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EBRI

Key Findings:

  • 401(k) plans draw in many young retirement savers and new hires. At year-end 2020, 38 percent of 401(k) plan participants were in their twenties or thirties, and 24 percent were in their forties. Forty-three percent of 401(k) plan participants had five or fewer years of tenure, including nearly one-fifth who were recent hires (two or fewer years of tenure).
  • Younger 401(k) plan participants tend to be invested more in equities than older 401(k) plan participants. On average, at year-end 2020, 69 percent of 401(k) participants’ assets were invested in equity securities through equity funds, the equity portion of balanced funds, and company stock. Younger participants, as a group, had more than 80 percent of their 401(k) plan assets invested in equities, compared with 56 percent of 401(k) plan assets among participants in their sixties.
  • Ownership of investments in equities is widespread among 401(k) plan participants. Overall, 94 percent of 401(k) participants had at least some investment in equities at year-end 2020.

     More 401(k) plan participants held equities at year-end 2020 than before the financial market crisis (year-end 2007), and most had the majority of their accounts invested in equities. For example, nearly 80 percent of participants in their twenties had more than 80 percent of their 401(k) plan accounts invested in equities at year-end 2020, up from less than half of participants in their twenties at year-end 2007.

  • Target date funds continue to be an often-used investment option among 401(k) plan participants. At year-end 2020, 86 percent of 401(k) plans, covering 87 percent of 401(k) plan participants, included target date funds in their investment lineup. Target date funds were 31 percent of the assets in the EBRI/ICI 401(k) database, and 59 percent of 401(k) participants in the database held target date funds. Also known as lifecycle funds, these funds are designed to offer a diversified portfolio that automatically rebalances to be more focused on income over time.
  • 401(k) plan loans are widely available but rarely taken. At year-end 2020, 84 percent of 401(k) plan participants were in plans allowing loans, but only 16 percent of 401(k) participants who were eligible for loans had loans outstanding against their 401(k) plan accounts, down from year-end 2019. Loans outstanding amounted to 8 percent of the remaining account balance, on average, at year-end 2020, the same as year-end 2019, and well below their historical average. Loan amounts, on average, increased in 2020, but remained small relative to the remaining account balance.
  • The average 401(k) plan account balance tends to increase with participant age and tenure. For example, at year-end 2020, participants in their forties with more than two to five years of tenure had an average 401(k) plan account balance of about $43,000, compared with an average 401(k) plan account balance of more than $350,000 among participants in their sixties with more than 30 years of tenure.

