The Public Retirement Research Lab (PRRL) was established to provide reliable data on public-sector defined contribution (DC) retirement plan participants. The PRRL Database is the repository for the data collected by the PRRL. To fully understand the impact of ongoing plan participation, it is crucial to analyze a consistent group of participants (a longitudinal sample) who have been part of the database for an extended period. This paper presents the first longitudinal study that analyzes public retirement plan participants who were present every year from 2019 through 2021. The study tracks balances, contributions, asset allocations, and loan activity of 1.1 million plan participants who held positive defined contribution account balances in the years 2019 through 2021 in the PRRL Database, covering a three-year period.
A few key insights from the 1.1 million consistent participants over the period from year-end 2019 to year-end 2021:
- Account balances grew steadily from 2019 through 2021. DC plan balances for consistent participants rose each year from year-end 2019 through year-end 2021. Overall, the average plan balance rose from $43,839 in 2019 to $61,886 at year-end 2021 while the median balance rose from $10,365 to $16,864. This growth was widespread across participants; the median year-over-year change in balances from 2019 to 2020 was $3,045, and the median change in balances from 2020 to 2021 was $1,941. Similarly, the average year-over-year change in balances from 2019 to 2020 was $11,323, and the average change in balance from 2020 to 2021 was $6,724.
- Dollar contributions increased among those participants who continued saving. Among the participants who contributed each year, the average employee contribution increased from $2,405 in 2019 to $2,778 in 2020 and $3,012 in 2021. Median employee contributions ranged from $1,222 to $1,392 and $1,520 in 2019, 2020, and 2021, respectively. The fraction of plan participants in the sample who made a contribution to their DC accounts fell from 79 percent in 2019 to 76 percent in 2020 and 72 percent in 2021. However, the active status for all three years is only known for 6 percent of the participants, so a potentially large share of those who stopped contributing could have been no longer eligible to contribute (see “Contribution Analysis of Participants Flagged as Active” on page 13).
- Participants tend to concentrate their accounts in equities. At year-end 2019, the average allocation to equity funds was approximately 67 percent of consistent participants’ assets. This includes allocations directly to equity funds and the equity portion of target-date funds or the equity portion of non-target-date balanced funds. Younger participants tended to have higher concentrations in equities than older participants. Participants’ exposure to equities and the other asset classes remained relatively constant over the 2019–2021 timeframe.
- Younger participants tend to allocate a higher percentage of their funds to target-date funds compared to older participants. In 2021, participants in their 20s allocated an average of 67 percent to target-date funds, while participants in their 60s had an average allocation of 29 percent. Additionally, the utilization rate of target-date funds remained steady, with 36.6 percent of the consistent sample participants allocating their entire portfolio to target-date funds every year from 2019 to 2021.
