 2.3% 1.7% 1.7% 1.8% 1.3% 1.5% 1.4% 51.4% a,b Age Group 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Percentage of account balances, 2016 11% Percentage of Participants, 2016 Equity, bond, money, and/or d c Jun-09 Age Funds Total funds ced funds Funds Funds Stable-Value Funds Stock Plans Without Company Stock, GICs, or Other Stable-Value Funds 20s 27.7% 1.5% 1.3% 1.2% 1.0% 1.1% 1.6% 0.9% 1.2% 1.0% 61.6% >5–10 36.3% 4.3% 3.4% 3.1% 2.2% 2.0% 2.0% 1.6% 1.7% 1.9% 41.6% c Percentage of Account Balance Invested in 8. 3% Company Stock 10% 20s 48.5% 51.1% 63.6% 64.1% 69.6% 72.0% 70.8% 67.6%8.4% 68.1% 72.7% 72.3% balanced funds; and GICs $20,000–$40,000 46.1% 28.0% 6.5% 9.5% 7.1% c Group 1998 2016 1998 2016 2016 2016 1998 2016 1998 2016 1998 2016 1998 2016 $3,700 8% >1030s –20 29.4 04 % .3 A % ge Grou1 p.9% 7.0% Zero 1.71–10% % 5.2% 11–20% 1.6% 4.4% 21–30% 1.3% 2.9 31–40% % 1.3 41–50% % 2.4% 51–60% 1.8% 2.0%61–70% 1.1% 1.71–80% 6% 1.81–90% 3% 1.8% 91–100% 1.1% 2.3% 57.9 2% 6.1% Target-Date Non-Target-Date Bond Money GICs /Stable-Dec-09Company 30s 47.9% 54.2% 59.6% 61.2% 63.0% 68.1% 69.5% 67.8% 67.5% 69.9% 71.0% and/or other stable-value funds 44.5% 22.0% 6.1% 7.4% 1.6% 11.7% >$40,000–$60,000 42.1% 29.4% 7.4% 10.0% 6.5% 20s 66.9% 29.0% 7.4% 58.2% 49.3% 8.9% 5.1% 4.8% 4.0% 0.9% 3.7% 0.9% 10.5% 2.8% 20s b 75.6% 4.9% 3.9% 3.3% 2.0% 1.6% 1.4% 0.7% 0.5% 8% 0.3% 5.8% Equity, bond, money, and/or >20–30 49.6% 8.7% 5.9% 4.9% 3.2% 2.7% 2.2% 1.9% 2.0% 2.0% 16.8% 40s 30.2% 2.2% 2.0% 1.9% 1.4% 1.4% 1.7% 1.0% 1.2% 1.0% 56.0% 40s >$60,04 06 0.– 6$ % 80,000 52.8% 44.7 5% 7.8% 5 29 7..3 9% % 59.9% 6.9% 65.0% 9.7 8.% 4% 67.2% 66 .2 5% .6% 7.5% 67.6% 68.3% 69.8% Funds Balanced Funds Funds Funds Value Funds Stock Other Unknow n b30s alanced fund6 s2 ; .a 8% nd com1 p1 a .3 n% y 3 68 .9.6 %% 42 .7 1 % .9% 3.0% 3.8% 2.2% 17 .9 .5 %% 1 4..2 9 % % 0.8% 7% 0.6% 17.8% 4.6% 30s 67.8% 35.7% 8.0% 51.8% 44.5% 7.3% 5.1% 4.7% J4 u.n 1-% 10 1.2% 3.2% 1.1% 9.4% 1.9% $3,832 >30 54.> 5$ % 80,000–$108 0.,8 0% 00 4 56 .6 .8 % % 4 2.6 5.% 5% 3.05 % .9% 2.5% 9.6% 1.9% 5.7% 1.4% 1.3% 1.3% 15.1% 50s 3 50s 1.2% 47.2 8% .2% 53.4% 2.0% 58.0% 2.0% 58.7% 1.5 39 % .1% 61 4..5 2% % 66.7 1% .6% 64.5%0.9% 65.6% 1.0% 67.0% 06 .9 8% .8% 55.4% Equity, bond, money, and/or 7% Age Group 40s 56.7% 13.6% 8.2% 5.5% 3.6% 2.7% 2.1% 1.4% 1.0% 0.8% 4.6% >$100,000 40s 64.5% 37.5 9 0% .5% 9.7% 42 50 .7 .8 % % 37.7% 5.3%8.0% 5 1.0 9.% 6% 6.5% 55 .4 .1 % % 1.7% 4.4% 1.3% 8.0% 1.7% All 60s35.6% 45.5% 4.5%50.1% 3.45 % 3.9% 3 5.3 0.