FF igig uru er e A 1 50 401(k) Plans' Loan Offering and Participant Use by Plan Size Figure A11 Re Owners ference hip s ................................ of Ta 4r0 ge 1(t k )D P alt ae n F A u ................................ c nd cos u V na t B rie as la wit nceh s P In ................................ ac rrte icipant ase Wi tA hg P ea a rt n ic d i................................ p Ta en nur t Ae g e and Tenu......................... re 25 H Y 40 of 4 p R P Yla la old ou ou 0 e tns n Sp 1( he 1 fe e ng ng . ( k) n, r p For k) onsor e e e a Sa P r r rnc t lan L e ic P 40 40 ra xa ipa ar e h, C 1( 1( m s ounc nt t ap oan k) k) icipant nd , let ,he P P il of J56 a lan lan Ac clow kpt A e Va ivit P P m e rs c r a a nD e e ’ rt rt t ry Varie nt he A ic e icipant icipant acc rof he . a2021 vp o i. ea runt 20 r a s tg ic . s s 01 wit e ipa 64 ) H Te , aB a t. a nt h h nd v alanc nd “s a 40 P A e n a a t Incr 1( r nua o rt c ec k icipa In ount in p )e l e P Sur ve s la a l a F s n As Te b F n s n v ie a g t is w e td g la u y in nd to Age u r set nc C e of rite o E h mor e A P nce qu 4 A , 4 (rlloc tofit Ten he it R nt e ie a highe Sha tis ure tra ion, s ha e M trn 2,500 io ,ing ore with Pa r A a ns i c tnd he caount nd Tha n a Ac c p 40 E c a c B ou n q r1( o a t uit r ic Olde lnt unt Ba a k t ipa nc )icipant ie bPa e nt la sla s, a r s, a ns S nc 40 lanc inc : nd end 1( Re , e tLhe A k) flect e toa t he ge h n low P e se ing lan A F and c e sa inancia tr202 iv m tihe te y0 p in 1 P lala n l 99 n s 9.” Sarah Holden is Senior Director of Retirement and Investor Research at the Investment Company Institute (ICI). 401(k) Plan Asset Allocation, FiAc gure c 1 ount Balances, and Loan 37 30 Average 401(k) plan account balance by participant age and tenure, 2020 401(k) Loan Balances As w ith GICs the inv DOL a ere s Th to ins e no r a Bi ura te gpe s a.:nc rtis D As “In e is a s A c e n ta g o r t Bu imp e p a bure llu C d oag t c o ny ily a e o m tion t n e p Ac p c ro o o o t to no d fs o uc 4 if mic e t0 i2 ts q o 1 018 uiti n ( tha s k e o e ) n ma s t fP s g S fo elu nd a e r a a n lnd ta ra e a te A c rg nte fo tc d e e c r t e c do ha re d a4 a u sng s 0 te e n p 1 a t e e fu rc ( c s B kific h nd ) to a P p ls a urp the ra lw a n te n a c os 401( e s A o e b s f c s a re ,c s b ke ind o turn y )d u ha S iv o nn ird id t o z Mo n B ua e ship the a o ls rning lf a in d A n inv isc th c trib se c e ta es o s C r te ution e u a a d g n na t ro e c ta ly g B up ru ps o ita a is le s rl is a ls o e .ho o n f s On v ta c e uld e r rg No the eno t v d e t lia mb fe bte e o e inc fu f r the nd 14, lud ed a P C E Te I anv c v xpe a risis c ert e ount nur ra st ricipant g ie m enc ) e e for nt e . ( Fi 60 C Cs om hic g ur pe a p er g a co: 1 ny e0) nt P I. ns la of Ov n Sp tia e tu ll p ra tonsor e ll, loa la Pn a erspe ns ss Counc e c fr tts. B om ive il e 7, no. of 40 ca1( A us m ke ) e 1, r m pic la ost a ans nd . of tE eB n the RI de d Ipss la to ue ns b e B ha rsm ie ve f, no. a a ll ( sm Fi 23 g aur ll num 0e ( Ja A12 n bua e ).r r of y). pA av rt aic ila ipa ble nt a s, t t he asset size Steven Bass is an economist a 4t0 I1 C(Ik. )C P ra aig rt iC cop ipa en latnd s R ise t p he re s De irn et c ta or R of anW ge ea o ltf h A Bg ee ne sfits Research at the Employee Brady, Peter, and Michael Bogdan. 2010. “A Look at Private-Sector Retirement Plan Income After ERISA.” Investment Endnotes ........................................................................................................................................................... 27 At P ye era cr e-ne tnd age2020 of 401 , (16 k) P p laenrs c e On ffte rof ing those Loanse b ligib y Plle an for Siz e loa , 2ns 020 had 401(k) plan loans outstanding, and loan activity varies with Activity in 2020 Younger participants were slightly more likely to hold target date funds than older participants. At year-end 2020, 59 Average and median loan balances for 401(k) participants with 401(k) P P ee rc rc ee nn ta ta gg e e o of f p pa arrttiic ciip pa an ntts s w wiitth h a ac cc co ou un ntt b ba alla an nc ce es s iin n s sp pe ec ciiffiie ed d rr aa nn gg ee ss , ,2 2 00 22 00 Figure A2 a in co ss ntra the et a c cll t. ooun 2018, cat tion of a the (cstiv e e Inte e P Mo p ea rna rrning c rtici en l tR p as a g ete nts v a e r on f.2020 ue ” acH t iS o ve e w a rv 4 e n0 v ic d 1 e e (no r, k re ) the te ple la 1 a n fo s 6 p erm fo a dr tr p ics ro a ic p dh p a de n o iti d tsse o ule a d na n re d lne d 4 gis e 0 ula 1 d c(e us k tions d ) s p to ion la n ma to ) a . simp k se e tthe s le b me y a p d nt a jus rtthe ictime ps ae nnt tc a ha is ge n no ,g 2e 0lon s 2.0 Ge gen r e re ra qlluire y, the d. s Us e ing for ww w m.ic any i.or pg la /pub ns isfil m e_pd odef/ stp . eTw r07 e-nt 01 y.p -thr dfe e a nd perw ce wnt w .e of btrhe i.or p gla /do nsc s/ hadveefa ault sse -sour ts of ce $2 /e50 br,000 i-issu or e- b le rss ief/ , 02 and 01 a ib. not pd he f. r 30 percent ComB pe ane ny fit Ins Re titsea uter c Re h I sea nstrit ch P ute e(rE spe BRI c) tiv . Thi e 16 s , Iss no. ue2 (No Briefv w em as w berr)it . tA en w vaila itb h a le ss atis w ta w nc we .ic fr i.or om g /pd thef/ Ip ns er tit 16 ut -e 02 ’s r .pe dsea f. rch and 92% A a Mor g m eong , e t40 e nur indiv 1(k e) , idua a pnd lan l 401( apca crount tic kipa ) p b la nt an p la s he nc ae rld t ic (Fi e ipa q guit ur nte ie s, t s a 10 he )t. yOf th a elloc ar-e a ose nd tion o 2 p02 af a rt0 icctipa c ha ount nt n a s in p tb y ae la a la nc r- ns e end s t offe o 20 e ring 07 quit , la ioa end s (eq nsa, lta uit he rgy e highe fun r pe drs, c st ce nt po ea m rg cp e ea nt of ny a g st es o ockf , Years of Tenure 91% loans, 1998–2020 percent of participants in their twenties and 63 percent of participants in their thirties held target dat88% e funds, compared Poterba, James, Steven F. Venti, and David A. Wise. 2007. “Ris87% e of 401(k) Plans, Lifetime Earnings, and Wealth at 41 Figure A3 Many NationalFac Comp cha tng ors Af eens s re aE tion la fB e x c R c S te Iurve /40 rta ICin I1 y4 ( re d 0 k) a 1 sttrictio ( ak P a )a nd D rt ns a icipant his t a ob to n a ric ta sk a eing s l R re ’ Ac e la ap tions ha c re ou rs dhip e s n hip n ts tBa s a d nd a islanc trib W tre iution d nd e es sC .er v 86% Althou o id ses nt S g in e h c tthe he tio F n po ro o rm v f is t5500 h ion e s4 a 0 dre a 1t( a k e,ff ) EB ecR tiv I e a n Ja dnu ICI ary 1, By Sarah Holden, ICI; Steven Bass, ICI; and Craig Copeland, EBRI ha ve plan assets between $250,001 and $1,250,000. 16 38 editorial staffs. Any views expressed in this report 84% are those of the author and should not be ascribed to the Age Group 0 to 2 >2 to 5 >5 to 10 >10 to 20 >20 to 30 >30 y a poung nd a A Othe At rg tic e ty he ipa e G er a r rou r s e nt inv -ta q es w p uit nd be le st y 2020, it v or p h o aor lue s ha ut tion o 60 fu sd tnd ahighe p nding e f b src inc a elnt ra lud loa nc co onc e f en b d no sy e fun nth n nt a– la rta d a e nc s) t tic rg ions e e s w v GICs t ad rin e ie a ete r,s w e w q b a hic uit a ide m laie h ong nc ly s. c e o a d ns O r p 23 ound fa v iun s r et tric d a o ipa ll, a f a ta he s snt p e t o ts a s in t y rtfo v e w e are rli a -re he o g e nd e oa ir f of s fixe for s2020 um 69 td ie e -p d s or , inc e 6 to ro cp me e b fif ent e rt c ie inv s e for e s (F nt ceuriti s a of te ll p igur d 40 e s a in e 1( r“w t e ic 1 kq ra 0) ipa )uiti p p . p la nt P e eut n ss in t d ” ( s a w enot e ith he h a er 82% with 57 percent of participants in their sixties (Figure A8). EBRI/ICI analysis of 401(k) plan target date fund investors November 29, 2022 • No. 576 Snapshot of Year-End 401(k) Plan Account Balances H Re Aold ppendi tire en, meSa ntr.” a x h, N : BE aE nd B R Wor R Ja Ic/IC kk ing Va 10% nD IP 4 aep r0 e he 1 r, i. ( no. k) 2001 13 Da b 09 . t “ 1 (Ma The abas Iy m )e .p C a c atm of brE idg me p, loy MA er: -Se Nale tiona ctedl B Inv ure est au mof ent E cOp onomi tions c on Resea 401( rck h. ) P Ala va nila ble estimate 2019, the nu fo mb r e ca r le of nd aa ctiv r ye e a 401( r plakns ) p , a the rticip pro ants pos to ed bre e gaula botions ut 60 d mil o n lio on t re in q20 uire 20 c . ha Thng e e es s tim for a2018 te of – the 2019. nu mb Effe er ctiv of ea c Jtiv anu e a40 ry1( 1,k ) Brady, Peter, and 20s Michael Bogdan. 20 $516 ,66. 7“A Look a $13,5t7 P 9riv Ua ntie $ v - 2e Se 1r ,8 s c6 te 5 or Retirement Plan Income After ERISA, 2015.” ICI Figures Year Average Loan Outstanding Median Loan Outstanding 60s 16 officers, trustees, or other sponsors of EBRI, Employ Fie g15% e u rB ee A ne 7fit Research Institute-Education and Research Fund In any given year, the change in a participant’s account balance in the database is the sum of three factors: w Inve p 20 gua a ar 20 y tra , ic s tme nte a ipa d a si te nt za nt a b (s he b ty a Comp lse e p ic m ld ( aFi a ll a no y jg ny or ur be it y Ins e q ya uit 6) n of titins .ie ute es, d ligib ura Y , oQua unge ow nc le en fr 40 rte 74% cro 1( rly mp om pk a ) S ra tup 13 p ny ica ipa p ro p le tic r e nt me r ipa acs t e b nta nt nt aennde s in a ry k a)t Dat to y de ll a t p a a o ro r)-.fa g e v Th e id n v d or e g e r 20 b oup a e e llq 07 ne ouit cs ha a fit (tion yFi p fun g v aur e yto me d no e s a e 8) nts qloa uiti nd . 24 Y a n o e oun c bs ca o in u la rd g tn st ta e ing cra e rg nding 40 d e to t fun 1( d the k ad ) te as, w t p p fu la a arll. For n nd thil ic asipa e t v b old a o nt e rie oxa s e ks r w v m w ae p lue ith rle e ,.the 94 39.9% 14% 1 2 finds that the majority of them are holding one age-appropriate target date fund. 21% 401(k) plan participant account balances, selected years a Pta rw tic 5 w 0 ipa w s.nb nts’ erA .or ss 4g 0 e/pa 1 t 30s (A k)llo p p elc a ra s/ nt w ion ch13 as: ra 09 cP te 1 rre .i s lim t1 ic3 ina s, 6 b9 y r0 y n u Fi m nding be2 r 6 o,fs.” 3 p 8a 6 rW ticor ipa kn ing 4 ts 9:, 3 p E 1a B 1p Re I/rI C p I r$ 4 e 7 0p 9 1a ,(1 k r7 e ) 2 d da for tab ats he e in C e 2nt 02e 0r v s for . 2 0 P1 e9ns Dion a OL nd p lan partici 2020, pants fo is llo b waing sed is osn ua anc 1998 co emb of ina fina tion l re g oula f da tions ta$ fro 6,, 7 cm 1 e7 rta US in De cha pang rtme es nt wilo l f be La re b$ o q3 r, uire , 9Em 23% 02 d.p… loy Und ee Be er ne the fit p sro Se pc ourity sed re Ad gula minis tions tra,tion R Re esea latrio ch P nship erspe of ct iv EB e R 22 I/I , no. CI 8 (D 401( ece k) m b Da er) t.a A bva as ila e bP le lans at w t w o wt.ic he i.or Ug niv /pde f/rse per22 of Al -08.p l 4 d01 f. (k) Plans 67% (EBRI-ERF) Di, sor tri b the utir io st na o fffs. 40 N1 e(itk he ) P r lE aB nRI s, no Pa rr E tiB cRI ip-aEn RF lob ts, an bd ie s or Ass e tatk se b s p y osit Invions estm on en spe t Ocp ifitc io p nolic s, 2 y 0 p2 rop 0 osals. EBRI funds’ target dates. For target date funds, investors were assumed to be in a fund whose target date was nearest to their p p ma euc r rc tic h A ent ipa m bout or of nte s w p lik a rC e t eic rly hanges e ipa tm o nt or hold s in t e lik e e he q in ly uit ir to A ie tw s a inv cc ent e nd o st ie unt t s, 78 p in fixed o hold Balan e high -rinc cent o ces m c onc of e sec pe ant rt ur ic rait ipa tie ions s su nts in in e ch a tq he uit s b irie ond for s a t ie tfun y s, a ed as, G rnd -end 87 IC s a 2020 pend rcecot nt om he of pra pst ra ea rd tb ic le w ipa it vh ye a nt lu s in ea fun r-end ds, 40s 39 40s 24,986 F 4o 2r,m 96 5 7500 for 7a 6ll, 0 49 01 1(k) pla 1n 4s 0,203 $198,711 Average 1999 6,815 4,400 S Fiou g Sur orces a me e 1, re40 co nd 1( rdk k ) e Ty e Ppa pe errs tic s s ipa of up nt p D 17% ly s a ing Re ta p dr ae ta sent we re a Ra una nge ble of to A pro gevsid ................................ e complete asset alloca ................................ tion detail on certain p.......................... ooled asset classes 6 I Re 2022 nt tirr ea o m nd duc ee nt US ff eRe ct De tiv ion sea p ea Jrtme ra cnu h (C a nt ry P o RR) 1, f L2019, a C bo ur r,r e a Bure nt pl a Pa n eu ns ao dion P f mLinis abo olic tra r S to y ta r Itis ss ha tics ue s the s C 2022. onfe optio US rn enc o De f einc p , a artme lud t Mia ing nt m oo i U r f eLniv xc ab lud e or r,si ing Emp ty , the Oxfor loy re eq ed uire Be , OH ne me fits , nt June S tha ec t urity 8– the 9, • New contributions by the participant (+), the employer (+), or both. 401(k) Plan Asset Allocation, Account Balances, and Loan 30s 29 Receinv ntly ite hir s ceom d pm ar e A tnt ic gipa e on Gnt rtohis s w up r ee rsea e mror ch. e likely to hold target date funds than those with more years on the job. At year- The 65th 20 birthd 20 E aB y.RI Th /Ie C Ie q 40 uity 1( kp)o d rti ao ta n bw aa se s e iss tima a rete prd e 25% sent using a tthe ive ind sam us ptry le of ave the rag e est eim quity ate d pe uni rcev nt ea rse ge of for 40 the 1( k a) s sp ig la ne ns d. ta At r gyeet ad ra -e te nd or t 20 he 07 m ir one . siFor xty ie fun e s ha xad m d s (F p no leigur , loa nee a ns r6 ly )out . 80 For st pa e e nding rxa cem ntp a of le t , y 40 a em a 1( rong -k e)nd p p la a 20 n p rt20 ica ipa .rtic nt Iipa n a s in t nt dd s in t he ition, ir he tw pir e a nt rttw ic iee ipa s, t ntie nt he s ha s a wvit d eh f rm ag iv or ee e a or lloc tha fe n 80 p aw tion to e er ye ea rc re s of qnt uit of yt eanur tnd hee ir or 50s 38,620 58,776 94,806 162,966 279,626 $361,315 2000 6,856 3,824 S&P 500. New York: Standard & Poor’s. Figure A9 B forr ao dne y, P oe r tmo er, re K im o 53% f bthe erly ir B cliur ent ha sm . Th , aend fina Sa l rEB ah Holde RI/ICI 401( n. 20 k)12 da . tT ahe ba sSuc e inc ce lud sse of s otnly he p US lans Re fo tir r ew m hic ent h a Sy t le sta esm t 90 (Dp ee ce rcm ent be 53% o r)f . all plan Ad 2001. minis 20 stra emp tion loy 2021a ee firsre t p oo brts tain tha a p t la the n re loa w n epre rior abto out re604, ques400 ting401( a hakr)d s phip lans d is in tri 2019. bution (Reg. Section 1.401(k)-1(d)(3)(iv)(E); Over the past four decades, 401(k) plans have become the most widespread private-sector employer-sponsored Seve •r al rT eot c Inv or ae l inv ds kte m ee e p st nt ing m Oe pt or nt ig on raeni st ur O za fn o fte ions re n a d by p crcov oun Plide an t d b a rla ecnc ore ds (± s on ),a c w Pthic iv lae ns h d par etp iceipa nds Pnt aon rs in 401 ticitpa hent ps (ekr)for pla mns anc ae t y of A es a fin sre-te a snd ncia 20 l m 20 a. rk The ets a se nd 26% $87,040 In order to analy Si ze xti ets he change in participant account balances over time, it is important to have a consistent 20 fu Fi end g nd 20 ur 20 c , ea a20 2, lc ll 401 ula , 40 63 te 1( (d k p k ) us e ) rp P ing c 60s la a ernt ns tthe ic of ipa he Mo p ld nt ar rning s at ic Re tot ipa p a sr ta l o nt er sent s w f $6.8 t 5L 9ife ,7 it 7 time a h two 1 Ra rill nge All ion in or o6c 7 of a fe ,tion 9w 4 Job a5e ss rInd e y Te te se , a nur xe ra 9s of 5 nd s,e 3(s 2 st 3 ................................ te he e enur Mo dae trning 1 ahe 4b 0a ,ld 5 se s 1ta 2 t a rr e rg 2020) pe re t2 sent d 25 a ., t2 For ................................ es a 5 9 fun b the out ds, a 3 v 15 5 ce 1 om ra , 1pg 7p e 4 er a c 401( re ent d w k of )it ............... p h 56 tha lan t asset 6 Activity P i lan n A 20 ssets20 2001 6,644 Figure A8 3,659 a w bc a it c la h mor ount nced b e fun a tla ha nc dn 30 s w es inv a s ye 89 ea srts of p ee dr c in e teent nur q of uit e ie aw ss s a ee re tts, c y le ess a orm -lik epnd e aly re 2020 d to w us ith c eom a the bp out a loa re 70 d n p w prit e ov h le rcis eion nt ss of ttha ha an ss n o ha etts lf a he arm t py ong a era tic r -p ipa eand rtnt ic20 s. ipa 07 Only nt. s in t Old 8 e p he re 40 rir c e1( si nt xt k ) of ie s. Asset Allocation Distribution of 401(k) Participant Account Balance to Balanced Funds by Tenure W asa se sh tsingt could on, bD e C id : eIntifie nvest dm . ent Compa1 ny Institute. Available at www.ici.org/pdf/ppr_12_success_retirement.pdf. emphasis added). Suggested Citation: Holden, Sarah, Steven Bass, and Craig Copeland, “401(k) Plan Asset Allocation, Account 40% r 3etire42 ment on ptla he n in alloc the at ion o Unitef a d St ssa ette s in s. a In n 2020 indiv, idua an e l’s a stim cca ount ted .60 million American workers were active $ 840 1,11( 40k) plan p lan recordkeepers include mutual fund companies, banks, insurance companies, and consulting firms. Although the sample of P pe arrce ticn ipa tag nt es. C of po 2002 la m np aa sse ring tsaverage a6 c,c 6ount 59 balances across diff3 e,r7e 0nt 0 year-end snapshots can lead to p a ll e So rec cea e tion nt Inve of to stm p a ee q rtnt uiti icipa Comp esnt ( Fthro is w fta ieny sit ug h Ins h m e tit or qut uity e et ha 2022. fun 10 to 20 ye nds , company asrto s of ck, ta end nur the e, aend quity 44 pp oertion rcent o f of ba pla anc rtic eipa d fu nt nd s w s) it bh mor y particip e tha ant n 30 age,y e se ae rs t US otaD l.eA p The a srs tm etd e a A nt tla lof o ba cL se aatb ia o or ls n, o D B cu iov s re te rairb u o s 19 p utf La ion eb ro o ce r f nt 4 St 0 a of 1 tis (k tthe ) ic P s. uni a 20 rtv i22 c eirp se . a Nn of at t iona A acc tc iv l C o e u 1om 40 nt 1( p B ekns a ) lp a ala tn ion Sur n p ce a to rt ic v B e ipa a y: la nt E n m s a cp end loy d F e 13 u e n B pd e ene s rc b e fit nt ys A of Sur ga ev ll ey. p pa ar rt tic icipa ipant nts w s we itr h a e m ccuc oun h le t b ss 21% a la lik nc ely es of to ha lev ss e tsu ha cn $10,0 h high c 00 onc he ant d rloa ations ns out in st ea qnding uities a . t year-end 2020 compared with year- $78,267 Percentage of participants, 2020 Holden, Sarah, Jack VanDerhei, Luis Alonso, and Steven Bass. 2013. “401(k) Plan Asset Allocation, Account Balances, Equity, bond, money, and/or balance24% d funds 47,170 2,948,703 $230,578,611,880 Figure 3, Dom 2 estic Stock and Bond Market Indexes ................................ $76,293 ................................................................. 7 By Sa Bala ra nc h es, a Hold nde Ln, oan IC AI; ctiv S ittye ive n 20 n Ba 20,” sEsB , RI IC II; ss an ue Bd rieCra f, no. ig 576 Co, pela and nd, ICI E ReBRI searc h Perspective, vol. 28, no. 11 40 2003 6,839 1 3,83 $2 75,358 39% p Ya oung rticipa er nt pa s. rt ic By ipa ynt ea sr - ha en dd c 2020 onsist , e 40 nt1( ly khighe ) plan a r ass lloc etas ha tions d t gor ow tarn to get d $6 at.8 e fun trilld ion, s. Ar e ta prrg ee se t nt da ing te, a or bout life c one ycle -fif , fun th o df a pur ll sues a EBRI •/I CIW pit roje hdr 43 1c 0 a t0 w ha N aols s c te ( : olle -T )h , eb c a or te ve d rrow ad ga e ing t a ac f c(ro -om ) u, na t 19 nd bal96 aloa n cte hr n aroug m ep on ah 20 g y m alle 20 1 n1t.s (+ , 5t m he i) ll . iuni o n 4 v0 e1 r(se k) p of lan d a pt aa rt ip cr ip ov anide ts w rs m as $a 8y 7 ,v 0a 4r 0y ; from year to For additional detail, see Figure A1 in the appendix. $73,672 Fi Se ge ure a fa ls ls 6. oe Do conc ld 2018 lusions and F. o rt For Jie os int exa Committe mple, ae d d oing n Tax a lP a ation e rrg ce e n 2019 num tageb o (e p f rp p a .of r104- tic ne ipw an 105) tp sla , ns .2 $ H 0 7 2 w o 3 0 ld ,it 3e h sm 5n, 7 Sc ahra llers b s,a a la nd nc e Chis s to m the 2022 dafind taba a se n o w ng ould oing 40 of 1( tek nur ) pela (ns Fig . ur The e A9d ).is tribution of ass 1 ets, participants, and plans in the database for 2020 is similar to the universe of Washington, DC: US Department of Labor, Bureau of Lab $or 72 ,St 38a 3tistics. Available at www.bls.gov/ncs/ebs/benefits/. e 4 nd 20 30% 07: 15 percent of 401(k) plan participants in their sixties had more than 80 percent of their account balances BrightScope and Investment Company Institute. 2022. The BrightScope/ICI Defined Contribution Plan Profile: A Close and Loan Ac t O iv f iw ty h iin 201 ch: targ2.” et dIaC te I fRe und sea s r ac re h aP ne o rspe ption ctive 19, no. 40,12 04, 1and EBRI 2 ,6 Iss 39ue ,70 9 Brief, no. 39 200 4, 9(1D 2e ,4c7 e2m ,2b 0e 5r). Available at The Employee Benefit Research Institute (EBRI) is a nonprofit, nonpartisan, public policy research organization that does not 3 2004 6,946 3,893 4 Percentage of Account Balance Invested in Balanced Funds (November 20 th22 e m ).e dian account balance was $17,961. Account balances are participant account balances long retire -tm erem nt inv ass ee st ts. me n In a t stn o rate ng gy oing , us ing colla ab m orix of ativea e ss ffe or t tc,la tss hee E s m tha ploy t follow ee Be ne a p fit re Re desea term rcine h Id ns rteit aut lloc e a (E tion, BRI)ty p aic nd ally the year. In addition, the plans with any given provider may change from year to year, which changes the plans provided. downw tend ardt o tre pnd ull in dow the T n th h p irte ie rc e s e an vta erg ae g e o f a401( ccount k) p b la an lap nc articip e. Thi ant s c soul with d to he uts n b tand e m ing is tloa ake ns nly in d re ec sc er nt ibe pe driod as s a.n ind ication that Fi p 41la gur nse a 4, s rD ep isor trtibut ed ion o by the f 401 US (D ke ) p Pa la rtn Ac ment coun of L t a Bbaor la nc (DeOL s b )y ( Fi Size gur of e A A2) cc.ou nt Balance ..................................................... 9 inv 17 ested in e Equ qiuit ty,ie bo s a nd t ,y m ea on r-e $ e6 y nd 5 , ,a 42020 nd 54 /or c ba om lap nc ae re d df un wit ds h; 30 F ipg eu rr ce e nt 10 of 401(k) plan participants in their sixties at year-end Look at 401(k) 80 Plans, 2019. San Diego, CA: BrightScope and Washington, DC: Investment Company Institute. Available See Figure A1 in the appendix 2005 . 6,821 3,661 lob w w Sbw eye.ic ono r i.or ta tek g 1 e/pd 6p o fo f/ sr iti pae odr ns d 19 it o ion -n 12 a le .p l gd d is efla t a ativ il nd o en w pt ro w arg p wo.e est a bd ls ra i.or . te g fu /c nd ont s. ent/401(k)-plan-asset-allocation-account-balances-and-loan- held in 401(k) plans at the participant$s6’ 3c,9 u2 rr9 ent employers and are net of plan loans. Retirement The change in any individual participa 5 nt’s account balance26% in the database is influenced by the magnitude 17 of these Percentage of Account Balance Invested in Balanced Funds I re nv be ast lanc me ing nt C to om shpift a2ny its foc Instu its fr uteom (IC g I)row colle th to inc ct a24% nnu om ae l d aas t tah o en mi funlli d ons of approa40 che 1(s a k) n pd la p n p ass ae rts it icipa s tnt ars a ges a t da m tee .ans A tt o ye e axa r-e m nine d Thu US D s, a epa gr gtrm eg ea nt te of figur Labeor s in t , Em his ploy ree pe or B t egne ene fitrs Se ally csh urould ity A d not mini be st r us ate ion. d to 20 est 12. ima Ptre iv 24% a titm e e P e trn esi nds. on PRe lan B corull ds w etin, er eA e bnc strra yc ptt e of d Ownership of Investments in Equities Is Commonplace Among 401(k) Plan Participants Key Fin balad nc in eg s a s:r e dec Tlin weing, ntiesbut it would te$ ll 6us 0,3 2 not 9 hing about consistently participating workers. Similarly, the and GICs and/or 4 ot 0he 1(k r ) s tL abl oa en v aA lue cti v fun ity ds Varied A 2c 7r ,9 o 9s 1s 401(k)6 P ,0l 0a 1n ,9 0 P 3articipan 4t 8s 4,368,784,275 28 2006 7,292 4,089 Yea2007 rs of . Te Anu cross re all a Zeg re o group >0 to s, 1a 0 low >10e tro sh 20ar> e2 0 he < t1 o ld 00 3 no 0 > e3 q 0uit to 8622 ie 4s a 0 >t4 0y 0 .1 e t9 a o 1 r5 5 -e 3 0nd > 15 92020 0 .1 t5 o 36 20com >60 p a to re7d 0 w >it 7h 0 ty o e8 a0 r-e >nd 80 t20 o 907 0 .> 90 to 100 at www.ici.org/sys st ae vim ng/f sile hes/ ld2 i02 n p2 la-n 09 s /2 at 2 p- re ppr viou -d s c ep m la pn lo-ype 7 rrofile s or - ro 40 lle1k d o .p ve drf i.n to IRAs are not included. The tenure a c In tivC ip to y lain p n y -y 2 re 01 ig arh 2 2019 t In -532form 5w (law tew s at ti .e do b an r ta i.or : a Tvg his a/c ila ont rb ele pe )or ,nt o t/4 nly is0 c 1( 1. op k 2 y )- p rp ight ela rcn ee -nt a dss o be f yt the a the lloc $6. E am t2 ion ptril loy -a lie o ce c n o B in unt e401( ne -b fit ak la Re ) nc psea la en s- ra a cs nd h I se-ts ns loa w tit n eu -re a te c p t( iv a Erticip it ByRI -in )a . -nt 2012 You loa- m nsa.y Age 42 18 5 t Fi hr ge ur ee fa 5, ct40 ors r 1(k e60 )la P tiv lae n Ac to tche ou 28% n st t aB ra ting lanc aecs I count ncre b aa se lanc Wit e.h P For art ic exa ipa m nt p le A, ge a a cont nd rTe ibut nur ion o e ................................ f a given dollar amount ................... produces a 10 1 For 401(k) a $s 5s 5e ,5 t 0fig 2 ures, see Investment Company Institute 2022. 2020 how Th Th e e t , he Inve 31 401( se .0 s k tme p p )a e p rrtnt la c (ic pe n e ipa nt Comp rs c p ent of o ntns s m 40 a oo ny f r 1( p alsna a Ins k e n) le g a tit a c e sts ss ute st e he e the tt s s in t ( ir )ICI) inv 40e 1( he is stme k the d ) a pnt t la a leb n a a oa d pse ing tions ccw ount ae s a rse v os. This a cinv il ia ation b ele st e in rre d ep p the in t or res ta p eis la rnting g n. a en up t Fi d re g aure td g eula a fun t A ete 7of d d in s E inv . tB A he RI e m s e ong tme a xc nd e nt l p I file a C fu rIt nd ’ic s ong pre ipa s,s inc e nt nt oing s in lud s the ing r the e se m ira utu rch al 20 befor 05 e For inc m lus 55 ion in 00 Annu the adl Re atab pa or se ts t(o Ve conc rsion ea 1.1) l the. ide Want shitingt y ofon, emD pC loy : US ers a De nd pae rtm mp eloy nt e of es b Lab ut or w , e Erm e pcloy ode ed e so t Bene ha fit t s Se both coul curity d 0 to 2 aggreg a t O ef w a3 v h0 e ic .r 1 ha:g te ar g ae c 4 tc .d ount 5at2007 e f ub n La d o 1 la s a .1 n nc a are c e t iw a vin tould y o 0 b p .9 y ti ot p n e a 7nd r,t4 ic 9it 5 po a 0n .b 6 te a g p 2 e ull 4 ,, 9 te e 7d n 0 9u .d 6 re ow , on if r acc 0 a 4 o . ,7 u 9 la 4 n 6r ,t9 1 g ,s 6 3 e i7 z 2 num e 2, 02 .0 6b 20 er of4 old 0 09 .6 ,1 e7 r 4p ,1 a5 r3 tic 0 ,9 .ipa 6 52 nts re5 t9 ir.e 6d. total 100-500 6971 0.15486 15.4856 variable is generally years working at current employer and thu2 s0 m 20 a yE o BvR er I/sIC taIte years of Grou At p year-Z ee nd ro2020 >, 0 94 to 1 p0erc >e1n 0t tof o 240 0 1( >2k 0) tp o la 3n p 0 >a 3r0t ic to ipa 40nt> s he 40 tld o 5 inv 0 e >st 50 m te o nt 60 s in >6 e 0q to uit 7ie 0s (eq >70 uit to 8 y0 fun >8 d 0s, c to o 90 mpa >ny 90 tst o o 1c 0k 0, See Table D6 in US Department of Labor, Employee Benefits Security Administration 2021a. 5325c.op y, print, or download this report solely for personal and noncommercial use 11% , provided that all hard copies retain larger growth rate when added to a smaller account. On the 6 other hand, investment returns of a given percentage 14% 31 • 401(k) plans draw in many young retirement savers and new hires. At year-end 2020, 38 percent of >2 tint fu t d ow is 5 nd e o trib nt s 40 ,ie ution e 1( s, xckha ha E ) o qu p ng lf f la ip of te n p lya -,2 tra ns t9 bo he a .,0 d r nd t p ir eic a d ,40 ipa rtici fu m1( nd on nt 5p .k a 0 s’ s e )nts y ( 2008 a a ,ETFs ss c a , tnd a iv end tit 1 ) s w /, or y . 7 a ctlo s ba e hr sr se e oug e lts a dinv nc -b eh ye 1 y e nd e . 5 d fo st ffu e ur un a7 d r nd , - 1 ds cin t e 9 o snd 1 ;mb , 1 a a.nd r 20 1 ina ge 20 un tions t d .it a inv The t e 1 o. f 1 fun einv srtme ed e ps a s ont tme rtt 1 trus is .y 0 nt e 3 d a ,tiv o 8 rs- ff 8 ide e ( 9 eUITs nd ring d 0 .20 int 9s ). 20 io n Th t; the hr ea fi e m 1 rs e Unit .ong 0 t sect ce a d te pions a S grta o t1 ic ry te : . 1 ipa ts is he , nt a the nd fir s in t st b UC a 5 s 6IT h e .5e S ir A b Ae dppendi m trini acs kte rd a tb ion (Ma x y resea pa rrc rtc h) iche ip 100 . a rA s ove tiv oa p nli a lia n nr b t a h le m s e s ult a 4 et 0 t s iple 1 w (k w ) w p yle .d aa nol. r .5s. 0g 1-ov 1 0/s 00ites/d 3481 olgov 0/f .0ile 77s/ 33 eb7 sa .7/r 32 e8 sea 1 rchers/statistics/retirement- 43 40 C lark I, n a Jed ffd re ity ion, W. c20 ha22 nge . H s in t ow he Am s ea rm ica p le Sa of ver s 202 ecord 2k . eVa eplle ery s a For ndg e cha , Pnge A: The s in t Vhe angua set o rdf p Gr la oup ns , for Va w ngua hich th rd C ee ynt ke er e p for re cords 20s 31.3% 3.2% 1.3% 1.3% 0.9% 0.9% 0.7% 0.6 2% % 0.6% 0.7% 58.4% Fi g Es urtima e 6, te Asv o ef ra the ge nu Ass mb ete A r lloc of 401( ation o k) p f 401 lans ( ak nd ) P ala ctiv n Ac e p ca oun rticitp sa b nts y P aare rt ic bipa asent d oA n ga e ................................ combination of data fro......................... m the US 10 and the equity portion of balanced funds) (Figure 8). Nearly half of 401(k) plan participants had more than 80 percent $45,519 any and all copyright and other applicable notices contained therein, and you may cite 27% or quote small portions of 29 2009 7,346 3,972 >5 tp o r1 od 0 uce laa rnd ge rc d om 3olla 0.pa 8r ny inc srte oc 5a .5 k ses (or2 d .5 ecreases) 2.2 when com 1.6pound 427e 1d .5 on a la1 r 1.g ,3 1 e5 r5 a ,1ss 52 et 1 .b 2ase. Ass 9 1 7 .e ,4 1 t 6a 2lloc ,552 a,1 t2ion a .1 65 lso 50.4 12.0S % ource 100 : TaP bu la la nt iA os ns se ftrs o- m - EBR1 I/0 IC 0I1 P -5a 0r0 ti0 cipan 9054 t-Direc 0t.e 2d 0 1 R 1e 3tire 2m 0.e 1n 1t2 P 8lan Data Collection Project a gnd ro Sup e seimi , aw ls la hic 40 or Fi fu 1( h g nd c k ure o )ns sp o la A12. is ffts n p e re o a f drp tto la ic ns ipa inv tha nt ess w to t rs oe ff r in eer Euro in t neithe he peir r, c As to wmp ia ent , a aie ny nd s or soto the c thir kr no juris tie r s, a GICs dicnd tions o24 r o . the ICI’ perr s cs e mis ta nt b le s w io e v n raelis ue in t to fu he snd tre irsng .for Tw the tie en nty s. For the -s ix fo t y p u-e nd trc hr a ee tion nt e of of p sirxt esent ie1 s, to s a a b 10 out sn a28 1p 1sh tp oot e 2r5 cof ent 2 p6 aof r to tic t5he ipa 0 irnt 5 40 1 a to 1( c c 1k ount 0)0 a1ss 0 b 1e a tto la s w 2 nc 5e 0er2 s a e 5 1 inv t t o ye e 5st a 0r 0 e-d e n 5 in t d 01 2020 a to rget ; 1d t,he 0 a0t1 e second tfun o d 2s (F ,50 looks 1igur to e a5 t6 , 0 p ). 