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e a o e o x r, n t d v a h t g e t m e h ro - p e 30s be y l a e ev a , sm e r, t(h ra 26 t 82% e h a g a e le lv ie r e e rtra m , etn h p gure e l e o i r a y co s l el e o wi n co ca ttri 80% h tn ib a o tu ri n g t b ito iu o vn t t eis pro n o a e n rg im e nd tcre p -uc l d oa a e y 78% tse e d er si f d d un f g oro n n dis f m o ica t o .f n If t a in the public sector. Figure 10, Mean Employee Contribution Amount, by Age and Tenure of Those Average Contribution as a Percentage of Salary, by Age Figure 18 A A A A Ag g g g ge e e e e G G G G Gro ro ro ro rou u u u up p p p p TT en T T T en en en en uu ru e u u rr e r r e G e e G G ro G G ro ro ro u ro u p u u u p p p p 2 2 0 2 0 1 0 1 9 1 9 2 2 9 0 0 1 19 9 2 2 2 0 0 0 2 2 2 2 0 0 0 2 0 2 0 0 2 0 2 2 20 0 2 0 2 2 2 0 2 0 1 1 2 1 2 1 1 E T Th Th No m hie e ts i p a P a lo s t lv ub ly e pa e h rla e ie c R r g s f te iiici rst n ba e t p ti a h re llo n e am n t pub ns m g ce ein t ud a t a l R im ke c s in e o co a e se nlct g a a n t o rch n th rra o ie b l La y g fut t si e ro is o b n oup e i ns s t fn pa o a coun o r f co r e tth tiic e n t rie e ip si r r m a st a a n e cc co e tn s i n o tt - un m n p in t p a t d h ls i rt ust e eix n ci P r a r p R e ya g t R -in sp riL t v es e m D on in a n e y so t cre n a e tre b l aa a a r. d s s n co e T e d d .h sc Th f e llro a a sh e p b m t e o a.i $43, ra r m M et e io a v pe n fe 839 y i e n ri p d fo fub io v d a ir d t l t un i y o ua c- e d fse la e ts wh h r r ct - e st e o n ud r o d y, Out of 67,859 participants who were flagged as active in all three years, 84 percent contributed in 2019, 82 Average Equity Exposure, by Age Age Distribution, 2019 PARTICIPANTS IN THE PUBLIC RETIREMENT Contributing ...................................................................................................................... 15 g t p t ph h a e ro o e rce rt se se wt ic pa n i ih p n $2, t a )( t a ir n n h t405 i t n i r e c co d iie p r lta n a 20s hn t t n e iit v n 2019 s 50s e ue .i n Ta te 2019 s wi r( rg m 23 pe to e s) th t $2, - t iw d n h 0 a rc t a e 778 i – th s 68. e sa e 4 e n f iY t r un m e )a .n a Th 6 pe e cc d r 2020 pl ss o eun a sm rce nt , ba a n ta h n tl.e ld le B n a $3, st t y n 2021, ce a he 012 i g s. ir e I g tn e co ro t n n 88% ure h 2021. up in s pe t i ra nst cre rc M ,e ta n e h se t d e a is, a a gv n e but e e w ra 84% m a g t p s 67. h e l e o a pa y cc e 1 pe e o r co t un icirce t n p ba ta rn n ib lt ta 80% ut ’.s I nn ice to a en n o d s r ure d f o ia tn i m lo d g n e a e ,r y d 2021 Asset Allocations Among Individuals A 1 ugust 8, 2024 See Gropper, Michael, “The State of Public Sector DC Plans: 2021”, PRRL Research Study, (September 2023), available at 20s All 3.4% 3.6% 3.8% 20s 20s 20s 20s 8% A A A lA ll llll l $ $ 5 $ 1 1 4 ,0 1 ,3 $ 4 5 1 75 , 6 83 $ $ $ 9 1 7 6 ,$ 4 ,0 2 3 5 3 ,5 4 4 3 6 $ $ $1 1 $ 9,,5 1 ,6 7 ,6 5 0 71 1 7 2 4 E 201 2019 con em mp p t9 ri llo o – b to y y 2021, ut e e $61, e e es h B d e t r a o 886 n e v e a p e fn re a it ya R de se a t y e cc n se fe t io n s aa un e ra rch - d n e t be i n i I n n d n t a n 202 e st e g rf e it iit st u v pe 1 e tie n n ( ( F g y nE i pe si g e B ure