% 6% 552 .2 .1 % % 60.7% 1.9% 63.9% 1.8%60.6% 1.3 6% 3.9% 1 6. 35 .6 % % 66.1 9.% 6% 43.3% balanced funds, company stock; 8.2% 6.4% 60s 33.1% 2.3% 1.7% 1.9% 1.2% 1.4% 1.4% 0.7% 0.8% 0.8% 54.8% 50s 54.5% 14.7% 8.3% 5.5% 3.7% 2.7% 2.2% De1 c.-5 1% 0 1.1% 0.8% 5.0% 20s A7 ll3.9% 11.0% 47.2% 4 2.4 0 .3 % % 71 .4.% 0% 10.7% 1.0% 4.6% 3.6% 3.9% 1.6% 50s 60.5% 36.9% 11.3% 41.5% 33.7% 7.8% 6.6% 9.7% 5.9% 2.7% 6.7% 2.1% 6.5% 1.5% c 15% $3,893 All and 4 G 7 IC .6s % and/or 52 o.t7 h% er stable 5-9.9% 60.9% 63.0% 67.5% 68.6% 66.3% 67.2% 69.6% 70.5% 60s 56.7% 14.0% 7.5% 5.0% 3.3% 2.5% 2.0% 1.4% 1.0% 0.8% 5.7% All 29.5% 1.9% 1.7% 1.7% 1.2% 1.3% 1.6% 1.0% c 1.2% 1.0% 58.0% d 30s Pla7 ns 1 .W 2i% th GICs and/or9 O .9 th % er Stable-ValuP e2 e F r.c 6 ue % nn dts age of Acco2 u.n 1t% Balance Inves2 te.d 5 % in Target-Date 4 F.u 9 n% ds 6.0% 0.7% 60s 50.0% 31.2% 12.1% 36.1% 29.3% 6.8% 8.7% 15.6% 7.8% 4.0% 13.3% 2 15% .5% 5.7% 1.0% va Allu l e funds 60.3% 12.1% 4 70 .2.7 %% 41 .9 5 % .6% 3.2% 6.2% 2.4% 26 .0 .3 %% Jun 1 1- ..3 1 6 % 1% 0.91 %1.3% 0.7% 12.6% 5.0% a 5.7% 5.5% $20,000–$40,000 37.6% 32.5%Holding Ta6 r.g 8% et-Date Fund6s .1% 1.3% 11.3% c a c Tenure (y 40s ears) Zer6 o1.2% 1–10% 11.511–20% % 21–30% 4.0% 31–40% 3.7% 41–50% 4.7% 51–60% 6 61–70% .6% 71–80% 7.4% 81–90%0.8%91–100% The analysis inA clu lldes t6 he 4 . 8. 84 % millio3 n 5 pa .3 rt% icipant9 s .in 1 pl % ans w4 it5 h . c3 o% mpany s3 to7 ck .5 at % year-end 207 16. .8% 5.7% 8.2% 4.9% 2.3% 4.6% 1.6% 8.6% 1.7% Plans Without Company Stock, and GICs, and/or Other Stable-Value Funds 18% Percentage of Acco $3,661 unt Balance Invested in Target-Date Funds >$40,000–$60,000 38.9% 28.6% 6.8% 6.4% 1.7% 12.3% b a Age Group 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Age R G ow ro pe u rc p entages may not add up to 100 percent because of rounding. Dec-11 21% 0–2 40.8% The 1 an .0 al% ysis is based 1 on .0 s% amples of 1.2 1 m.illio 2% n recently hire 0d .9 pa % rticipants (tho 1. s0 e % with two or few 1er .4 % years of tenure) 0. in 8% 1998 and 5.1 m1 illio .0% n recently hire0 d .pa 9% rticipants 49.9% 50s 50.4% 11.7% 6.0% 5.5% 9.2% 8.1% 8.1% 0.9% >$60,000–$80,000 41.3% 25.0% 7.1% 6.6% 1.8% 11.4% Age Group Zero 1–10% 11–20% 21–30% 31–40% 41–50% 51–60% 61–70% 71–80% 81–90% 91–100% 4.8% 4.5% 20s 29.2% 49.8% 9.8% 4.8% 1.5% in 2016. 