0a 1r t tic oipa >nt 10s’ ,00 a0sseA t ll Plans 30sbulletins 2/pr 8.5% ivate-p4 e.ns 2%ion-pla 2nbulle .1% tins2 -.a 1b % stract-1 20 .60 % 5.pdf. 1 .4% 1.2% 1.1% 1.2% 1.3% 55 1.1 3.% 4% 401 ca (n a k)ls P o lan influe Loan nce the s cA ha re nge Wide in a Active gg P ly A 4re 0e 1 rg (k) ca etvailabl nt Pl e a aa n ge v Pa e r of rt ai g ci Ee e p li agi a nB c tbl scut ount e 4 0 R 1 b (ar ka ) la e nc ly T e. 40 Thu 1ake (k) s, t Pla n o n Ass asc ee tsrtain what is happening to Re tirement Research. Available at https://institutional.vanguard.com/content/dam/inst/vanguard-has/insights- De Hold pae rtme n, Sa nt ra oh, f L a Ja bc ok r’s $ Va 3Emp 9nD ,88e lo 5ry he ee i, Be Luis ne fits Alons Seo, curity and Ad Stminis eventra Ba tion ss. a 20 nd16 Bure . “40 au 1(okf )L P ala bo n As r Sta se tis t tics Alloc . Sa ete ion, discAucscsoun ion tin Bno ala te nc 2. e s, 1 of their account 20 balances invested in equities at year-end 20 27% 20. Younger 401(k) plan participants were much more 2010 6,846 Lo 3,a 6n 19 as a Percentage of the Remaining >10 to 20 the report p3 rov 6.2ided tha 7.2t you d4 o .1so verba 3.t4 im and w 2.it 3h prope 1r. 9citation. 1.A 7ny use 1b .5 eyond the 1.8 scope of 2.4the fore3g 7oing .6 $37,3 2 3 Of which: ta100 rget P da atre ti c fu ip na dn sts -a -re an o >p 5 t0 io0 n0 16888313 01.,3 07 05 016 37 2.,5 1 51 ,0 1 5 0 1 66,357 5,000 10 8,9 0,0 90 19,692,488 influences investment returns and changes in assets. For example, stocks (as measured by the S&P 500 total return 40sD Fia gtur a e p r7, 3 ov 5.Ta ide 6% rd g efor t D 6e a .a 0 te % c h p Funds’ artic 3 .ipa 2 40 %1( ntk inc ) Ma 2 lude .9 r% ke dt d Sha ate 2 r .e of 1 % ................................ birth, 1 fr .8 om % whic1 h a .5% n a ................................ ge g 1r .3 oup % is ass 1.5 igne % d................................ ; d1 a.t8 e% of hire, 4fr 2.om 1% whic . 11 h p the articip asse atnts p ma e rin c na ethe nt ge of me 2020 40 nt 1( ind EB k) us R p I/ tr la ICI yn p fo401( r athe rtic k ipa )ulti da nt ma ta s ha b te a sb e de w ne fiv efit e re or o in f fe the thw e s e lon e r p yg la e-a te ns rs of rm , wind hic teh iv nur ig de ua ene , l inc ra inv llluding y e so to ffr. er ne eqa uity rly one fund-s fif ,9 t .bh w 0o % ndho fund wesr,e mo ney allocations, including analysis of 401(k) Pp aarr titc ic ipa ipant nt ss’ Wus ith e O of utt sa ta rg nd et i ng da te, or lifecycle, funds; and the third focuses on 30 pdfs/2 402_ 1(T k) L _H paA rtS_F icipa ull nt Re s’ p aor cctoun _20t22 ba .p la dnc f. e s, a set of consistent participants must be analyzed. Future research will W and hil The L is oa ap a n m tte A ajc rn or tiv it is iy t y dof rin 201 iv40 en 1( in 4.” kp ) a pI rt la C 2011 b I n y Re p re asea rsttrictio icr ipa chnt ns Pe s a r pspe la re c ec in p d 7 tiv , 0 oe 2 n la 7 22 loa ns, n tno. ha amo t 3, a aun llow ts nd . loa EBns RI, I re ss la 3F ue ,t 7 iiv g 8 5 B e u 4ly r r0 e ie 1 fe f (A k , w )6 no. P p laa42 n rtA ic 3c ipa ( cA ou p nt r nt s m il) B . a A alv d aa e nc ila us ebe le of att his >20lik toe 3ly 0 to have high 40 .2 concen9t.r4ations in e 5.5 quities. A 4.4 t year-e 3.nd 1 2020, 2.ne 7 arly 80 2. 4 percent 2 of .3401(k) 3p .0 lan part4 ic .0 ipants in t 22he .9 ir Equit1 y0 , 0 bo .00 nd 15 , 7 m 7 0.5 on 325% % P eay r,t ic aind pan /or ts-ba - lanced funds; requires EBRI’s prior express permission. For permissions, please contact EBRI at p 2e 0r 1m 9 is Fo sirons@e m 5500bri.org. 50s 34.4% 6.8% 3.9% 3.4% N 2 um .4% ber of P2 a.r 2 t% icipants 1 in .8P % lan 1.4% 1.6% 1.8% 40.3% Note: At year-end 2020, the median 401(k) plan participant age was 45 years old. a inde US teD nur x) ep inc e a rrtra m eng a esed nt e is of bay L ss a 18 igne bor .4, d p E; e m roc p ut eloy nt st a ednding eur Bing ene loa 2020 fits Se n b , a w cla 4 ur hil 0nc 1 ite (y e k )b ; A Lo ond fd unds in m ans s (a inistsr a tm he tion. e ap su a20 rrte ic 2 dipa 1a by . nt P t’he rs inv iv a It Ce e E st PB e m ofA ns ent ion P US por C la tor folios n B por ull a ; e ta e tin, nd In A d ae b ss x st e )r ta v ca t lue of s Ta fund rge s, a tnd Da bt ae la nc Fu 0end d fu snd Cs on ast iinve nue stme to nt Be o p P tion opu s. lar Ano ther 52 percent of participants were in plans that offer GICs and other recent hires (two or fewer years of tenure). participants’ 401(k) loan activity. An appendix describes the EBRI/ICI 401(k) database. 6 2 examine linked data to ana 2012 lyze 5.2 t% he consistent 7, 1 sa 53 mple of participants in t 3he ,85 8 EBRI/ICI data collection effort. >30 44.7 11.1 6.2 4.7 3F .4igure A 21 .9 2.4 1.9 1.8 1.7 19.2 b Fi w or Th w gur r w is ow e .ic up 8, ing i.or da E g te p xpo /pub r iv exte su ilefil r g nd e e e _pd ts (o Fi pE g re 100 f/ q ur v uit piou e eP r ie 9 22 ls a ) s I n .find -sI 03 nc -nde - ing .p red e asd fsed fro ,a 53 nd m A m p w the s e ong w u rm c w p e.e ro nt 40 b je of r1( c i.or t k tfo 4 he )45016 g 0 rP /d 1 1 a 40 (oc 996 rk t1( ic )s/ P ipa kd thro ) le a nt p fa n la ug s B ult A ns h s -e sour s for 201 tw ete s w 9 e c .e n 2007 hic A /e For re h loa b rC yi- eis o aa n su n rn - c e d d e n e a -d 20 n t ba r2019 t ie 20 rw a f/ e t ................................ e e re b d r e r a i_i s in v ults a b E ila _4 ,q b s 23 u le eie t .p in t i e Hds ofhe ld . e n, 2020 Ba ...s 12 s, company stock; and GICs and/or 12% 60stwenties 3 4ha .0% d more 6 .t 7ha %n 80 p 3.e 8r % cent of 3t .3 he %ir account 2.4% balanc 2.e 1s % invest1 e.d 8 % in equit 1ie .4s, c % omp 1a .5 re %d with 115 .7%percent4 1 of .4% 401(k) 31 Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project 32 100 or Fewer 101 3 .t9 o% 500 501 to 1,000 1,001 to 5,000 >5,000 inc Th ree a sed EBR b I/y ICI 9.8 401( perkc)e d nt ata (Fi ba gsur e e e nvi 3).ro nment is certified to be 6% fully compliant with the ISO-27002 Information Security Audit 20 a sta tt19 r bibut le A For v lle alue d m t o 55 futnd hose 00 A s annu sfun an a dl Re inv s. A ep s ntme or atcsc nt ount (Ve oprtion, si bon ala in 1.0) nca ed . for dW iti o a en sh a16% c to ingt h p the a on, r tb ic aD ipa se C : nt op US tions is D the e.p Alte a su rtm m rna e of nt tiv t he e of ly ,L p a 1 ab 0 ror tp ic 8% e , ipa rc Em ent nt p’s a loy of e ss pe ae rticip B ts in a ene afit nts ll funds. s Se wecre ur in ity • Younger 401(k) plan participants tend to 3.1% be invested more in equities than older 401(k) p 18 lan AllCop Pe erla cend, nta g C er a oig. f E3 li2 20 g.i9 b 11 le . 4“ 0Ta 15 (k .r 5 ) g Pe 2013 atr tD ica ip 2 ta e .9 n Fu ts w nd ithUse 4 20 .6 1 (k in 401 ) 7 L,o 4a 21 n( s 1 k .b ) 9y P P la lans n Sa 1 ind z .7 e, t 2he 020 Pe 1r .4 si3 st ,9 e7nc 3 e 1of .2 Their Use 1.3 , 2< 007 0.51 –. 120 5 09.” E4 B7RI .0 2.6% 25 100 Plans-- 4 The 01 inv (k) est ot m P he e ar nrt t sop ticipant abl tions e va t lha uest ’ f un aA p ds s las n o etff A erll s c o E aca B n R 4 si t 0g Iion 1 /Inif (C k)Iic p s’ 4 a la 0 nt n1 C ly a (o k v e a )nt r ff 919 a P g ele inue c a ta n s how s D ea t tt ap a lo la o b 2 r c .a tS 1 2 aic ,s % t3 ke iipa o e 5n 6 ,,w nt 1 p6 e s a 5 rc To elloc ntwar ag ae te o ftd 1 he t8 o5 tI ir a ,5 nvest l 3 40 a2 s,s 1( 5e 6tk 0 s) ,,3 m a 7 sss 4ee le ent t cs t; e din yaend ars Alland Cop3 e2 la .9 n% d 2022a 5..5 % Results 2 fo .9r % earlier 2 y.e 6a % rs are a 1v .9 a% ilable in1 .e 7a % rlier iss1 ue .4s % of ICI 1 R .2 e% search P 1e .3rs %pective 1 .5% 47.0% EBRIR /Iep CIo 40 rt Availabili 1(k) databaty se: offe This r red e paor ptla is n loa avan ilap brle ov on ision to p the inta er rtne icipa t atnt w s (F ww igur .ebr ei.or A10 g 1 .). 8% At year-end 2020, 16 percent of plan participants in their sixties. 1.6% Number of Plan Participants standard. Moreover, EBRI has obtained a legal opinion that the methodology used meets the privacy standards of the Gramm- P A pla la dm ns n b ini tha asltar tnc a otff ion (Se es a er cro emp c ponst ta eny mb ruc seto rt)c e . kd A 2014 b v aut a s t ila no he b 1le ssu ta ab m t le w of w vaw a lue ll p .d ol.g 7 p a,ro r 7t8ic d ov 0uc ipa /s ts it nt ,e w s/ bhile a dla olg nc the ov es /f re in t ile ma s/ he ining eb p sa 4la , /r 2 12 n. 3e 9sea P pe larc n s rc ehe nize t ros/ f isst p a e arst tticip is im tic a as/ tnts erd e tw a irs t e ere m he e in nt su p -lm ans o f that FigurA e bout 9, Few t40 he 1( kE L )e B P sa R s rTh tI ic/IC a ipa n $ nt 1I 0 s H ,Da 00a0dt Out abas standing e >40 $41( 0,0 k0 ) 0L oa to $ ns 50 ; ,0 L0 oa 0ns Tended to MB oe re Sm Tha an ll ................................ $100,000 .... 13 Issue Brie pfa , rno. ticip 36 a1 (A nts.ugus On a t)v. eA ra vg ae ila , b ale t y a eta w r-w end w.e 20 br20 i.or , g 69 /c ont pere cnt ent /t a of rg40 et-1( da kt)e p -fund artic-ipa use nt -in s’ -a 40 ss1( etk s) w -pe la re ns inv -andth ested e- in equity Holden, Sa r a O h, f w Ja hic ck h :Va tarnD gete d rh ate ei, fua nnd ds St are ev a en n B opa tiss on. 2021. “Tar 716 get Date Funds: Ev 1 26 ,2 ,2 27 5,62 ide 8 nce Point 16 s t 9,o 47G 8,r1ow 222,ing 105 Popularity and t arget date funds are an investment option that have been increasingly offered in 401(k) plans and increasingly used by E (wquit ww.icie i.os rg /research/investors/ebri-ici) and EBRI Issue Brief (www.ebri.org/publications/research-publications/issue-briefs). 401(k) participants with access to loans had loans outstanding (Figure 9). However, not all participants have access Percentage of Account Balance Invested in Target Date Funds Age Group 2015 7,982 4,359 Leach-Bliley Act. At no time has any nonpublic personal info Frma igution re 8that is personally identifiable, suc 2 h as a Social Security offered both company stock and stable value products in addition to the base options. b ac ull tiv ee tins pa/pr rtic iv ipa atP e nt a -p rs in t te ic ns ip ion he an -tp p sla lan a nbulle nd,t ins as su -ab cst h, ra dcoe t-20 s not 19.p ne dfc.e ssarily represent the total number of employees at the 401secu (k) Plra itn ieC s t ha hrra oug cteh e ristiq cuit s by y fun Num ds, t berhe of e Pq la uit n y P a pror tic tiion o pants f b , 2a 0la 20 nced funds, and company stock. Younger persistence-of-their-use-2007-2009 P-e 48 rc7 e1 nt . a ge of Account Balance Invested in Target Date Funds Appropriate Use by 401(k) Plan Participants.” ICI Research Perspective 27, no. 7, and EBRI Issue Brief, no. 537 40 1( <$ k1)0 p ,0la 00 n p $1 a0r,t0ic 0ipa 0 tont>$ s 2 (Fi 0,0 g0 ur 0e >$ 7)3. 0Ta ,00r0ge>$ t d 4a 0t ,0 e0 fun 0 >$ ds w 50,0e0r0 e a >$ va 6ila 0,0b 0le 0 in >$ 86 70,0 p0e 0rce >$ nt 8 0of ,00t0 he >$ 40 91( 0,0k 0)0 p>$ lans 10 0in t ,000 he >$ y 2e 0a 0r ,0 -0 e0 nd 20s Size6% of Accou Fint gu B re a l3 ance 18% t Fi Ao tg 40 y ur ee a 1( r10 - ke )nd , p40 la2020 n loa 1(k), ns L42 oa — n A p in t erc cthe eiv ni tt2016 20 yof Va 20 40 r ie E 1( B dk RI ) A /I c prla C oss In p 40 40 a1( r1( t7 k ic ,)k 9 ipa ) 0 d 7a Pnt tla as’ n P b a ase, c acrount t ic 84 ipa p b nt ea rs c la ................................ enc nte of s w 4p ,e 2 a7 rre t 9ic inv ipaenst ts w ed e in e r................................ e q in p uity la ns fun offe ds, on ring aloa ver..... n as. ge 14 , 7 The EBRI/I PC eI r ce Pa nrttaic gipa e ont f p-a Drir tici ec pta en dt sRetir 2e 0m 07ent 2P 0la 08 n Da 2t0a1 0 Colle 2c 0t1ion P 1 2r0 oje 13ct g 2a 0t1he 5 rs inf 201or 6 ma 2t0ion a 17 b2out 018 indiv 20idua 19 l 2020 nu For mba en r, abna e Ae lly ln E sx tra isp o ns o f s fe the urr r e e cd ha t o to ng E oeq r ss u in ha itia re e cs d co Iw un nith ct rb e EB a ala s Rnc e I.d es A om f c o on ns gis 4 te 70 6nt ,1 5( 0 p k 7a )rticip Part aints c1 ip 1 in ,a 4n 6the 1 ts ,9 2 B EB 3eR tw I/ICI een 401( 92 90 7k ,0 6 )7 4 d 2 a a ,5 n t0 ad 8 b, a 7 2 s 40 e 4 2 in 0the wake of Agesponsoring firm. Within the year-end 2020 EBRI/ICI database, it is possible to link individuals across plans across a Num $be 20,r0 of 00 Plta o n $30,000 to $40,000 to $50,000 to $60,000 to $ To 70t,a 0l0 0 to $80,000 to $90,000 to to Average Yea19 rs of Tenu pa rerticipa 19 Ze nt ro s, as a >0 tg o r1 oup 0 >, 1ha 0 to d 2 m 0or >e 2 0t ha to n 80 p 30 >30 e rtc o e4 nt 0 of >40 t he to ir 5 040 >1( 50k t)o p 6la 0n a >6ss 0 te o ts inv 70 >e 70 s tte o d8 in e 0 >8 q0uit to ie 9 20 s, c 0 >om 90 p to ar 1e 0d 0 Definit 30sion of 401(k) Plan Account Balance 15% 13% (September). Available at www.ici.org/files/2021/per27-07.pdf. 2020 Analdya stis a b oa f se. year -These end 2018 pla ns EB 2017 R of I/fe ICI red 401( tark g)e p t la da n tp e7a ,fun rticip 935ds t ant o ta 87 rgp ee t rd ca ete nt fu of nd the in 4 vp ,2 ea 9 sr3 to tic rs ipa find nts in t s they he te d nd at a to b a ho se. ld o ne At a yg ee a-r-end Table of Contents Domestic Stock and Bond Market Indexes F (*a)c = tor leing ss t h in a an 0 ll 401 .5 per(cke)n p t articipants w 1ith and without loan access in the 1 database, only 13 percent had loans outstanding in line with recent years (Figures 6 and A6). Another 35 percent of 401(k) participants’ account balances were invested 100 $100,000 $200,000 US Depart m e O nt f w of hicL ha : b ta or rg, etE d m ap teloy fun ed es B e arne e a fit n s Se optiocnurity Admini 66st ,0r4 a9tion. 2021b. 9,95 P 1,r2 iv 4a 1te Pension P 869,la 48 n B 3,8ull 24e ,3t8 in 4 Historical Grou the p fina 401( nc Zk e ia ) r l op P cla a ris rn p tis ic > i( 0 a pa o rtv t o nt P ic e1 r e ipa s0 rthe cent n > tni 1 aa 0 g ne c e tc o -ount oy 2 f e 0 4a 0r1 s. A > p (2 ke 0 ) To riod s of p to a ta r3 t li fro 0 cD P ip le > m a ac 3 ns ne 0 tys m e t o b a by re 4 - 0 e r a g nd 31 e > 4 o , 2010 0 f 20 p P to a a 2 rt5 r0 ito tc 0 i, c ip t iy > a pa he e n 5a t0 nt ,rE - t s o B e ynd RI e 6a 0 r/I -2019 eC > n6 I d 0 d 2 )ta 0 ,o To t 0 sa 7 7 eb 0 te a a a n lH se > d A o 7 y s 0 ld inc s e e e ta o n, trlude s -8 e 0 n Ba d d > s 2s 8 0 st ,0 2 A a a 0 tc nd o tc is 9 ou t0 Cop icnt al > e B 9 la a 0nd l a to nc 202 1e 002b. Dold, Elizabeth Thomas. 