o aR n r riI pl d o ) 3 d ia d a ) n de . o n d Th f, st t wh cre h eud e m Na ia ly e s e e o d ot a ifit a o h cro p n n e a a a rrs h ss lt cc A ico it a ssoci p h un v a e e n t sa t b as a “ a ’m t h ire lo a p yn t n b lie o ce r ri e pe d fm G a ” 401( ri e m o n o v o t d e n :s rn 79 g a a t v m ) h ip n e p il s con g n e a t rce n b D .e A h e n si a lf to ist v n o n ie e o fg d n rs wi t th percent in 2020, and 81 percent in 2021. Among the 84 percent of acti100 ve p %articipants who contributed in 100.0% 7% Who Held 100% TDFs in 2019 but Held 7% a a d p th m ut a ee cre rt o o a in m c v a g ip e a f se t ra a ro th in ca i g m e t fe s, co lt $1, l a h o ye r n lr ly si o e 222 t t sw b ca h st a oe tlse ia in o tn o ch t n wi sa ce $1, o j t f o m a t h b 392 a wa l h p s o o la e n se yn g f w d e r n ia n t o r d s t m ra t $1, e h t e n h n esf e ure q ir 520 i ui e 20s 60s r t sit e h — ,s a n m e t 2019, o ib r st a n r o ki d e t Fa h t in g ib o re g u l 2020, up o e f rm e wh - v e 1a n Dl o n tu a m a le yss n 12 f tun d e en 2021, td s ds e to d h t o ao r v n h e e or sp ta e hv d e e e a r ct lp ro a iv ub rg un ele ly id r c . ba Th -27 pe sele c a f tn o rce r a rc ct e s a em in ot p t n i lt o n o h y f e e p e ar ch la wh n o o f 5–10 Years 81% 80% 7% 79% Figure 11, Median Employee Contribution Amount, by Age and Tenure of Th 12% ose 7% https://www.prrl.org/uploads/1/4/0/1/140176219/prrl_study_the 7% _state_of_dc_plans_2021-v2.pdf. 6% 7% 0-4 Years 6% 3.4% 6% 3.6% 3.8% RESEARCH LAB DATABASE, 20 319–2021 79.0% 00 – 0 0 – 4 – 4 – 4 Y 4 Y e Y Y e a e e a ra s a rr s r s s $ $ 4 $ 9 8 3 3 0 ,4 7 $ 6 19 ,4 41 $ $ $ 8 1 6 7 ,$ 3 ,8 1 3 4 3 ,8 1 0 3 8 $ $ $1 1 $ 8,,4 0 ,5 5 ,5 4 7 55 3 2 4 2 90.0% 6% 6% g t C p gh a ro i2 o v o rt 0 n e se up 1 t in c ri 9 t pl i a p b , 9 h a ut le a so 5 n C n i p t o s, g s n O e con A re r tV c h e w ID d e nt t m yr - f co sti iro 19 pa ib nut im lul st l c e d r $10, d o a a n nt t td o lo r s rs ( e i o b 365 a m h u t te iNA la c ed v a a in e n G st in 201 a d DC o 2 sub sup 0 n2 A e 9 1 ) a se p .to . Th T cc le q he $1 m o ue e u p e P 6, n n n e tt R t 864 r e a ic R n e lcon 2019, L a nt de ia n n f o ge 202 ia n m l o e y i wh d c un fze p co 1s da a .e rn ce re ti tc rrt a it ip b a s o a a ut if nt n ro n ito s w y lm y n . ( De 7 iho DC t5 s sp p P c)o e ub ip nt trce e ll a r iitc R n b n hu ,t e suc te pa a en d ti d re h n w 72 a d m ae s s a e m hi p ni e g t c, 457( R rce he DC e r se nb t ) a o rch f 6% 6% 71.4% <100% TDFs in 2021 2 6% Plan Type Distribution, 2021 6% t b o P ewa a g r C itn ird c o n ip n p in a f 8 a tribu n ig 0 x rt t o .s e 3 i’c d % f a i t tin p cic n 8 h a o 0 com e g n u . st 3 t n ................................ % s tsud ie 8 n w i 0 t iy .n t2 h h p v % e e d e sa e st ri fio m n m d ee d p t n c l h t e oa s n wh n ta ri y s bo o u a ................................ un t m “ iotn g a a p d e rg lr e ae n w a t s co o prke on ns trs o o rirs b ut tr hia to h t n o d ................................ t o se o n wi o tth p e ta h ir r sh DC ticip o a a rt tecc e ir no ttun e hn e t ure ...................... P s RR fe sL l l — a fre ro sh n m oo t 79 we inc l 16 d u pd m e erc do .e re nt in t p ph e ae rce rt tic hn ire p ta ( etF y eis i g eure an rs. t h 1e A P ).R RL Dat 11 ab –a 2se 0 Y . ears 80% 80% 79% 78% 78.9% 6% 78.9% A LONGITUDIN 5-1A 0 YL ea rsA NALYSIS 4.4 % O F CON4S .2% IS TENT4 .4% 5% 69.9% 80.0% 55 – 5 5 – 1 – 1 – 0 1 1 0 Y 0 0 Y Y e Y e a e e a ra s a rr s r s s $ $ 1 $ 1 ,1 2 ,8 0 5 $ 8 ,7 3 6 7 1 , 2 20 3 $ $ $ 1 2 1 ,,3 $ 1 45 8 5 ,5 0 ,9 8 1 7 92 26% $ $ $1 2 $ 1,,1 7 4 30 5 ,3 9 ,4 6 9 6 2 6 0 1 .1 5 % 70.2% 67.3% Da p p a 3 cc l aa rt tn o a i.un c b Th ia ptse a ba e n P ,t t s m lR h ae n R ce a L wa fid rs se ta co -n s e ed v n co e st tr r ia b d n b ut a tlri tiish a b ob u n e a t s i d se io t n n spe o 2020 s a we dc d ir f re e ic a f ss n to o d u t p 2021, n hub d is f tlo ra ic h r - g se a e m v sp ct e e n e o st ct t r e ed id a v e l d e fa ilily n n y.e d id sc n co cre ap n a e ts a re ib n dut d f pro ro ion m da v 2019 idte a r , t eo ltio pr a 2 bo l02 e d da uc 1. e ta on among younger and/or less-tenured groups. For instance, 96 percent of confirmed active participants in their 70.0% Throughout this report, “average” and “mean” are used to refer to the arithmetic average, which is a measure of the 3.7% d m ao td ee ” st a2019 t 5% p rp ero laa tich v oe 76 e g s,ro p wh w erc tih ch e in n r t a e id n cc uc 2020 oe un s t t si h ae n z n e d. e 72 F eo d r p fe o ex r rce a am np t lie n, 2021. the av Ho erawe ge v ae cc r,o tun het ba actliv ae n s ce t o atfus f part or ici ap lla tn htrs i ee n 21–30 Years 79% 59.3% 77% 76% Figure 12, Average Contribution as a Percentage of Salary, by Age ........................ 17 30s All 3.7% 3.9% 4.0% 66.3% 70.0% 59.4% 60% F30s 30s 30s 30s igure 17 – Mean AllocationA t A o A lA ll l Ill n l l v estment Category, by $ $ A 1 $ 1 ,ge 1 1 ,9 5 8 $ 2 ,8 9 6 0 6 , 2 74 9 $ $ $ 1 2 2 ,,3 $ 3 25 9 1 ,1 0 ,6 4 1 4 70 $ $ $1 2 $ 2,,1 6 4 51 8 ,6 5 ,5 1 9 0 9 74 p M un ub o b re ila ic o se - vse e dr, ,ct a a o ct cc r io DC on un a b re t b le tia r re le a m se nce ea n rch s t pl a a na d in m co p ea d nrt t a ri ici tb e p ut n aih n oa t n s n s .ci Th we ng ere un P R ad lR so eL rst f D o a a un n td ad ib n t a g o s o e be i f t s h h th e ig de eh re e s rp i g a om n s a io to n nry d g pa f uo tir rt litza ih cie p t ia d on a nt t s i a o f n older Sa 20s lary co int nfr o ib rm ute at di i on n 2 is a 01 60. 9 va ,0% w ila hb iclh e f do er cl18 ine d p t eo rce 91 n p t e orfc t eh nt e i co n 2 n 0 si 2s 1t.e M ne t anwhile, only 68 percent of the active “center” or “typical value” of a collection of data. The median is an alternative measure of central tendency and is defined as C PON ART TE IC NIT PS A NTS IN THE PUBLIC R 57.9E %TIREMENT 4% 57.5% p th ae rt ir ic60s ip ya en a it n rs t cre o is o ra ese b na ld y la kn 29 nce o p wn t eh rce e fio r n r p t ( 6 oa pe rt 1 fo 4 rce li o pn .e Ta t rce org fn tt e h t com e - pap rto ici un pd a a ntn s, n so ua la a po vera teg nt ei g alro ly l w atrg h r ea sh tea (r C eA oG f R th )) o be se twh weo e n 31+ Years 69% 66% 63% The decline in participants m 0-4 a Y kie n ag rs co ntributions to th3 e.i6 r a %cc ounts was se 3.7 en % a cross multi3 p.l8 e% g roups but 60.0% 27% Figure 13, Mean Employee Contribution Amount as a Percentag 4e 6. o 0% f Salary of the number such that half of the data points are above and half are below; the median is less sensitive to outlier a pg ue b g lic ro -se up ct s wi or d th e fm ino ere d50. c te o 