23% 20s Source:2 T 9ab .4 ul % ations from 3 2 EB .4 R% I/ICI Particip 4an 7.t5 -D % irected Ret5 ire 0m .5 en % t Plan Data 5C 5o .3 lle % ction Proje5 c9 t..3% 59.4% 58.6% 60.6% 64.0% 62.3% >2–5 43.2% 1.8% 1.5% 1.6% 1.3% 1.3% 1.5% 1.1% 1.3% 1.3% 44.0% 60s >4 $3 80 .9 ,0% 00–$100,000 10.1% 43.0% 7 2.3 7 .6 % % 67 .5.% 2% 6.7% 14.7% 1.8% 6.8% 11.1% 8.5% 1.0% $4,089 b 30s 43.4% 36.5% 6.9% 6.4% 2.4% 20s 37.7% 0.8% 0.8% 0.9% 0.8% 0.9% 1.4% 0.8% 1.0% 0.26% 9% 53.9% M inor investment options are not shown; therefore, row percentages do not add to 100 percent. Percentages are dollar-weighted averages. Jun-12 30s >$100,2 08 0.0 5% 35.5% 51.3 4% 4.3% 4 18 6..3 9% % 49.8% 4.5% 55.9% 6.8% 58.7% 15 .4 8% .2% 51 92 .7 .0 % % 61.0% 60.8% >5–10 d 48.3% 2.8% 2.2% 2.2% 1.7% 1.5% 1.6% 1.3% 1.5% 1.7% 35.2% 40s c 51.7% 24.7% 7.2% 8.2% 3.1% 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 All 54.5% 11.0% 5.5% 5.0% 8.4% 6.9% 7.8% 0.9% 30s 39.2% 1.1% 1.1% 1.2% 1.0% 1.1% 3.9% 4. 10% .6% 1.0% 1.2% 1.0% 50.6% All 44.5% 22.0% 6.1% 7.4% 1.6% 11.7% 40s 50s 27.4% 34.6% 42.6% 49.4% 46.6% 21.8% 47.2% 5 72 .5 .8 % % 55.1 8% 1.1% 54 4..8 5% % 57.7% 57.8% 57.5% >10–20 57.6% 4.9% 3.3% 2.7% 1.9% $4,167 1.6% 1.5% 1.2% 1.5% 2.1% 21.7% date of the fund, which is usually included in the fund’s name. Dec-12 8% 40s 42.5 P % lan60s s With 1 C.o 2m %pany Stoc 1k.2% 41 2..4 4% % 21.8 1% .0% 7 1..51 % % 1 14 .5 .7% % 7.0% 0.8% 1.0% 0.8% 47.3% Tenure (years) d 50s 28.1% 35.3% 42.7% 46.2% 46.8% 52.4% 55.5% 53.6% 57.0% 55.9% 55.7% GICs are guaranteed investment contracts. >20–30 65.1% 5.7% 3.4% 2.7% 2.0% 1.8% 1.6% 1.4% 1.6% 1.6% 13.1% c 12% Pla $n 2s 0 ,W 00i0 th – $ G 4I0 C,s 00a 0nd/or Other3 Sta 3.5% ble-Value F1 u8 n.d 1s % 3.7% 8.3% 5.4% 26.5% 3.8% 4.3% 50s 0–2 44.3%69.5% 1.2% 121 .8 .1 % % 1.3% 5.3% 1.0% 2.7% 1.1% 1.6 1% .3% 0.1 7.% 6% 0.8%5.8% 0.7% 0.6% 46.4% 60s 26.1% 32.3% 39.1% 41.8% 43.1% 49.0% 51.5% 48.9% 55.4% 51.0% 54.0% Note: Funds include mutual funds, bank collective trusts, life insurance separate accounts, and any po Juo nle -1d 3investment product primarily invested in the security >30 69.4% 5.8% 3.2% 2.6% 1.9% 1.5% 1.2% 0.9% 12% 0.9% 1.0% 11.5% $3,889 >$20s 40,000–$60,000 32.1% 30.6% 24.3% 46.5% 3.2% 6.4% 7.1% 6.2% 6.60 % .5% 3.0% 22.7% indicated. Figure 35 60s >2–5 4 A6 ll.0%69.3% 28.1 3% .2% 34.1 3% 21 .6 .0 % % 44.4% 1.2% 4 4.7 1 .9 % % 0.4 89 % .8%2.7%51 5..0 2% % 52 7..4 3 1% % .1% 56.3%0.2 6.% 7% 58.9% 0.6% 595 .7.% 5% 05 .6 9% .2% 0.7% 45.9% 30s 42.3% 33.1% 5.7% 5.0% 0.9% 5.1% 12% All 47.> 8$ % 60,000–$803 ,0 .0 0% 0 3 22 .1 .7 % % 2 2.6 0.