2018. “Qualified Plan Changes Within the Bipartisan Budget Act.” Journal of Pension Benefits 0 to 2 36.6 0.8 0.7 0.8 0.5 0.6 0.7 0.6 0.6 0.6 57.5 Fi m 32g aur jor e 40s it A y 1, of EtB he RI r/I ec Cor I 40 dk1( eek p)e P rs. This lan Da tim abp arse ov ................................ es the ide22% ntification o................................ f active participants and ................................ 9% resulted in the recla............. ssification 16 with 56 percent of 401(k) plan assets among pa 1rticipants in their sixties. 2018 8,162 4,486 Account balances are net of unpaid loan balances. Thus, unpaid loan balances are not included in any of the eight asset a ppropriate target date fund (see Holden, VanDerhei, and Bass 2021). For an analysis tracking target date fund use and the 2020 , 59 percent of 401(k) plan participant Mo s in nth -e the nd lE eB veRI l, /I DC eI c e 40 mb 1( erk 2 ) 0d 0a 7t a tob D ase ecehe mbld er t2 a0r2 g1et date funds and target date I A N nt s a or te od :c A ruc oss cc tion o usect n t................................ ba io la n, ncor es sn area p pa sh rtiot cip , aof nt................................ t ahe cc oe unt ntir be a la pn op ceula s hteion ld i n................................ o 4 f 401 01(k)( p kl) a n psla an p t tha er p tic aripa tic ................................ ip nt an s, t ts’he cu rd rea ntta e bm ase ployinc ers ......................... lu ad ne ds a 40 re n 1( etk ) o f plan 4 in b at ya ela arnc -ee nd d fun 2020 ds, . On largaevly e rtaagre g, eov t de art e the fun pd as. 401 st 25 y (k e)a rps, a ra tic mipa ong nt s’ painv rticeipa stm ntes w nt in c ith lo om ans pa ny out st sto ac nding k con, tinu about ed a 13 t his petror ceic nt a lly of 20s 41.1% 1 to1 1 .1 0% 1.2% 1.2% 29,375 0.8% 0.7%150,460 0.7% 0.$ 51 % 6,721,40 1.0 6,% 129 0.6% $111,13 55 1.4% >2 tTa o 5bles and Grap3 hs 6. 31975–1 20 .419 (Ve1 r.si 1on 1.0)1 . .3 Washingt 1o .0n, DC: US 1.0 Depart 1m .0ent of L 0a .9 bor, Em1 p.loy 0 ee Be1ne .1fits Sec5 ur 4.it 2y inf 50s ormation about: 21% 6% 25, no. 14 (Sum 996 1m 99e 9r): 67 200 –2 69. A 20 v0a 7ilable 20 0 a8t ww 2w 01.0groom.c 2012om2 /wp 013-cont 20e 1nt 4 /up 2loa 015ds/2 201 0169/05/ 20Qua 17 lif2 ie 0d 18 -Plan 2- 0C 19 hange 202 s0 -Within- of 8 0.4 million participant account 2019 s that were mult6iple ,S 95 iz 0 a ec o cfount Accs ow ount ne Ba dl a bn yc si engle 3,34 3 individuals. This procedure allows EBRI ICE BofA US Corporate Index. Atlanta: ICE Data Indices, LLC. • Ownership of investments in equities is widespread among 401(k) plan participants. Overall, 94 c l o a Be a te nc g sa o . us rie Re es t i ro d ef m ethe secn rib 80 ts e se a d c vha . in gng s h ee sl din inthe pla n cs ro a sts p s re ev cition ous s e,m cp olmp oyea rs ring or ra ov lle ed ra og ve e ra ic nc to o un IRA t sb a ala renc noets i na cclu ro ds es d .different year-end cross- persistence of their use from 2007 through 2009, see Copeland 2011. For an analysis of target date fund use among defaulted funds were 31 percent of 401(k) plan assets. Not all participant 2 s are offered target date funds—among participants who 30s 37.4% 11 to 1 .2 95 % 1.8% 1.9% 18,697 1.4% 1.2%312,081 3.1% 1.03 % 0,480,40 14 .1 ,3 % 37 1.3% 97,664 89.9% t phe ar tric eipa mant ini s w ng Peho r acceca n ount rte a g ye oung b oa f la Anc ca cnd e o urn e those tm B aaine law n dho c e unp Ia nrv a eeid. s ne te D w dOL itn o E d tq he F au tia g iir t iu indic e jrob s e 2 s, a ates w tha etll loa as old n am erount parts t icipa end ntts a o b nd e a those negligib who le ha por ve tio bn o een f >5 tlow Fi o g 10 ur le ev A els 2, . E Four BRI /I 3 p8 C e.r 2 Ic 40 ent 1( of k 2). 2 40 Da 1( takb )a 1 a se .ss 7 e Rtes w preesent 1 r.e 8 inv s a e st Weide 1 d. 4i n com Cross pSe 1a .3 ny ct ion o stock f th 1 .a 2te y 40 ear 1-(ek 1nd .)1 U 2020 niver, se 1in line .3 ................................ wit 1h r .5 ecent y 48 e.a 2rs. . 17 60s 13% 6% Administration (September). Available at www.dol.gov/s Pe itre cs/ ent dolg age ov of /f ile Ps/ ee rc besa nt/r age esea ofr chers/statistics/retirement- 401(k) Plans Draw in Ma 2020 ny Younger Retirem 7e ,5nt 60 Savers and New Hires ................................ 4,020 ............................. 4 t he-BipartisanBudget- 1Ac 77t ..p 7 d0f..1 0847 10.8473 a Snd 4 o8 ur 0I cC eI : T ta o bb ue lag tiin t onso fro cm onsoli EBRd I/a IC te I P a acrc tiount cipan tb -D aila renc ctee ds for Reti re indiv menitd P ua lan ls D aactr aoss Co lld ea ct tia o np P rov rojide ectrs to provide a more accurate percent of 401(k) participants had at least some investment in e 21 quities at year-end 2020. 40s sectiona4 l 2s.na 4% pshots 3 .c 1a % n lead t 2o .6 fal %se conc 2.5 lu % sions. For 1.8% examp1 le ., 5 % newly fo 1rme .4%d plans 1. 2w %ould te1nd .4% to pull 1 d.o 7w %n the av 4e 0ra .3% ge and noM ne -d di ea faul 28 n 2 te 6d t o401( 50 k) plan4 p0 a1 rt(ic kip ) P ants art,1 i c s 0e ,i9 p e9 a 6 Mitc ntsh e Rlle a p nd re Ut sekn us 3t9 a 4 2012. , 5 R 7a 9n ge of Job 35 T ,3e 7n 4,u 71 r1 e,s 020 89,652 14 >10w 33 toe r 2e 0 offered tar4 g4 e.t5 date fun 4.1ds, 68 3p .0ercent he 2.6ld them 1 a.t 9 year-e1 nd .6 2020. 1 .5 Target d1a .4 te fund a 1.ss 7 ets rep 2r.e 3sented 3 36 5.7 with their current employers for many years. These annual updates of the database provide snapshots of 401(k) plan p Thi lan a s sh • ss ae r11 e tIs. nv ha .5e s m s tfa ill mlle ion 4 ent n b O01 y pt 81 i(on k) s p p e O la rfc n p fe ernt ea d rsi tby inc cipa e P l19 nt ans, in 99, when compP alny ans stock acP cou artnt icie pa d nt for s 19 pP ee rc rc ee nt nt of age a ss ofe A ts. sse ts Altogether, Th Noe te c : ro Ats s y-esa erc -e tional nd 20 a 2na 0, ly ths eis a v fo N eo rr a te this g:e A a vp c ec ub ra og u lie n c ta a tion b na dl a m nfo e cd e un i a a n d m 4tha o 0n 1g (t k a c ) lo ll ons 1 a1 no . 5 a li d m m a o iting lu lio nn ts the 4 a 0r1 e ( multi k c) a lp ca ur p lta le ic te i p a da ca n cm to sun o w ng ts a s a $c8ro 7,s 0s4 0 a; ma thejority med ia on f the b Int ulleertna ins l Re /prv iveanue t>8 e 60 -0p S p ee e ns rce r1 v ion 6 ic n9 te .-9 . p19 la 0nbulle .81 >6 100 3 . 7 t“ o 1 N t 8in ot 0 1 - 0 ic phis e .e 3 rce 7 tof 1 or n 1tP icraop l-tose >4 ab0 le d to s 33 Rule - 6a0n p de -Ma rce gra n kp ting, hs.pC >2 defr . 0 t a toin C 40 pa esh rce or nt Defe >0 rr e tod 2 0 A r prea rce nge ntmentZs Und ero er 460 50s 42.0% 4.0% 3.0% 2.8% 2.0% 1.8% 1.6% 1.3% 1.5% 1.7% 38.4% e Fist gim ure a tA e3, of Sna av 5e p 1r sh a to g ot e 10 a 0 of ccY ount ear- E bnd alanc 40e 1( s p k)e P r7 la ,indiv 1n Ac 70 idua coul. nt Balance5s0 ................................ 5,800 40,693................................ ,968,376 80,45 .............. 5 18 40 acc1( oun k) t Pb a a Mor rla tic nc ipa ee 40 nt but 1( s’ k w A)o c p c uld ount lan p tell a B us r P a te ic la rno ipa c nc ething n ent ts Te ag s he e a o nd b f ld o ac ut te to i q vc e Ris uit o 4 ns 0 ie e1 is s a (w k te )it ntly t p h P ly ae n a a p p rra a t-rticip ic re tind ipa cipa nt a 2n ting 02 ts A 0 t g b e y w ha y o ae rk nd n b ae rsrs Te e o 22 .for f nur S te imi e nu etla r he e ................................ rly , 2 fin ,0 2 the 0 anc aia gg l ma rega rk te e ta v ce ris ra ................. is g e ( yaeca cro-un end t 6 >20 to 30Years of Tenu 49.r7 e* 6.4 3.9 3.2 2.4 2.2 2.1 2.1 2.8 3.8 21.4 15 p ercent of the assets of plans offe particirping antssu wc ith funds h 401(k) in t loanhe s a ir t y inv eae r-st enm d.ent lineups. 20 account balance was $17,961. Account balances are participant acco2 u0 n2 t0 b a ElB an R cI/e IC s Iheld in 401(k) plans at the participants' a ccount • b 76 ala ,507 nce s, em ap ss loy ete a r-lloc sponsor ation, ed and 401( loa kn ) p ala ctns ivit , yhold acring oss w ide cross sections of participants. Howeve EB r, R the I/IC cIr oss ana -lysis e pro q 4uit 4 v0 id ye secu rs to rthe itie ss— ing eq leuit ind 8y 6 .i2 fun vid0 u d .a 0 s, t l 5o 26 w he 2ning e 5q .2 uit 6 the 1y 8m 7por retsion o ultedf b in aala n nc ov eedra fun ll inc ds, rea sa end of c 2. om 9 p pe arc ny e nt stoc in k the —r e av pe re ra sent ge 401( ed 69 k) p pe larn cent of Em Targ ploy ee t ed a Bte ene fufit nd Re s asea re orfte ch I n ns usteit dut ae s. the 20 18 de. faul “Hit st inv ore ys of tme 40 nt1( in k)a uto Plans ma: tic An U enro pd llme atent .” p Fa last ns Fa and cts in (N po lavns em ’ inv bee r)s.tme Want sh li ingt neup on, s Employee Plans.” Federa 2l R 019e g Fo isrtm er 546 50, 0no. 217 (November 10): 55544–55549. Available at 60s 42.6% 3.9% 2.8% 2.6% 1.9% 1.8% 1.6% 1.2% 1.4% 1.6% 38.7% >30 56.2 7.7 4.4 3.4 2.6 2.3 2.0 1.6 1.6 1.5 16.6 0 to 2 6% 13% b alance w 20 ould 07) te , a nd nd to m b ost e p ha ulle dd t he dow m n aif jor a it la yrg of e tnu hemb ir a ec r co oun f patrticip s inva en st ts e d re in e tired q.uit ies. For example, nearly 80 percent of (percent of partic S ip oa un rc ts e): Tabulations from EBRI/ICI Participant-Directed Retirement current employers and are net of plan loans. Retirement savings held in plans at previous employers or rolled oveo r fi n ytear o IR -e An sd a r2 e0 20 420 Equity 40 , bond, money, and/or balanced funds 61.7% 25.7% 23.1% 271.3 0.16561 16.5609 Figure 9 US sect Ma D iona eny pa lr Fa a tm na ct eor ly ntsi s A of s is ffLe a no cbtor t40 w , 1 E e(m ll sui k) p loy Ptaered te ic tipa B o eane nt dd s’ fit re s Se Ass ccing ount curtit he y B a A qla ue dnc m st ini eion sst ................................ r of ation. the 20 im2 p2. actP of riva ptaer ................................ tP iceipa nsiton ion in Plan: Abst 401(k) rp a ...................... la ctns of ov For erm ti m 550 e .6 0 a 40 cc1( oun • k ) t pb la $1 an p la .0 nc a te rrill .t ic Th ion in ipa is nt sta s’ atis ss ass tic ets. est ho s auld t y e ba er inte -end rp 2020 reted ( w Fi ith gur ca eution 6). , as it may not represent the total 401(k) assets owned by All( Fi D sC g e: e ur E P em la A n 4 p4, 1 loy S .2 p A % e oge ns e B o Ce r om ne Cou 2.9 fit p% osit nc Re il ion sea of Ame 2of r.c 3h I % Se ric ns le ac t2021 it te u 2d t .2 e 40 % .) .A 1( At va k y ila )e P 1 a bla .rle 6 -e n Ac % nd at w 202 co wunt 1 w 0 ., 4 .e % 67 B ba ri.o p laenc rrc g1 e e /do . nt 3 C % a c ots/ f eta g dor e rg fa ie 1 eult .t s 1 % d ................................ -a sour te mcutu e 1/f .2a a % l stfu fand ct s/ a 1s .ff 4 s- % e318 ts..................... w -k e- re 44 0y h 3e .e 3 ld a % rin - DC 19 101 to 250 5,403 Figure8 A 46 5 ,736 63,594,978,536 75,106 Allw ww.govinfo.gov 41 /c .2ontent2 /pk .9 g/FR-2 1981 .3 -11-1 20/ .2pdf/ >FR 30-1 19 y .6 e8 ar1 s-11-1 10 .4.pdf. 1.3 1.1 1.2 1.4 43.3 >2 to 5 15% 12% Investment Options Plan Da1 ta Collection Project not included. 14.7% 400 participants in their twenties had more than 80 percent of their 401(k) plan accounts invested in equities at Of which: 9 ta 3r3 g.e 1t d0 a.t5 e6 f9 u5 n9 ds5 6 a.r9 e5 a 8n 9 option 52.3 23.0 20.1 9 Few 401(k) Participants Had Outstanding 401(k) Loans; Loans Tended to Be Small 4% A C the r nnu Tab oss ind ula a 21% sect l Re ivtid ion u ions pa s or l. o 2tTh 5 f sc 1 . the ha e W to imp nge a 5 Ssh 0 urve 0 a ingt in c ct yo on, o fo f m ac Con p D cosit oC un s : um ion fr US t ce o r D ns Fi e om o p na li 2ad , r 2 nc y a t3e m tion 4 eas er nt re tvo a vof e rie ya eL l d aa tha rw b b o itte rh , c 58 a the Eus m 7 p7 e e p p 6 rc loy ,a t5 he e rticip 9nt e 1 esele o B a 2 f e nt’ 0 tra c ne .1ts % ion o d fit a itg ion s Se e f d 5 a a8 nd l c ,a IR 1 ur 6 tte a A 1 it ,n y 2 p a ur 4 r sA ov 2 se d ,e 3 m ide tw 6 s4 ini ith in rs st 2019 the a ra nd t ion. curre sa res m A ulte 7nt p 4 v,le a 8e d ila 9 mp of 3fro ble loy p m la a e ns tr . plans (see Investme Te nt nComp ure C ao ny m Ins potit sute itio n 2022) of S . e Cl le ark ct e 2022 d 40 re 1p (k o) rts P ltha ant A 56 cc po erc ue nnt t B oa f lDC anc pla e ns C a in te the go ir rire es co rdkeeping system 5nov18 >5.p tod 1 f. 0 >20 to 30 years 22% 0 to 2 years 10% Figure 7 19% Sou D rc ee fin : T it aion o bulatif 401 ons fr( ok m ) P Ela BR n Ac I/ICIc P ount artic iB pa ala ntnc -Die re ................................ cted Retirement Plan Da................................ ta Collection Project ....................................... 7 380 20 34 17% 16% Equity, bond, money, and Pe/r or ceba nta la ge nc of ed A fun ccou ds; nt Balance Invested in Non-Target Date B 16% alanced Funds Figure A5, yea Te r-nur ende 20 Com 20, posit up fr ion om of leSe ssle tha cte n ha d 40 lf of 1(k)p P ala rtn A icipa cc nt oun s in t t 15% Bhe ala irnc tw e e 15% C nt atie es a gortie yse a ................................ r-end 2007. ................ 19 I nvestment optio 14% ns are grouped into eight broad cate14% gories. The 2020 50E 1 B to RI 1/I ,0C 00 I data Pbearse ce nt cov age er s of19 1A ,2 cp 2 c6 e ou rcnt ent B aof la S nc e the le e c tIuni e nv d 8 e v y5 s e e6 ta r e ,se r5 d s4i5of n N aon ctiv -Ta e r40 ge6 1( 8t 0D k ,8 a )2 te p 1, la 8 B4 n p a2l,a 5a nc 2r8teic d ipa Funt nd s, s13 71p ,0e 0r8 cent of 13% 13% 13% 10% 18% 30.1% w Th ro us Int w lling e e o w r v la na .d > erg a rs 1ol.g l Re 0 e g fro s tiv o t ov e v inc m 2n p e 0/a nue e re mp g ra ov es nc loy S eide s eie re in v rs/ r ic -v a s e e a v p b . r e o sa y ra 20 n P s a /g e o r 20 nd re e re c sea e a . d n b cRe tc e re ar o c g c tun tire a e ir he us e o t r m me fe b s/ p a e a 40 st la nt nt rta inc 1( c p tP iis p la e k la a t ) ns o ic n ns c tp s/ s .c a urre FA w rre t 26% iic ttQs h ir ipa d a e c m a R nt c mo e e og s j u nt n a ng - toin o r b d b o ull ing ald lae e n rt H r cins le e p as a a r/pr v d rticip in e sh s iv p ip pa la e atcns nts D eif-is ie p . t d e w r Ins ibut rith n a an ion gfions d e ed s -w p ,it e 7% la 2 ion, . r 0n A 2 y.v 0 e a a the ila rs b od le f ate ta anu tb arse e. For cont ea xa ins mp only le, in 2021 offer automatic enrollment, up from 54 percent in 2020 and 41 percent in 2015. 360 2 Target Date Funds' 401(k) Market Share 35.1% and GICs and/or other stable value funds 36.6 52.4 48.6 Age 1,001 to 2,500 810 1,234,718 93,616,648,803 75,820 40 •1( k)T P ala rg n Ac et d ca oun te tfu Bn ala ds nc co es Va ntin ry u e to Across be a Par nt often icipants - u ................................ sed investment op ................................ tion among 401(k) p ........................... lan 7 >20 to 30 25% 5% plans, and 15 percent of 401(k) plan assets. The project is unique because it includes data provided by a wide Fe deral Reserve Economic Data (FRED). St. Louis: Federal Reserve Bank of St. Louis. amo 340 ng participants 0 in their sixties with two or fewer years of tenure, the average account balance increased 6.3 percent with t w he w w a.ir ccs.go ountv b /ra ela tir nc em es he ent-ld pla in t ns/he re t40 ire1( mk e) nt p- Pla p ela ns rcns e n a- tta fa g pq e as r o -tfric e to ipa g ta alrnt d 40 ing s’ 1(c k-ur )ha m re rad nt rk sh e e tip ,m y -d e pa is loy r-te re ibut nr ds. ions (updated October 5, 2022; Fi gure A6, 401(k) Plan Assets Are Conc 1 entrate 4d 3. 7 in Equit % ies................................................................ 43.5% ..................... 20 Yea10 rs of Tenure Zero163> 80 .2 to 10 >10 to 20 >20 to 30 >30 to 40 >40 to 50 >50 to 60 >60 to 7014 >.6 7% 0 to 80 >80 to 90 >90 to 100 21 Years of T e n O ufre which: target date funds are an option 32.6 43.4 41.0 Grou p At yeaZ r- ee rnd o 2020 >0, to 3 1 p0 erc> e1 nt 0 o to f 2 the 0 > p2 a0 rticip to 3a 0nts >3 in 0 tthe o 4 0da> ta 4b 0 a to se5 w 0 e> re 5 0 mis to s6ing 0 >a6 0 b irth to 7d 0ate >7 e 0 ntry to 8,0 w> e8 re 0 y to oun 90ger > 9 tha 0 tn o 20, 100 or Se • e FigE ure quit s y 7 fu and nds A7c.ons ist of pooled investments primarily invested in stocks, including equity mutual funds, 48.0% bank >30 48.5% 1% 17% 3% participa Pn erts ce.n A tatg y ee o afr - Ee lind gibl2 e02 400, 86 p 1(k) Pare tirccip ea nt n tof s W 40 ith1( Ok u)t sp ta la 3% nns din , gc ov 40e 1(rk ing ) Lo87 an spercent of 401(k) plan participants, 320 US Gve ane rierta yl Ac of c pount lan rie ng c 1or 0Offi 0d or ke ce Fe ep . e w 19 re sr 97 and, . “40 the 1 1( 0r k 1e )t for o P e 5e ns 0, 0rion ep rP ela sent ns 50: 1 s t L to oa he 1n P ,0 a0 c0 t riv ov itis yions of 1,0 p 0 a E 1r nha ttic oipa 5 nc ,0e nt 0 0P s ain 401 rticipa(> tkion b 5), 0 p0la 0ut ns Ma of y v aArff ying ect 4% 51.9% the consolidation of their multiple accounts. Among participants in their fifties or sixties with more than 30 years of tenure, the 0 toa 2ccess 40 ed 1( Oc k) tP ob lan Ac e 9r2 .17 9c, oun 2022 t4 B .0 )a . lances Te 0.5 nd to 0 Ris .2e with P 0.a 1F rtiic gu ipa rent 6 0 .1 Age and 0.Te 1 nure ................................ 0.0 0.0 0.0 ..................... 2.0 8 20s 88.7% 3.0% 05 .6 4% .9% 0.3% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 6.7% >30 E qu 2,5i0 ty 1, tbo o 5 nd ,00 , 0 money, and/or balanc 295 ed funds; 1,027,262 90,060,422,509 87,670 12% were older than 69. They were not included in 20 0 this 7 ana 20 ly 1s 2is. 2017 2018 2019 2020 collective trusts, life insurance separate accounts, and other pooled investments. 300 Number of Plan P 10% articipants Fi H 22old gure 1 en, tA o 7, Sa 1 inc 0r D lude ais h, 1 t1 r St ibut d t oe t a 2 vion o r 5 egn B et2 6 d f 40 a a ss to te , 5 1( a 0 fun nd k)5 d P 1 C s in t la r to a ns ig 10 , he C 0Pop a 1 irr 0 te 1 inv ic la tipa ond. e 2st 5 n0 m t20 s, a 2e 5nt 22 1 nd t a o lin . 5A e “ 040 ss up. 0 e 1( t 5s b Ta k 0) 1 r y P tg o la e Inv tn As de 1a ,st t 0set A e 0 m 1fun e tn otllo d Op s w 2 c,a 5tte 0 ion ion 1 re ts, 202 o , 31 Ac 5 p c,ou e 00 r 0c 1 nt ................................ e tnt o B a of la >1 nc t0 he ,e 0 0 s, a a 0ssnd e Atls in t l L Poa lann he s.. 21 Re Inctom irem e e Se ntc ur sait vings he y for Som ld in p e.” L la ens tte a r tRe prp eor vious t, G A eO/H mploy EHe Sr-s98 or -5 (Oc rolled tob oveerr) . int Wo ash indiv ingt idua on, l r De Ct: irUS eme Gnt ene ac rc aoun l Act cs (I ounRA ting s) Of are fic not e. >2 to 5 sizes—from 9 v1e L.o r 7y a nla ars g e a 4. P 2 cor erc pe on ra ta 1tg .ions 0 e of t th o esm R 0.e 4 a m ll b ainus inine g 0 4.0 s 1 1 ses (k)— Plw an it 0 .h a A 1cc o vu an rie t B 0t.y a 1 la of n cinv e e0 st .0 ment op 0t.ions 1 . See 0. 0 the appe2 n.d 2ix a v e Sra eeg Fi e g aure ccos un 6t abnd ala A nc 7.e A inc vre era asg ee d A 3. s0 s e pe t rc Ale lo nt ca wtith ionthe of 4 co 0n 1s(o kli ) d P altion an A oc f cthe ouir ntmulti s byp P lea a rtcic co ip un an tst. A ge 30s 88.9% 3.6% 1.1% 0.5% 0.2% 0.2% 0.1% 0.1% 0.1% 0.1% 5.1% a 5 nd ,00 c 1om to pa 10,ny 00 0 stock 12% 164 0 1.,6 153,282 10.1107,196,590,565 9.7 92,949 >20 S itz oe 3 of 0 Account Balance 86.9%86.8% 280 86.5% 401(k) Participants’ Asset Allocations’ Continue to Skew Towar1 d, 0I0 nv 0 estm 2e ,5nt 00 in Equit 5,0ie 00s ................................ 10,000 ............. 9 86.3% • Bond funds are 9pooled accounts primarily invested in bonds. 1 >5 t11 o 10 91.1 4.2 1.3 0.6 0.2 0.2 0.1 0.1 0.1 0.1 2.0 Activity in 201 EBRI/I 9.” CI I40 CI1( Re k)sea dartc ah P base, erspe a 1nd ctiv 59 e 28 pe, rcno. ent 4, a of 40 nd 1( EkB )RI pa Irss ticue ipa B nt rie s in t f, no. he 55 da7 (Ma tabase y). he Ald vaila tarbgle e ta d t ate funds. Also Percentage of account balances, 2020 40sA inc Inv v At a lude e ila for st yb e m d a le 9a e r 0 - d in t nt .a e 8 d tnd % it C he w iona om w 2020 P a lw a p na ln . a 4 g d , s .ny ly a 4 e 22 o. % tsi aIs. g il on ns pov e trc Fu i/a te u t 1 rs nt he tt .sets e 5 he % . oE Qua r f B m /h the RI or erhs /I e tp e 0 , C a - r .a 7 rticip I 98 ly % c40 c Supp -ount 5.p 1( ants k d)le f 0 b . p m .in a 3 la la % ethe n d nt nca e a d rs a ty a a ta 0 b D r .a b a 2 ese a % t a ne se . ( tW Fi w of g e aur rsh 0 e unpa . e 1 ingt mis % A1) s ion, d ing . loa D a 0n C .d 1: a b % te I anv la onc e f st hire e0 m s. B .1 e % e nt e ntry cC aom us and e 0p . 1 a of % w ny e a re llI ns t he no tittse ut 1inc .7 e fa % .lud ctor eds, it in >10,000 137 4,203,867 400,920,289,578 95,369 Of which: target date funds are an option 0.4 9.7 9.0 260<$10,000 8% 32% 23 34 >10 to 20 78.5% 77.3% 36.9% Figure A8, Asset Allo 7c 7a .8 tion D % istribution of 401 77.8 (k %) N u Pm ar bte ic ripa of P nt a rA tic cic poun antst iB na Pla lanc n e to 18 B.1 a% lanced Funds by Age ................... 22 Fi This gure 7 s 8y . 4 A8 s% tem also of hig clahlig ssifihts cation that do Ind es iv no idt uc ao l ns 401( idek r )the particip numb ants er o ’ f as dsis etinc t allt oinv cation estme to nt bao la pnc tions ed fu pre nd ss e nte varie d d to w ai d geiv lye n aro pa un rtd ic ip an ant >10 to 20 89.3 4.6 2.0 1.1 0.4 0.3 0.2 0.1 0.1 0.1 1.7 • Balanced funds are pooled acc7 oun 7.3% ts invested in both stocks and bonds. They are classified into two Percentage of plans 21% 21% 21% 50s 89.7% 4.6% 1.8% 1.0% 0.4% 0.3% 0.2% 0.1% 0.1% 0.1% 1.7% www.ic Young i.or know ge /s r y n a 40 stA e 1( s lif lm lk/f )e ile P cy la s/ cn P le 202 fun ar2t-ic d05 s, t ipa /pe he ntr s Te se 28-fun 7 04 nd 6,.p 5 dt 0 s a o d 7fI rnv a end e dst ew si in Equit w gne w.d e b 1 tro 1 i.or ie ,offe 4s Mor 6g 1/c ,r 9 2 ont a 3 e dTha e ivnt er/n O si 40 fied 1( ld 9e k) 9 p 7 r- ,o 40 p 6r4 la t2 folio th 1( n ,5 -k 0 a)8 ss ,P 7e la 4a t4 n P -ta a lloc ut arom taic tion ipa ati- nt c 8a a 7c s ,lly 0 c .............. oun 4 0 reb ta - lanc 10 es is th is not a$ na 1 cor 0 ly ,0 s ris 0 E e0 qu c . tt o itt o y $,2 p 0 bo r,e 0nd su 00m , m eon tha ey t , ta he nd c /or haba nge la nc in t ed he fun av ds e20% r;a ge or median account balance for24% the datab 22% ase as a whole 240 74.0% 401(k) Plan Account Balances Tend to Rise with Participant Age and Tenure >5 to 10 3, 4 72.4% 20% >20 to 43 00 1(k) Loan B 1a 0la 0 8n 7c .5 es as a 5 P .1 ercent18% ag 2e .6 of 401(k) 1 P .6 lan Accou 0 n .6 t Balance 0s . 5 for Partic 0i.p 3ants with 0 .4 2 01(k) Loa0n .1 s by Plan0 S .2ize, 2020 1.3 a bv ut era rag the e or f the 35 p ty ep rc ee s nt of aot py B tions e aa 2019 la r-nc e p nd e re d F s o 2020 fe un rm nte ds 5d 5 (.0 Fi 0 P gre ure limina A6)ry . For rese exa arc mp h a lena , 33 lyzin p Ge Ig C rc s 1. e4 nt a mil o nd f lip oan rticip partici antpsa nts held d no raw bn alfro anc m ed the fu nd 2000 s, while 49 >10 to 20 ye 2ars 28% 60s 88.6% 4.6% 1.8% 1.1% 0.5% Fig0 u .r 4e % A12 0.2% 0.1% 0.1% 0.1% 2.4% Y Inv ahoo estm Fiesu na ntb nc C ca om et. eSunn g por any iey s: t I vns ale atri, tgu C etA te 6 : . d 9a Y 20 .5ta % e22 hoo. fu . nds “ The and USnon Ret– irte am rge ent t d Ma ater kbeatla , Se nce cond d fun Qua ds. rter 2022” (September). Available at 220>$20,000 to $30,000 23% 23.8% 21% Fi gure A9, to cA om bss e pa e m t or ny Allo e s foc tc oc atk us ion D ; e ad nd on is G tr Iinc C ibut som a ion o nd e /ov or f 401 er tim (k)e .P articipant Account Balance to Balanced Funds by Tenure .............. 23 67.4b % alances-and-loan-activity-in-2019. reflects the experience 19% of “typical” 401(k) plan participants. (See About Changes in A 19% ccount19% Balance 19% s on above.) 401(k) Plans Draw in Many Younger Retirement Savers and New Hires 12 >2 to 5 >30 Age Targe Etqu Dia tyt e 8 5Fu .Ta 4 nds rget C D 5ont a .4 teinu Non e- Ta t2o .r7 ge Be t D Paop teul 1.a 6rB ................................ ond 0.8 Money 0.6Othe................................ r S0 ta.4 ble Com0 pa .3ny ................................ 0.2 10 0.2 2 M .4 .... em o: 10 22% The positive correlation between tenure and account balance is expected because long-term employees have had more time AllEB perc RI/ ent ICI 408 1 o9 (f 401( k .4 p ) % a Prticip lk a)n dC a a4 ha ta nts .1b r % a ahe s ce te ld s r ug im st1 io g c .4 re e s% s by ts tha tha Pn la80 t n 0the .A 7p % se ss rc ehe te snt ,e 2 r 0 0 o nu 2 .f 3 0the % mbir er ao cf c 0o inv .2 un % ets stme in b nt 0 a.la 2o% nc ptions ed fu p 0 nd re .1s % s eante t th de d 0eo .1 nd e % s o no f 2020 t influe 0.1( % Fi nc ge ure pa A8) rticip 3.4 . % At ants ye.a r- Age and account balance are positL ivo ea lyn cs or F re ro lam te d 4 0 a1 m (ong k) P p la an rts ic T ipa en ntd s c ed ov te or e B de b S y m the al l2020 database. Smaller 401(k) 18% 200>18% $30,000 to $40,000 18% 18% 24% 18% 18% 18% otheo r stA abl ta er g va eltue da ft un e ds fund pursues a long-term inve 1st .2ment strateg1 y1 , .us 8 ing a mix of ass1 e8 t .c 6lasses, or asset www.ici.org/research/stats/retirement. • 401(k80 ) plan loans are widely available but rarely taken. At year-end 2020, 84 percent of 401(k) plan 2, 3 59.6% 3 5 All 89.4 4.1 1.4 0.7 0.3 0.2 0.2 0.1 0.1 0.1 3.4 0 to 2 Group Funds Funds Balanced Funds Funds Funds Value Funds Stock 51.7% Other23.0% Unknown Equities 17% 1 58.8% to 40 1 1( a 8c 0k cumu ) parla tic teipa an nt as ccro eun prt esent balanc a ew . id Ho ew re av nge er, a of ro allgoev e ar nd fro tm enur a pere g To vriou oup tals s. A emp t loy yee ar’s r-e p nd lan 2020 could , m inte any rfe 40 re 1( wk ith ) A p this vla en p r ap ge oasr iti tic vipa e nts On Fi e nd gur a 2020, ve > e $ ra A 410 0 g, e 0 67 , ,0 40 p 0p a te rticip o 1( rc $ke 5)0 nt a P ,0 nts la o 0f 0 ns 401( ha ' L voa e $ k 1 ) 10. n O 8p ,9 a4 4 rticip ff 2d P eis r eing tinc ra cnts en t a ta o nd he g pe tions ld P oa f b r et a lic ib la gut, ipa inc bl24% e e nt o p d n a fu Use ra tiv c nd e ip ra s b a n y g thro t e sP , la bcug yho n Size ph a ors ta te icrg i................................ o pe nly at ntd 2. a ag te 5 e ,(fu H 20 nd o2ld 0 se a n 16% nd and no V na ................................ –nD targ erhe et d i a 2001b te bal)a . nc In ed . 24 plan account balances tend to be held by younger partic$ipa 18,nt 43s, la 3 rger account 55 .b 8 1% a 7la .2nc % es by older participants (Figure Ownersh ip Oof f wh Ta ich rg : e tatr g D ea t tdea tFu e fnds undsVa ar re ie a s w $ n1 o 7it p ,6 th P i8 o6 narticipant Ag 0e .9 $a 1nd 8,1 2 Te 7 nur 55.e 5 % ................................ 10.7 1 .............................. 7.0 $17,961 11 Holden, Sarah, Steven Bass, and Craig Copela 2nd. 8.4$ % 20 17,22 630 b. “What Does Consistent Participation in 40 $1( 17k ,5)8 P 7lans Generate? 19.1%allocation, that the fund provider adjusts to become le $1ss 6, 7f3 oc 2 $ us 16 e,d 83 on 6 $1g 7r ,1 ow 32th and more focused on 1 participants were in plans allowing 16% loans, but only 16 percent of 401(k) participants w $16,ho 010were eligible for lo 16% ans 40 20s1(k) Plan Acc 33.$ 515,24o 6unt Ba 50.2 lances5 .Va 5 ry Across 4.9 Particip 0.3 ants 1.7 0.9 1.3 1.4 84.3 16% >2 to 5 years 23.8% 1 16% 60 The analysis inclP ulda en s A ths e s e 1t1 s.5 million participaTo nts ta in l P th la e ns year-end 2020 P E ar B tiR cIi/pa ICInt 40 s1(k) databaTo se.tal Assets Account Balance >$50,000 to $60,000 25% Age gr15% oup w coe rre rela ytion oung be er c: a60 us 38 e pae ro rce llo nt v eof r cp oa uld rtic g $ ipa iv 12 ent , 6a 5s w 5 shoert re -te in t nuhe red ir etm wp eloy ntie ee s or a hig thir h ta ie cs c, oun whil t b ea la 24 ncpee . rTh cent ere of is p sa orme ticipa disnt ces w rnibele re e in vidte he ncir e fu a dnd dition, s, do the wn fro prem limina 68 p $ry e 1rc 2 a ,5 e na 7nt 8lyin sis2019. foun d Ne tha arly t 401( thre ke ) -p fifth artic s ip oa f nts 401( ak re ) p no articip t naiv ae nts —tha het ldis ta , w rghe et n da gte ive fu n nd n o sp , t11 ionp se , rc the ent y d he o ld no no t n– 1 Joint Committee on Taxation. 2006. Technical Explanation of H.R. 4, the “Pe 35 nsion Protection Act of 2006” as Passed by E A4) ndn . The $o 11t p ,e 6osit 0s 0 ive correlation between age and account balance is expected because younger workers are likely to have Changes in 401(k) Plan Account Balances, 2010–2019.” ICI Research Perspective 26, no. 6, and EBRI Issue Brief, no. 2,3 30s 38.1 incom 4e 4. 0as the fund 4 .5 approaches a 5.3nd passe 0s it .5 s target 2 d .2 ate. 2.0 1.9 0.9 82.9 The analysis includes the 11.5 million participants in the ye 15% ar-end 2020 EBRI/ICI 401(k) database. 25% 2 Fig 14 ur 0e Ow A11 ne ha, r dsh 40 loa ip 1( ns of k) out ILnv oa st en B st anding m ae la 1 nt nc 9s in . 9 a e % g s ................................ a E ins quit t tie he s I ir s C 401( om k) m p onp lan a ................................ lac ce c ount Among s, d ow 401( n fr k)om Pla ................................ y n P eaa r-re tic nd ipa 20 nt1 s9. Loa ................................ ns......................... outstanding ... 11 25 > $$ 06 t0 o, 0 $0 20 5 0 to ,0 $ 07 00,000 17,511 25% 120,024 54.5% $1,698,9314% 8,739 $14,155 E quity Funds Compa 32% ny Stock² Balanced Funds Bond IFu CE nd 34% Bo s fA US GICs and Other Stable Value Money Funds 401(k) Loan as a Percentage of Remaining 401(k) A t A artg e yte d aa r- te e nd fu An lld 2020 typic, atlhe ly r eabv ae la ra nc ge es a itc sc ount portfo lb ioa tla o nc bee c ow ma es l e$8 ss7, fo04 cu 1 0 s0 e 0 a d .nd 0 on tg he row m the a dn ia d 1n a 0m 0.o 0 c re c ount focus e bd a la onnc ine c o w m 1a 0 es 0 a .