% 3% 1.53 % .5% 1.4% 6.2% 1.4% 6.5% 1.1% 1.3% 19.9% 1.4% 37.2% a Dec-13 b 4.1% 3.9% 40s Source: Tabulations from EBRI/ICI4 P9 ar .8 tic % ipant-Dire 22 ct.ed 6% Retirement Pla5 n .7 D% ata Collection 6 P.ro 0% ject. 1.4% 7.2% >$80,000–$100,000 Man 36 y . 5R %ecently 2 H 3i.r 8e %d 401(k) P 3l .5 a% n Participa 6n .9ts % Hold B 6a .4l% anced Funds 18.9% All>5–10 40.8%63.6% 1.0% 111 .8 .0 % % 1.2% 4.5% 0.9% 3.6% 1.0% 4.2 1% .4% 0.4 8.% 6% 1 9% .0%6.9% 0.9% 0.7% 49.9% Holding Non-Target-Date Funds $3,972 50s 46.1% 19.7% 6.0% 8.0% 1.8% 12.0% 8% Percentage of Account Balance Invesated in Non-Target-Date Ba blanced Funds >$100,000 43.0% 18.7% 2.8% 8.7% 5.7% 16.9% >10–20Age Group 51.4% 2006 2007 11 P.e 1r% centa 2008 ge of rece5 n 2009 .t3 ly% hired 402010 1(k) p5 a.r7 ti% cip2011 ants holdin2012 8 g. 8 ba % lanced 2013 funds,8 .10 9% 92014 8–2016 2015 8.7% 2016 0.9% 60s 37.9% 19.1% 6.6% 9.1% Jun 1-.1 74% 18.7% All 38.6% 21.9% 3.8% 7.5% 4.9% 17.8% Percentage of Account Balance Invested in Non-Target-Date Balanced Funds Tenure ( Ay ge ea rs) Zero 1–10% 11–20% 21–30% 31–40% 41–50% 4.1% 5. 51–60% 1% 61–70% 71–80% 81–90% 91–100% 20s 22.5% 21.2% 18.5% 16.7% 15.8% 14.0% 12.8% 10.1% 8.6% 9.7% 10.9% >20–30 Pla4 ns 0 . W 4% ith Company Sto 11 ck .9% 6.2% 6.9% 11.7% 10.8% 10.9% 1.2% d $3,619 Plans With Company Stock and GICs and/or Other Stable-Value Funds Group 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 201211% 2013 2014 2015 2016 0–2 Age Group Ze8 r7 o.6% 1–10% 1.4% 11–20% 1.1% 21–30% 0.7% 31–40% 0.4% 41–50% 0.3% 51–60% 0.2% 61–70% 0.1% 71–80% 0.2% 81–90% 0.1% 91–100% 7.9% 20s 23.3% 47.4% 7.3% 5.5% Dec 1-.1 14 % 12.9% 30s 22.5% 21.9% 18.2% 16.2% 15.1% 14.0% 12.6% 11.2% 11.9% 10.4% 11.4% >30 32.1% 9.4% 8.0% 7.7% 19.0% 12.0% 10.4% 1.3% $20,000–$40,000 35.1% 18.0% 10.6% 5.3% 1.7% 10.8% 15% 9.8% 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% 72.3% 30s 36.2% 34.0% 4.1% 4.6% 2.4% 15.0% >2–20s 5 89.8 16 % .5% 1.1% 2.1% 0.8% 1.5% 0.5% 1.0% 0.3% 0.5% 0.23. % 0 4% .4% 4.0% 0.2% 0.3% 0.1% 0.2% 0.2% 0.2% 0.1% 0.2% 7.4% 7.1% 40s 21.3% 21.1% 17.7% 15.8% 14.4% 13.9% 13.3% 12.4% 14.8% 12.0% 13.6% d Figure 41 >$40,000–$60,000 35.8% 20.0% $3,785 7.3% 5.8% 1.7% 11.6% 14.1% 10% 40s 43.1% 22.4% 3.2% 6.1% 3.3% 17.3% A 30s ll 29.0% 31.0 5% 4.5% 28.3% 26.5%113.3 0.% 1% 36.2% 39 5.. 85 %% 42.8% 47.9 5 % .0% 54.2% 59.6% 8.46 % 1.2% 63.0% 6.69 8% .1% 69.5% 7 67..8 8% % 67.5% 690 .9.% 9% 71.0% Jun-15 >5–10 85.5% 2.8% 1.9% 1.4% 0.7% 0.5% 0.4% 0.3% 0.2% 0.2% 6.0% 30s 88.6% 1.5% 1.0% 0.7% 0.3% 0.3% 0.2% 0.1% 0.1% 0.1% 7.1% 50s >$60,02 01 0.– 4$ % 80,000 20.9% 36.1 1% 7.6% 1 15 9..4 4% % 13.8% 6.2% 13.5% 5.7% 13.0% 21 .2 2% .4% 11 31 .3 .1 % % 12.41 % 4.9% 14.3% 50s Recently Hired 4013 (k 9.) 0% Partic 1i8p .4a % nts Tend4 to .1% Be Less 8 .2 L % ikely 5to .1% Hold Company Sto 18c .7k % a 11% 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% 69.8% Row percentages may not add to 1 00 percent because of rounding. Percentages are dollar-weighted averages. >$80,000–$100,000 37.6% 18.8% 5.4% 5.6% 2.3% 11.5% 14.4% >10–20 83.4% 4.2% 3.0% 2.2% 1.0% 0.7% 5.6%0.5% 0.3% 0.3% 0.3% 4.0% 60s 33.7% 18.8% 3.72. % 8% 10.2% 8.9% 18.6% 40s 8 60s 6.4% 19.1 8% .7% 20.1% 1.3% 16.7% 0.8% 14.0% 0.1 43 % .2% 10 3..4 1% % 13.9 0% .3% 13.0%0.1% 13.1% 7% 0.1% 13.5% 01 .1 4% .1% 8.4% b $3,858 Dec-15 50s 30.9% 34.9% 3P 2.e 1r % cen2 ta 9.g 2% e of 3 r3 e.c 9% ently 3 5h .5i% red p 40 a.r 3t% icipa 4n 3.t3s % offe 4r 7e .8d % and 5 3h .4o % ldin5 g8 .c 0o %mp5 a 8n .7 y% sto5 c9k .1,% by p 64 a.r 2t% icipa 66 n.t7 % age,61 49 .59 % 8–260 51 .66 % 67.0% 68.8% c 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 >$100,000 41.7% 16.0% 4.9% 5.8% 2.6% 10.7% 12.2% Plans With Company Stock and GICs, and/or Other Stable-Value Funds 6% >20–30 81.3% 5.1% 3.5% 2.6% 1.3% 1.0% 0.7% 0.4% 0.3% 0.3% 3.5% All 21.9% 21.3% 18.0% 16.1% 14.8% 13.9% 13.0% 11.4% 11.8% 11.3% 12.4% 50s 85.7% 1.6% 1.3% 1.0% 0.5% 0.4% 0.3% 0.1% 0.2% 0.1% 8.8% 60s 28.4% 34.9% 33.2% 29.1% 30.2% 30.7% 36.3% 41.6% 45.5% 50.1% 53.9% 53.6% 55.2% 60.7% 63.9% 60.6% 63.9% 63.6% 66.9% All 40.7% 15.6% 6.2% 6.3% 1.6% 11.3% 12.6% the fun Agd, e w Ghi roc uh pis 1998 usually in 1999 cluded in 2000 the fund’ 2001 s name. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20s 30.7% 44.7% 5.1% 3.8% 0.4% 2.6% 9.1% a >30 82.1% 5.0% 3.3% 2.4% 1.3% 0.9% 0.6% Jun-16 0.4% 0.3% 0.3% 3.3% 6.4% A target a -date fund typically rebalances its portfolio to become less focused on growth and more fo 3.c7% used on income as it approaches and passes the target date of the fund, c 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% 70.5% 60s 85.9M % inor investm 1 ent .5 % options are no1 t .s1 ho % wn; therefore, 1 ro .1 w% percentages do 0. 5 no % t add $3,973 to 100 perc 0.5 ent % . Percentages 0 .are 4% dollar-weighed 0.av 2% erages. 