$1 0 s i7,96 t app1 ro a (Fi chg eur s a en A3 d ), of rollover 14% assets among the participants with account balances greater than $100,000, as 4 percent of them had two or fewer for ta div rg itd ie eet s (F the date igur ir b as ae s la e1) nc ts. eaA d mo not fung nd he sar,ll a 25 n n.d p Ind 2 erpc ee e erc nt d,e nt le of she s 40 tha ld 1( b n ko )1 th. pp la e n p rcent arto ic f ipa partici nts p w ae nts re fo in t llohe we ird fif a t1/ ies, a n asnd set 14 allo pceartion cents tra wete reg in t y. heir 40s 45.9 32.4 2.4 7.1 0.7 17.6% 3.4 3.7 2.4 1.0 36 76.7 2 low the eH rouse incom on es a July nd 28 to , ha 20v 0e 6, a hand d leass s C tim onsi e d to eraecd c um by ula thet eSe ana ba te la nc on eA w ugust ith th 3, 2006 eir curre . nt JC X em -38 ploy -06 e r(. AIugus n adtd 3) ition, . Wa the shy ing ar te on, less 56 12 (June). 20 Available at www.ici.or g/system/files/2022 3- 30 .96/ %per2828% -07.pdf and www.ebri.org/docs/default-source/ebri- o Non–target date balanced funds include asset allocation, or hybrid, funds and lifestyle funds. A t arget d > > a $ $ t7 e 20 5 f,u 0 0n ,0 0 d 0 0 t0 ty o 40 p t o $ ic 8 $ a 0 6 ll,y 2 0 5 0 r,e 0 0 b 0 a 0 l13% ances its po 1rtfolio1 t1 o, 5 b4 e5 come l24% ess focuse1 d6 o 3n ,0 g 7r8 owth and more 4 ,fo 8c 4u 6s ,9 e3 d4 13% o ,1 n3 i1 ncome as it a2 p9 p,r7 o2 a2 ches and Funds amounted to 8 percent of the remaining account balance, on average, a 9t .7 y % ear-end C 20 orp 20o, ra the te Isa ndm ex e³ as year-end Account Balance 20s 30s 40s 50s 60s All pass es the target 7d .0 a% te of the fund, which is usually included in the fu 13% nd’s name. Of which: target date funds are an option 86.3 86.8 87.2 b 50s ut balance4 s v 3.4aried wide 282020 .4 ly. FE or B R exa I/ICm 2I.9 ple, more t9 ha .1n three-q 0.ua 9 rters of t 5 3 he .0 8.3 p %articipa 4nt .4s in the 22020 .5 11.E 2% BRI0 /I .9CI 401(k6)6 .2 years Y ooung f tenu ere r 40 , a1( ndk 10 ) Pla pen P rcea nt rtic of ipa the nt m s H ha ad v e b e Itw nce re ea n sed two C aonc nd e fiv nt er a ye tions ars o in Equit f tenureie (s Sin see Fi cg eure the A5 Fi). na ncial Crisis .............. 12 si Bri xt gie htS s. The cope a m nd ed In ian ve a sg tme e of nt tC ho emp paarny ticipa Insnt tits in t ute 2he 022 2020 reports da ta an ba ase vera is g45 e oy f e 2a 8 rs, inv si em stme ilarnt too p prtions ior y e in ar2019 s. Bea cnd aus aen old ave era r ge of 1 Fig 10 ur 0e A12, Loans From 401(k) Plans Tended to Be Small ...................................................................................... 25 DC: US Joint Committee on Taxat 12% ion. Available at www.jct.gov/publications/2006/jcx-38-06/. lik 24 ely to have rollovers from a previous employer’s plan in their c12% urrent Inv p ela stn m a ec nt count Cates. go A rc ycount balance and tenure are pass is eFor su s te h- > d e > b $ a $ tr8 ta a 6 ie 0 r2 g ,f/ o 5 0 e,n e 0 t0 0 b d 0 401( r a 0 ti_i o t e t o $ b o 9 k $ _5 f0 ) 1 t ,h ,p 0 62 2 e la 0 5 0 f0 n u _4 , n 0 a d 01 0 s ,0 s w e kh ts -ilong c , hp ia srticip - 30 usu june aa llnts y1 22 i1 n,,c 2a .p l3 u nd 5 d def d . p la inns t24% h ethro fund ug ’sh n2 a 2019, 1 m 9e ,8 .5 1see US Depa1rtme 0,204 nt ,4 o 712% 6 f ,L 5a 9b 1or, Employe 4e 6 ,Be 415 nefits • Company stock is equity in the plan’s sponsor (the employer). 12% NotZ e e : r Fu S o en e (no d H s o iln oa ld cle u n) n, de V (m p ae u nD rtc ue a en lrhe tf uo nifd , p sa l,a nd b na s n )Ba k s cs o l202 lecti1 ve . trusts, life insuranc94 e separate ac 85 counts, and 78 any pooled in 79 vestment pro87 duct primarily 84 31.0% Note: Funds include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily 60s 2019 37., 8and we2 ll b 8.2elow their 3hi .7storical av1 e1 r.a 2ge. Loan a 1.3mounts, on 8.4 average,3 inc .6 reased 2in 202 .8 0, but 1.0 remaine 5d 3 6 .0 2.7% 3.8% 9.1% d at80 abase had account balances that were lower than $87,040, the size of 11% the average ac 11% count balance. In fact, 39.9 21 investment o20 ptions when a target date fund suite is counted as a single investment option. Surveys of individuals owning participants tend to have larg7e.r 9 % account balances, assets in the database are mor 7.1 e% heavily concentrated among 26.6 t% he 13 > >$ $9 10 ,,2 1 0 50 00 , 0t0 o0 $ t1 o0 $ 02 ,0 ,5 00 00,000 11,695 24% 368,600 21,108,8211% 0,773 57,268 > a 0 ls to o p 1osit 0 pe 19iv 9 rc 6 ee 2 ly nt .4 c % 1or 99r9elat2 e0 d 0 2 among 2007 part 2ic 00ipa 8 nt2 s in t 010 he 2 0 20 1220 d 2 20 a1t3 aba 6 2.5 se. 2 3.0 % 51 % 4A 6pa 2r 0t1ic 5ipant 20 10 ’1s t 6 en2 ur 01e7 w11 it2 h a 018 n em 20 p 1loy 98 er2 0 ser 20ves 8 as a inve S 40 ste ec 1( durity ik n) t h P e Ad la sn Loa minis ecurittra ns y in tion A dirce a 2021a tW edide . Th ly e a nd A tev n a u 2021b ila re b va le ri .a B b For ut le iRa s to g ta ree n l ly e re r a Ta tire llyk me yeen a n ................................ rs t a ws os rk eits ng ( a inc t clud urre ing nt e tho mps ................................ lo ey in er 401( and tk h) u s p la mns ay) othro vers...................... ug tate h 1 y the 6e .3 a% r s s e ocf ond 12 inve s At le lBe d ic na tus hee s 401( e 4c 1u .8 rik ty ) ip nla dins ca 3 t1 w e.d 0 e.re introduc 3e .7d about 40 8 y.e 7ars ago, 0 o.ld 9 er and lon 5g .6er-tenured 3 .e 7mployees 2 .ma 5 5 y. 3 no %t ha 1.v 0e particip 68 a.t 5ed • Mone A tay rg fun et dd as c te fonsi und tst yp of icat llhose y reba fun lancd es d s ite ssi pg one rtfod lio t o to m be acint om ae in a les sst fo ac bule se sh d o anr e g rp or wic th e . a nd more focused on 10% 25.3% small relative to the remaining account balance. 25 60 2 S&P 500 percent of participants had account balances of 4.7le %ss than $10,000, while 20.4 percent of participants had account DC Joint Pla pla n > C >n - $om $ s1 2 p a 0 ,e c 0 5 m c c ,0o 0 ific 0 i0 t un ,t0 0e 0 info ts e t0 o on find t$ o rma 2 $ 0 1 Ta 6 0 2 tha ,,tion .2 0 5 xa 5 0 % 0 0 t t,ion. DC 0 o0 n 0 -lo o20 w an ing 19 pro . ind G v 1is e 3iv .ne ion 1id % 1r ua 2 s a , 3 lils s 9 E 2 a a xpla v pa pil re n ab a c 23% ia le tion o te fo tr he tf C he inv e 7 ma r 0e t8 a s,jority in Ta tme 233nt x Le oc f ho the 11g ic is e pla la atnd ns ion Ena 49 ,in c 0o 30 ntro the ,1c 3 t8 s l, 9% e a ,6 d a mp 6 nd in 3le tt y he (p inc ic 11 a lud ll5t y ing a h C 6 g9 re v ,ong 2irtua e 2 9 tha re llt ss yth a . ll e JC ir of S- > old 10e tr o 40 20 1( pe kr)c p ea ntrticipant groups. At year-end 2020, 63 per1 cent of 401( 3k) plan ass5 ets were he4ld by partic2 ipants in th3 eir S pa oru t H irc cold ie p:a tT e io an, n b u in Sa la ttih r oa e n h, s 4 0 fr1 P o(e m kt) e E prlB aB R nr.Ia /Id Cy I , Pa a 3nd r.t9 ic % ip Mic antha -De ire l Ha cted d le Re yt. ir20 em06 ent. P “4 la01 n D (k a) ta P C la ons lle: ctA io n 25 P-rY oje ea cr t Retrospe 7.3 c% tive.” 3 I.nv 8% estment Company 5.0% 37 9% 38 1 q pua roxy rte r for of ti2022 he nco le m,ngth e s a es e i Inve tof aptpim srtm oa ec ea h nt e w s Comp or ank de p ra a ha ny ss e sIns s p ta h tit r et ute ic taipa rg 2022. et te dd a tin e For otfhe th ae 40 d fis un 1( cd us k , ) w s io h pila n chn. o if s tre u Sm snd uaa ls ly lle b ie n rc tw 40 lue d1( e en dk i) d n e p tfine h la en a fu dn c b dc e ’s ount ne na fit m ( e bDB) .alanc and es t end in 401( • k) St pla ab ns le fo va r lue the ir pre od ntire uct s, suc careerh s.a Th s g eua Re ra ve nt nu ee ed Ac inv t o ef st 1978 mentc o cnta ontine racdt s (GI a proC vs is)ion a tha nd tot bhe eca r me sta b Inte le v rna a 1lue 6l .1R % e fun venu ds,e Cod are e 40 0 >5 to 10 years Minor investment options are not shown; therefore, components do not add to 100 percent. Percentages are dollar-weighte 19% d averages. 1 •40 1( Tk h)e a Pla vn Loa eragn Ac e 40 tiv 1(k ity 2) p .5 Va %lan ries w acit ch P oun art ba t 3ic .4ipa %lan ntc A e ten 4g .7e % , Te ds n to ure , in ac nd rea Ac sc e w ounit t h B par alanc tiec ................................ ipant age and tenur........ e. For 13 8% >$6,250,000 to $12,500,000 5,505 677,592 48,060,818,622 70,929 8% Sou> the rc 2e 0: ts T o ma > a3 b $0 u 2 ll l0 a pe p 0 t2la i,o 0 rn c ns 0s e 0 ) nt f.r oS m o me EB R pIla /IC ns I P w aithou rticipat nthis t-Dir e info cterma d Retion tirema e 16% re nt c Pla las 1 ns ifie Datd a a Cso lha lec 2 vting ion P a ro loa jec n t p 2rovision4% if a2ny participa1 nt in the pla2 n has b 2 pP la - a19 e la n rcnc o e(ff n Oc e te as g g rs te ob sr a e a e g a rr eo t e 31 d or o d ll) ta li ha .r ne -W wn $100 e up a igsh h o te ingt f d in a ,000 v v on, ee ra sg tme e (D Fi sC .g nt : ur US oep tions 4 Joint ). The . C Se om v ea H m ria oit ld ttion in e ee n on et a aTa l. cc2022. xa ount tion. ba A la 3v .nc 8 a% ila es p blea a rttly reflects the effects of participant 23% 12 3.6% I fif ns tie tit s or ute si Re xt 1 sea ie 9.s, w 2r % ch P hile er spe 13 p cteiv rc ee nt 12 , of no. 402 1( (kN ) ov pla en a mbe ss re ). tsA v waeila reb h lee ld at b wyw pw a.ic rtic i.or ipa gnt /pd s in t f/pe hre 1ir 23 -t .02 9 w % e.p nt die f.s or thirties. GICs are gu 1a .5 ra % nteed investmen 2t. 5 c% ontracts. 1.8% 2 to b 20 e held by more re1c0e0nt o rhir Fe ew s, la er rger b 1a 0la 1 nc toe 5s b 022% 0y longe 5r0-1 te tnur o 1,e 0d 0 0participa 1,0nt 01s t1 o (7 Fi 5 .7g ,0 % ur 00e A5). >5,000 S de efine ction d 401( contrib k).ution The la (DC) w w p ela nt ninto s, se e eff P eo cte t o rb n aJ,a V nu enti, ary a 1, nd 1980, Wise b2007; ut it w H ao s ld no en, t un Bra tild No y, v ae nd mb H ea rd 1981 ley 2006; that p Br ro ap do ys a end d re Bog gula da tio n ns 2010 0.6% Not all parti cipants arre e p ofo fe rrte ed d th ais one s inves c tm ate eng t or opyt. io n (see Figure A7). >$12,500,000 to $25,000,000 34% 3,053 770,166 2.9% 53,285,232,572 692 ,1 .28 % 7 Wha exa t’m sp I lens , atide yea r-end 2020, participants in the2ir .0 for % ties with more than two to five years of 1 73 .5 .2 % % tenure had an > 230 to 80 percent 0.9% 1.1% 2 3 4 3 2 3 1 12.2% an outstanding loan balance. Th 10is .9 % may understa1 te 0 .8 the % number of plans offering loans (or participants eligible for loans) aA g e ta , rg te etnur date e , fusa ndla tyrp yi, caclont ly rer bibut alanc ion es ib tse pha ortv foior lio , tor ollov becom ee r s fr lessom foc uot sehe d orn p gla rons wth, a anss d e mto ra elloc focu aste ion, d on w init co hdr me a aw s a it ls ap , ploa roac n a hesc t aiv ndit p ya , sa snd es www 0.jc LA oa tc.g c ns o ov u fr n/pub tom bal a lic 40 nca 1( ets ions k a )r e P.h la pa tns m rti c l? Te ip fu and n nc t a = tc o d 1 c.ow o B 2u % en nloa tSm bala a dll n & ................................ cM id= es e di h52 e ald n 33 itn e& nu 4c0hk 1 re (k = :) 7 5 p23 ly ae n3& a sr a s................................ no t th_ht e pm artl= ici1 pa . n ts ’ current................................ employers and are net .... 13 Note: Funds include mutual funds, bank colle Nc utm iveb te ru r so tf s ,P llifa en i n P sa urt rain cc ip ea sn etp sarate accounts, and any pooled 3 7.7% a 35nd 2016; and Brady, Burham, and Holden 2012. were issued (see Holden, Brady, and Hadley 2006; Employ 5.e 6e % Benefit Resea5 rc .9h % Institute 2018; and Internal Rev 6e .1 nu %e Service >$25,000,000 to $62,500,000 1,973 1,055,169 75,322,524,959 71,384 GICs are gu a rTh an • e t* e T e a h d se s Ot ie n te t v he n ea u sll r r te o m is cv ea a n ttion rhe ti a cb o lr e n p e ta irsi s a th d c gtua e s tha n . e l fo rta the lr ly ot y ta e he arg rr s e inv w t od re a kst ite ng m fu a etnd nt cu s, suc fo rrelln otw e h a s m tpo s r lo s ye hift ea r l e an its st d a tfo htu e cs us fun m fro ad y s. m ov e grro stw atth e yte oa rinc s oo f me par to icvip ea r ttime ion in is th ty e pically >80 percent 6.7% 4.7% (*) (*) 1 (*) (*) (*) the target d aa vte e roa f g th ee 40 fun1( d, k w) h ip ch la in a s usc uc aount lly inc lb ud aela d nc in e th eof fun adb ’sout na m $4 e.3,000, compared with an average 401(k) plan acc4% ount 10% of plan loans. Retirement savings held in plans at previous employers or rolled over into IRAs are not included. E P H be a xa old c rt a m ic us eini ipa n, e ng Sa s nt oime n s in 401 rtv a he eh, s p t int m la De ns a e nnie (r t k a ma p )crl t o p Sc ion o y dla uha hr c ns t v a p f e ss rre b i m o , p ot ff a rah a re end ilre sent y d g in E e v a le e a a s na p nd tlw e a d n ide B t ia n loa er nur ton r hn, a enge e e sb e C ut w chis u it of no rh a itm y j ob p . ic n ac 20 d rticip ount tic e22 a nur te . a db “ e nt .D a e la e ha xp fin nc dee e r td s r a ie kC nc e eont n v ee o sa , r ut ibut ls a nd at ha loa ion m t, n. aP for ny la It n P w is a e g lia rk iv e re te ly ic ne n ipa tha a wg nt t e to s’ this gt rhe A oup co ir tmis i v,j it ob aie svion ss, e. ra I Fn is g ir e st employer contribution rates. This paper examines the relationship between account balances and participants’ age and Note: Funds includ >e$ 6 m 2u ,5 tu 0a 0l, 0 fu0 n0 N d o s to t,e b $ : a 1 T n 2 h k 5 e , c 0 to e 0ln 0 le u ,0 c re 0 ti 0 v v e a rtira ub sltes ,is l if g ee 733 n ine sru arlla yn y ce ea s rs e p w ao ra rk te in a g8 c a 7 ct8 o c ,u 8 u n 0 rtr7 s e,n a t n ed m a pn lo yy p eo r 6 o a3 ln e ,d d 3 4 tih n 6u v ,2 e s2 s m 9 tm ,a 5e y 5n 9 o t v p erro sd ta utce t prim 72 a,r0 il8 y2 invested in the security indicated. 3 Tha 401nk (k)s t pla o nA . dam Bensimhon, EBRI data compliance and IT director, for data tabulations. 39 This paper is an annual (re 1981) A *)p = fe p lrr e es ndix: e .s d tto ha n E a s B 0 .RI the 5 p /I e g C rc li Ie d 40 n et p 1( ath. k) D Ba etca ab us ase e d ................................ iscussions of asset alloc ................................ ation 9% usually focus on ................................ the percentage of the p................... ortfolio investe 14 d 2 2 2007 2020 2007 2020 2007 2020 2007 2020 2007 2020 2007 2020 Not • a ll paUnk rticipnow ants a n, re w ofhic fereh is t d this he inve fin stma el nc t a op te tio gnor (sye, ec Fi onsi gures t As of 7). assets that could not be identified. Before 2005, balanc DOL e of pm riv or ae te t p ha ens n $350 ion pla ,0n 00 bulle amtong ins re pp ao rt rte icipa d ant cs in t ount he of ir ac si tiv xt eie 401( s wit k) h mor plan e p atrt ha icn 30 y ipants e tha ars of t hadt ebnur een e.a djusted The S sa om urp cle e: o T f ap ba u rlta ic tiio pn as n tfs ro cm ha E nB ge R sI/ Io C vIe P r ta im rtie c.ip ant-Directed Retirement Plan Data Collection Project s Mit ma cll he , a ll, Oliv s US Ge ia ne S., raal nd AccSt oun epting hen U Offic tkus e . 