0.2% 0.2% 8.6% 30s 39.7% 28.3% 6.2% 4.3% 0.9% 4.7% 11.1% GICs ar 20s e guaran6 t0 ee .8d % inves 61t.m 1% ent c 6o 0.nt 5% racts 5.8.1% 53.9% 49.6% 49.8% 45.4% 40.0% 35.4% 32.9% 32.3% 30.3% 26.2% 23.0% 27.9% 26.9% 24.4% 23.2% 4% a which is usually included in the fund’s name. b All The analysis includes 8 40 5 Salary .1 5 (k% ) pa inf rto icrm ipan attio s w n 2 it is h . 9 av tw % o ailable or few fer or ya ea srs ubs 2 . o0 fet % ten our f part e in ic the ipant yea 1 s r . in in 5di % the catEB ed.RI/ICI dat 0.abas 7%e 401(k) databas 0.5% e. 0.4% 0.2% 0.2% 0.2% 5.8% 40s 45.4% 17.8% 6.4% 5.1% 1.3% 6.6% 12.0% d All 30s 876 .6 1% .9% 62.31 % .4% 61.6% 61 0..1 0% % 57.2% 0.7 53 % .3% 52.30 % .4%47.6% 40 3..3 6% % 40.4%0.2 3% 7.4% 36.2 0% .1%33.6% 3 00 .2 .0% % 26.4%0.1 3% 0.7% 29.2 7% .9%27.4% 24.0% The analysis includes the 1 5.4 million participants with no equity funds at year-end 201 6. 7% a c Dec-16 b Note: The analysis includes the 2.8 million recently hired participants (those with two or fewer years of tenure) in 2006, the 3.8 million recently hired participants in 2007, the 4.0 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 The analysis includes the 27.1 m50s illion 401(k) plan participants in the year-end 41.201 5% 6 EBRI/1 IC 3I .401 0%(k) database 401 6.3 k% (k) database.6.7% 1.7% 11.6% 13.0% Balanced funds include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in a mix of equities and fixed-income securities. a 6.1% 3.3% The analysis includes the 5.1 million recently hired participants (those with two or fewer years $4,239 of tenure) in 2016. Note: Funds m in illio clu n rec deent mly ut hired ual fpart unds icipant , ba snk in 2008, colle the ctiv 3.1 e m tru illiosn ts rec , lif ent e ly in hired suran part cic e ipant seps ar in at 2009, e ac the co3. un 2 m tsillio , an n d rec an ent yly po hired ole part d in icv ipant ests m in en 201 t 0, pr to he du 3.c 4 tm 4% pr illio im n ar recily ent in lyv hired ested part in ic ipant the s s ecurity 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% 23.4% b fund, which is usually included in the fund’s name. 60s 34.8% 12.3% 5.8% 7.7% 2.1% 18.2% 12.9% Row percentages may not add to 100 percent because of rounding. Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. b d in 2011, the 3.6 million recently hired participants in 2012, the 4.4 million recently hired participants in 2013, the 4.1 million recently hired participants in 4% 2014, the 4.8 million recently hired Row percentages may a GI no Cs t are add guarant to 100 eed perc invent est m bec entaus cont e rac oft s ro . unding. indicated. The tenure variable is generally years working at current employer, and thus may overstate years of pa Junrt -1 ic 7ipation in the 401 (k) plan. 50s 57.6% 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% 22.8% c M inor investment options are not shown; therefore, row percentages will not add to 100 percent. Percentages are dollar-weighted averages. 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 usually included in the participants in 2015, and the 5.1 million recently hired participants in 2016. c 4% b Note: Funds include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security indicated. 6.3% A target-date fund typic A ally target rebalanc -date fund es typic its ally po rebalanc rtfolioes to its bec porto fom lioe to les bec s o fo mc e us lesed s foo cus n gro ed ow n gro th and wth and mo mre ore fo fo 2. cc6% us used ed oo n n inc inc om o e m ase itas appro it appro aches and aches pass and es the pas target ses dat the e oft arget the fund, dat whic e o hf the fund, which is 60s 54.1% 55.5% 53.6% 55.7% 51.0% 49.5% 47.8% 43.9% $4,359 40.4% 38.4% 38.7% 40.5% 36.8% 30.8% 26.7% 30.0% 27.6% 23.3% 21.3% fund’s name. Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. Funds include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the 4% security indicated. Dec-17 usually included in the f So und’ is us urc ually s e: nam T inc abulat luded e. ioin ns the frofund’ m EB s R nam I/IC e. I Participant-Directed Retirement Plan Data Collection Project. Note: Funds inc Alude ll mutual 60f.unds 5% , bank 61.0 c% ollec6 tiv 0.e 0t% rusts5 , lif 8.e 7ins % uranc 55.e 3% separat 51e .6 ac %count 51s .0 , and % any 46 po .3% oled 4 inv 2.es 0% tment 3 8 pro .7% duct 3 prim 6.2arily % inv 35 es .5 t% ed in t3 he 3.0 s% ecurit2 y 9 indic .3%ated. 2 5 T.he 7% tenure 29.v9 ariable % 2is 8. 3% 25.7% 23.2% c Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. 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. 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. 2.1% 5.2% generally years working at current employer, and thus may overstate years of participation in the 401(k) plan. $4,279 Note: Funds include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security indicated. Source: So Tabulat urce: Tio ab ns ulat fro ions m fEB rom R EB I/IC RI IP /IC art I Pic aripant ticipan -D t-D irec iretced tedR Ret etirem iremen ent t P Pla lan n DD atat a C a o C lle oc llec tion tio Pn roP jero ct.ject. Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project.