1997 2012 fo . un “Ta d rtha gett D mo atre e Fu tha nds n 95 in 401 perce(nt k) oRe f 401( tirem k)e p nt la ns Pla tha ns.” t o N ffBeE r R Wor loans k ha ing d aP t ale pa es rt , o no. ne Plan2020 H a s c a O clf 202 ount ffe, ri43 ng 2 b Tp .” a ae la rg I rnc C c ee tI D e nt Re s t a te of sea e Fnd u the nrd cts h Re o pa inc rt Pa p ic ror eipa rta it ci se p nt (Se aw n s in t tp it s th O e fm t fhe e ere b nur e d dr a T )et . a. a rg A b For e va ta se D ila e atxa b ha ele Fm d u a n p fiv t dl e sw e , Pa w tor he w rt i.ic fe ci a pw v i.or ae n er tr s a g y H g /s e e oy a l da st rin s of ce g cm ount Ta /f t rg e ile e nur tb s/ D a2 a e la t02 ,e n inc F ce 2 u- n luding d of s par tne icipa a Tr aly rg nt eone s in t t Da- te fif he Ftu h w ir nd s As ixt ith se iets s Source: Tabt ue la nur tion e > s.$ f1 ro 2m 5, 0 E 0B 0,R 0I0 y /I0 e C a It r o P s $ a o 2 rft 5 ip c 0a i,p r 0 a t0 in c0 tip ,-0 D a0 itri0 e oc nt e ind t h Re e t4 ir0 407 e1 m (k e)n p t lP an la .n Data Coll1 e,c 0t1 io 6n ,7 P 7r 8oject 71,579,028,034 70,398 4 Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project S ource: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project update to EBRI and ICI’s ongoing research into 401(k) plan participants’ activity. The previous update was in Ge IC q suiti aree s g, u a the ran te ge lid d 2 0 e in s vp ea sth tmeg ne t n ce on ra trll ay ct s 3 re .0 fle s cts the declining 40s percentage of 5 e0qsuities in the portfo 60slio as it approac Ahe ll s and passes 10% 10% 10% 14 10% 10% 10% Source: Tabulations from EBRI/ICI Participant-Directed Retirement P 9% lan Data C 9% ollection Project 8% fro S m Sour eethe Hco enu ld s a emb n nd aend r Ty o V f pa e anD c s of tiv ee rhe D pa ai trt 2001a. aic ................................ ipants S oame ctua oll f ythis rep mo orte v ................................ d e me in nt the a w Form ay fro 5500 m co fili mp ................................ ng asny to s e to xc ck lud ma e y (1) be ind the 7% ................................ iv id reusa ult ls e oli f gre ibg le ula totions 8% ... p ut 14 17 pla91 n p 1 (Ma articip rc ah) nt S. ow u C rith a ce m sab :n r Tidg a ob uts u Le e la , ta ts MA io s nd n Th sing : fN r ao n a m loa t$ iona E 1 n. 0 B, R 0l B I0 /I0 C ur I P ea aru o ticip f aE nc t-onomi Dir> e$ c4 te c 0d ,Re 0 R 0e 0 sea t itro em r$ c5 e h. n 0t, 0 A P 0 v la 0 anila Db ale ta a Cto lw lew ctw io M n .nb ore Pre o r Th je .or ca t g n a/p n $d 7% 1 a 0 U p0 S e,r 0 s/ 00 w17911. >$250,000,000 458 5,483,624 599,159,366,102 109,263 09 w t5w ito /2 h up or 2_ rfe p to w t_r e tw e r c o yseur yae S rv a s of o e rus yr q cof e 2_ te : tnur T 0.p e anur bu e dl a fe (.tFi io w g na s ur s fre$ o m 59 2) E . ,771 B AR not I/, IC c he Iom P ra 14 p rta ic rip e pe a dr n c w t-e D int tih re of c $35 te40 d1 R ,1( 1 et74 k ir) e m p for la enn p tp P alr a atr n ic t ic D ipa ipa ata nt nt C s in t o s llha eche td io n ir m P or si ro xt e je ie t cha ts w n it 2h mor 0 year es of than 30 Equi"t40 ies 1( inckl) u dP ela eq n As uity set A funds, llo coc ma ptaion ny , stA occkc,ou annt d t hB ea ela qunc itye ps, a ortiond n ofL boa alan Ac ncedt fiu vnit dy s .in 2019,” published in May 2022. The entire Note: A target date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approaches and Age Group the target date, which is usually indicated in the fund’s name. The target date generally is the date at which the typical Distribution of Plans, Participants, and Assets by Plan Size participate in a D e 401( partk m)e p nla t o n f w Lah bo o rhad not elected to have their employers make contributions; and (2) nonvested former in place by the Pe A ns ll ion Prote 13ction Act of 2006 76,5(0P 7PA), which limit 1e 1d ,4 6 the 1,9 2 le 3ngth of time 997 p ,6 a4 rtic 2,5ip 08 a,nts 744 could be re8q 7uire ,040 d to hold 1 EBRI Issue Brief is registered in the U.S. Patent and Trademark Office. ISSN: 0887 –137X/90 0887 –137X/90 $ .50+.50 t y N e e o nur a ter:s Fu e of . nThe dts e nur inc m lue e d d e( ia Fi mn te g utur uae lnur f u5 n). de s ,a bt Sim a t nhe k ila c ocr llur ly ec, r tie v te he nt tr u e a sm v tse p , rloy la ifeg ie e n r sa uw c rac a nount s s ce s eev p b e aa n ye ra la tenc aa c e rc s in o of unp ts2020 a , r atn ic dipa , an the ynt p s in t osa olem d e he in va eir s in 201 s tfor men ttie ps w ro 9d.u it ch up t prim atro ilyt iw nvo e sy te e da ir ns passes 26 thI env tae rg st em t de ant te o Op f th tio e ns fun d ................................ , which is usually includ ................................ ed in the fund S’s iz n ea of m e A . c ................................ Fu cou ndnt s in B ca lu la de nc m eutual fun ................................ ds, bank collective trus.............. ts, life insu 14 ran ce Loans fro ser Alie l is of ndm exr e40 e sse a1( ra er s c k) e h up t tP olan 1 d0 a0 ts e in s is Ten De a cd e vm atila bo e b rBe le 20 0 a S 7 t .mall www. ebri.org/retirement/401(k)-database. inv For esto ar cfo omp r wle ho te m time that sfu erie nds is o f dthe esig p ne erc d e wnta ould ge re of ac eh ligre ibtire le 401( ment k)a p ga ert aic nd ip asnts top w ma ith king outs ne taw nd inv inge 401( stmek nt ) sloa in ns the a nfu d nd loa . n amounts Morningstar. 2020. Morningstar Lifetime Allocation Indexes (June). Chicago: Morningstar, Inc. Available at employees who had not (at the time the Form 5500 filings were submitted) incurred the break-in service period established by the security indicated. c H The oold mp20 ea 2n, ny 20 Sa s E to rB a cRI h, k c /I D oC ntrib aInie 40 lute 1( Sck d hr ) to a dss athe t, ab Mic ira se aha ccc o eont un l Bts og ains bd ya inf the n, or a ir nd m emp a Jta ion o loy son Se er; n 76,50 sligma pecifie 7 401 n. d rule 20( 22 k s) . re p “g la Aa m ns rd e ing rw icit a h th n Vie e 1.0 t now tifi rs on illcion in ation Defin o af ss e be d lat c s a Ckont ond ut ribut p11 erio .5 ion ds; separa te acco 1u tno t 1s 1,0 and 1a 1n t yo p 2o 5oled 2 6 in tv o e s 5t 0me5 n1 t p to ro 1d 0u 0ct p r 1i0 m 1a tro ily inv e 2s 5t1e td o in th e 5 0s1e t co urity 1i,n 0d 0ic 1 a to ted. 2,501 to 5,001 to >10,000 All Plans of tenure was $24,986, compared with $198,711 for participants in their forties with more than 20 years of tenure. The S&P 500 index measures the performance of 500 stocks chosen for market size, liquidity, and industry group representation. as a perceP nta artg ic ei p oaf nthe ts in re clu ma deining the 1 401( 1.5 m ki) ll ip olna n 40a 1c (k c)o un plat n b pa alra tinc cip ea , nste se i nH to hld e e yn eae r-t ea nl. d 2 2013. 020 E BRI/ICI 401(k) database and 1 996 N2 o0 te 0:0 The 2 m 0e 0d 2ian a2 c0 c0 o5 unt b2 a0 la 0n 7ce at2 0 ye 0a 8r-end 2 0 20 09 20 w2 a0 s 1 $ 2 17,96 21 0.13 2014 2015 2016 2017 2018 2019 2020 A Sm ou D ong rc is et:r T ibut p aa bu rtion o l© a ic tiipa o 2n 0 s2 f P nt f2 ros w ,la m E ns E m it B, h o plo RP I/a IC u y rItt ee ic s Pta ipa a B rtnding ienef cnt ipa s, a nit t -40 D Resea nd ire 1( cA tk ess ) d rc R loa ee t h In s b tins rem y sa e tP t n it tla y ute P e n Size la an – r -E D ea du nd t a ................................ ca C 2020 ot llio ecn t, ioa t nhe nd Pr o a Resea jevce tragrc e h F unpa ................................ un id d. bAll r alanc ig eh w tsa re s $7 s.................... er,560 ved and the 14 N 36ote: Account balances are participa 40nt account balances held in 401(k) plans at the participants’ current employers and are net of plan https://assets.contentstack.io/v3/assets/bltab 2f2 50a7413d5a 5008f05/blt 1,0b 00 44a9ba 2,5 b047 0 6fdc51d/5 ,000f048 11bb 0,009c 0 cd4234d714397c/Morn the andir re For p 3q lauire n; all of tha d qtt ua he ad rte jus figur rly tme se ta s in t nt tew me ahis snts no r e tha lon por t gtmus e, r cp om o t s inc s pib one lud le e b nt eas m g inning noa tice y not hig in 2005 h ali dg dhting t(o sete he the US tot imp De als po arta p rtme re nc sent e nt oe o f d f d L iv b ae e brs coar, ific us Em a etion of ploy r(ound s ee ee Be Jing. one int fits Fig ures Sourcem P : la T ill L a n Sa ife ion p bus la ty v tile a o ing, n r tfu sic fnd ipa r20 om s21 nt ma Es (F .” Binta R IIC /igur IC Iin IRe P e aa se p rA1 tre ia c). r id p ce a h Re te n tA -rmine D s in t ip re or cttd he e d (ris Fe R 40 k e b tle 1 r irua ( e vk m e) rl e yuni a n )nd t. P A v lv e g aa r n ese ila ne Da b ra a tle a tll la C ya o r t us lg lw e e e cw , tw im w oo nost .ic rd Ps i.or r o of s je uc g ctt/f h he ile a sp s/ la “c 20 ns ons 22 in t e/2 rv2_ he ativ p d e pa ,r” t_dc a“mod ba_pla see a ra n_s re te sm ,a” vo ing.p a r ll: 63 df. The ICE BofA US Corporate Index tracks the performance of investment grade corporate debt that is publicly issued in the US the 21.8 million 401(k) plan participants in the year-end 2007 EBRI/ICI database. Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project loans. Retirement savings held in plans at previous employers or rolled over into IRAs are not included. The tenure variable is generally 27 Number of Participants in Plan median was $4,020—in line with prior years (Figure A11). The ratio of the loan outstanding to the remaining account S ingst ecurity A a1 t r_L Ad hr 2ifeti oug minis mh A1 etra _Ation llo 2 a ca r2012 e tion_ avafSum ila or bfu le m rthe in ary tr he _P de D a ta F_ pilp )June e . n Th dix is 20 . c 2 ha 0_ ng ae n d in _F me actho t_Shee dolog t.p y d re f sults in a dramatic increase in the number of Committe This maey o re n fle Tax ct action hang 2006) es ins . tituted by the Bipartisan Act of 2018, which as explained by the Internal Revenue Service 2020, p “a egrRe g ce re d la nt s ots m ions iv of ee s” tthe ihip c in m the pof ala rkns ir E etB na a RI ha nme d /I v d e C e to I25 n o 40 im nd or 1( inic ak fe a t) e te w dD e ithe a nrt U a p b S a fu a r d tnd se ic olipa l’s a P rls ris a nt .ns ks, a le to vnd etl. he 24 L ife Univ p sty ere le cre se fu ntnd of ha sA vgll 401 ee n 26 era t(o llky)10 a Pre la 0 p ns inc a ................................ rlt ud icipa ed nt in s. I then con non–tta ra rg st............... e, t le dss ate t han 1 15 Equities include equity funds, company stock, and the equity portion of balanced funds. Funds include mutual Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project balance was 8 percent at year-end 2020, the same as at year-end 2019 (Figure 9). In addition, variation around this Souind rceiv : T id a Sua b ou ulls ra c te ire o snp :s o Y frte a ro hm o do E a , s B Fe R ad c I/e tiv IC raIe l P R p a ea rs trticip ie criv pe a n B atnts a -D nik r e in o cft 401( e Sd t. R Le k ot) u i rip e sm ,la Ie ns Cn E t; P D in la at2004, n a D Ina dtia c the e C so , l la nu en cd tmb i o Sn te a P r nrd o oa jf e rd a c c t& tiv Pe o o pra 'srticipants increased to 53.1 million Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project a bmo alanc nge o dthe ffu unnd r ds thing ,c b aa te nsg k:o cry ol.l ective trusts, life insurance separate accounts, and any pooled investment product primarily percent of the plans have more than 2,500 participants. However, participants and assets are concentrated in large 15 Ap At pey ndix ear- e ................................ nd 2020, 60 percent o................................ f non–target date balanc ................................ ed mutual fund assets................................ were assumed to be inv ........................... ested in equities ( s 15 ee a verage tS eo nds urcet:o Ta cor bur la etspond ions fro m w it Eh B a Rg I/e IC I( t P he ar tiold cipa en r tt -D he ire p ca terd ti c Ripa etirnt em , e tn he t P low lan e Dra tta he C o alv lee crta iog ne P ),r otje enur ct e (the longer the tenure (new method) from 44.4 million (old method; see US Department of Labor, Employee Benefits Security Administration 2021b). Investment Company Institute, Quarterly Supplementary Data). Allocation to equities in target date funds is assumed to vary 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 br r r r r r r r r r r r r r r r r r r r r r r r r r r r r ri. 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.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 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 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 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIs 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 ss 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 su 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 ue 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 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 Br r r r r r r r r r r r r r r r r r r r r r r r r r r r r rief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief A re • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • s e 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 Na 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 orv v v v v v v v v v v v v v v v v v v v v v v v v v v v v v ce 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 hmbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe mbe repo 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 r29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 t fr,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,o 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 m 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 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 th 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 2e • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •E 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 Bo 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 .............................. I576 576 576 576 576 576 576 576 576 576 576 576 576 576 576 576 576 576 576 576 576 576 576 576 576 576 576 576 576 576 Edu cation and R esearch Fund © 2022 Employee Benefit Research Institute 30 27 11 22 18 23 12 29 21 26 24 25 13 10 16 14 28 20 17 15 31 6 7 2 9 8 4 5 3 19 48% 37% 42% 39% 44% 43% Dec-07 44% 40% Jun-08 39% 42% Dec-08 42% Jun-09 11% Dec-09 10% Jun-10 8% 8% Dec-10 7% 7% Jun-11 6% Dec-11 4% 5% Jun-12 5% 4% Dec-12 Jun-13 15% 15% Dec-13 18% 21% Jun-14 23% Dec-14 26% 27% Jun-15 30% 31% Dec-15 34% Jun-16 35% Dec-16 8% Jun-17 12% 12% Dec-17 12% 9% Jun-18 8% Dec-18 8% 8% Jun-19 8% 8% Dec-19 9% Jun-20 11% Dec-20 15% Jun-21 10% 11% Dec-21 7% 6% 6% 6% 6% 7% 6% 4% 7% 4% 4% 4% 4% 3% 2% 2% 1% 1%

401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2020

401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2020

Volume 576

Pages 32

EBRI_IB_576_K-XSec.29Nov22

EBRI Issue Brief

Nov 29, 2022

Sarah Holden

Steven Bass

Craig Copeland

Retirement