0% 0 n n 0 – 0 ure t 0 – 4 – ri 4 – 4 Y b 4 .Y e ut Th Y Y e a e e a ria s o a re r s r n s co s r en tt ire rib m ut ein ot n p r$ a l$ a 6 $ t1 e n 3 7 ,s 3 s 8 ,1 $ 5 a t 6 2 6 o s a 4 , 5 b 6 p e2 te te rce r in nt fa og r $ $ m $ e 1 1 1 ,o ,0 $ p 7 1 f 3 4 u 8 , a 4 0 ,b 8 8 8 n l 5 4 in c 3 ua plla sa n 4 5 ld a .1 e r% y si a $ $ g $1 2 $ l 1 n s ,,6 4 1 ,0 o ,8 ,2 8 i 98 4 n 7 4 cre 1 1 ased sa col pm a le rp ti ct lce e ip ;d a a by nt ms i o t n n th h ge t P h eio ub r se 6l0 i wi c R s ct o e h nt t isa rre ib m lu ate e ry n d t i n R in 2 fo erm s 0e 1 a a 9 rch t,i o and n La , tth h be .a m t do ec slti ned to 60 percent in 2021 (Figure 7). In addition, 3% 40% 39.6% date fun std os pp ae re d co aim ne tri d a bu tt p in ag rt co icip ul ad n h ts awh ve be o d eo n n no ot l onger eligible to contribute (see “Contribution year-end 2019 and year-end 2021 (Figure 6). 2019 50.0% 5-10 Years 4.4% 4.4%4 4.9% 4.4% 60s Th ose Contributing ................................ All ................................ Figure 3 65% ................................ 62% ........... 58% 17 was most pronounced among the participants with relatively low levels of tenure with their employer R ESEARCH LAB DATABASE, 2019–12021 4.2% observations than the mean. 40.0% Introd 2% uction..................................................................................................................................................................................5 m be oa t un we t o ag fe a e n m l 2019 l the ent a , icn tco n o u o 2021 nt va s b tio e a n 5 ln 5 o ,– 5 5 ngi d – 1 a – 1 – 0 n 1 we 1 0 Y d 0 n 0 Y g Y e Y lre e a e e te a r o g a s a r the h r is r sla s i s g h c te io o r ns n a.m i s T te o on nt lg e p $ pa a $ 1 a $ r2 n r ,1 4 ,rt ti 4 m 8 5 c $ i6 ,ci i0 4 p 1 8 o 8 p a 0 re 3 nt a ,0 n , v s th 2 t3 s i isi a n tt r o w e ld ww ce e $ $ i$ r v 1 2 a e 2 .,p ,5 $ d 7 6 g rr 5 1 c 6 ,e 0 9 3 l 9 o g 5 . ,o nt 9 2 ro r 9 rg i0 up b . us wi tionst i h n m $ $ $ 2 1 3 $ 3 0 o ,,1 0 6 0 1 r6 e 5 ,1 9 4 , t 6 1 6 0 b e 4 3 u n 5 t d ure id. common salary band was $50,000–$75,000. The smallest 4 40.0% have tim An ea o ly r si kn s o owle f Pa d rg tie ci t po a m nta s F ke l a in gv ge es d t a ms e A ntct ive” on page 13). Age Group Equity FunM d 11 se - a 2 B n 0a an Y la enc ad rs e M d edian T aA rg cet co -Da u 3n .7 tt e % B a2 B la .o 0n nd % ce F,u 2 nd 01 s9 3 – .9 2021 % St able-Val23% ue 4Ot .0% he r 0–4 Years 85% 80% 75% a A nd na t ly hs o ese s o fi n co y no tri un bug tie or n a ra g te es g aro re up limi st,e a ds ca to pn ar be t 2 ic 5i.p se 3a % ne tsn f i on r w Fh ig oure m sa 8 la.r F y o inr fo erma xam tio p nl e is, a 87 vai lp ae blrce e fon r ta o ll ft p hre ae rt y ici ea p rs a n an ts d in The PRRL Database is an opt-in collaboration among public retirement 20% plan sponsors. Plan sponsors Figu 1% re 14, Median 30. E 0% mployee Contribution Amount as a Percentage of Salary of Figure 6 - Growth in Average Account Balance, by Age and Tenure Despite similar patterns,11 a 11 11 11 g –e – 2 – 2 – 0 2 a 2 0 0 n Y 0 Y e d Y Y e a t e e a ra e s a rr s n r s s ure have a we $ $ 1 $ 2 ,3 6 ,a 7 4 9 ke $ 9 ,3 2 1 2 0 r 8 1 i,m 5 2 p 4a ct on t$ $ h $ 1 3 e 4 ,, 7 $ 0 2 con 9 2 8 ,6 7 2 9 0 , t 0 8 r8 i b 3ut ions as a $ $ $1 3 $ 4 pe ,,2 9 8 34 9 ,6 4 ,rce 3 0 8 9 3 49 n tage of sa no lat r rye g ce ro ivup e a ny wa cs o nt thro ib se uti m on a i ki n n 2 g 0 m 21o , m re o tr h ea tha n $1 n o 00, ne000 a -third n wn eua re lm lya ndatory contributing accounts. These B3 yDe 0 S .0a % m m oit ga ra Th ph eip c C hah si atra , E ct m ep rilst oy ics ee o B f e th ne e C fito R ne si se sta erch nt S In am stp itl u e t e ................................ , and Michael G ................................ ropper, Employ........................... ee Benefit 5 d are 40s eci bsi a so en d s o. nF fie g w ure er p s 18 articia pa nn d t 19, sA th lla n b F e o ut lnd h oe w, r s a a na n la ys ly es ze dF utu e h nd t e o s so me 3. 7 re % co rdkeepers not h3 av .9 in % Fg u o nd r n so t providin 4 g.0 s% ala ry receive complimentary benchmarking as a participation benefit. For more information on how to theiTr h20s o0% se C wit o hn 0 tribu –4 ytin eag rs o ................................ f t5 e– n 1ure 0 Y m eara sd e a co................................ ntribution77% to th eir acc ................................ ounts i 74% n 2019, but........... onl71% y 71 18 p ercent of $70,000 20.0% 13% $61,886 ( aF 40s 40s 40s 40s n ain g c • c ua ure o ulnt P sa 1 a s r B rlt a ). e iry c qiu pa r ire en l a a tt s ll i v a te en c ti to v d e t At A p h A lo A lle a l lll c rl c ti o o c n n ip cten a rint btut s to rait oe c no s i th nt n ei r id r b u o ate lc $ l$ c a a 1 $ o 2 r ,4 sp 4 u ,a 5 1 1 n m $ 3 ,0 e 6 t 1 2 o s c 1 4 i un fi 9 i,1 n c 9 a tequi s 1 m . Th outnt iis a es , i$ .nd n $ $ A 1 a 2 5 ,il t ,5 c $ 9 3 y y a 9 1 si 0 ,ti 4 e 8 8 3 s ng th 6 a , 5 0 r l4 i- ke e 4n a ld y t a r 20 l ea fl 19 re ge c$ $ , t $ p s 1 t 3 $ 6 h ,e ,2 t 1 7 1 e r h 1 2 ,c 7 1 e a ,e 9 7 7 0 f nt v 4 7 a e 5 a c rge a t t g o h ea f t 0% 20.0% R ine fose rma arch tion I . n Tst hei t put ate te,rn on in be the h a amo lf o uf n t t h oe f d P oub llars li c R cone trtiib re utm ede b nyt R age ese ana drch yea La r inb th e sample with salary information was 0-4 Years 3.4% 3.6% 3.7% b20s A eh ga e v G io ro r u op f pa rt1 ic 6 ip .20s T 4a en % n t us wh re Gro o,u a p 0s o .2% f 2019 30s 201,9 e –i2 t0 h 6 2 e8 r 0.6 % 40s 20$ 250 5– ,1 2 6 6 0 .9 22 % 1 50s 207 1.9 8– % 2 021 60s 0.0% C AGR participate, please contact NAGDCA Executive Director Matt Petersen at mpetersen@nagdca.org. $60,000 these participants ma10. de0% a co 11 nt– ri 2b 0u Y te io an rs i n 2021. On the65% othe r hand, 75 p 62% erce nt of particip 59% ants in their Plan Type Distribution .............................................................................................................................................................6 Figure 15, Average Equity Exposure, by Age ................................................................. 19 14.0% 0.2% 0.4% pa 1 p0 rt a.r0 iti c % icp ip aa n nt ts’ s c sa ea la se rid e c s i on nt cre riba use ting b wit eh c a aug se e a the nd y t b ee n cure ame . i nactive. Among the non-mandatory accounts, it is similar to a ltlh o aca t otf io th n e t oo v e e ra qlui l st 0 a y 0 – mp 0 f 0 – 4 – un 4 – 4 lY 4 eY e .Y d Y e a T e s wa e a rh a s a ru r s r s s s , d s a esp pip tero th xe im saa mp $ t $ e 6 $ 1 ll 5 1 e y ,4 0 1 w $ 4 6 ,0 2 i0 7 t6 h , 7 3 p s 3 e a8 lrce a ryn in t fo orma f co $ $ $ 1 t 1 n 1 i,o ,0 $ 8 6 si n 1 4 5 , st 2 b 4 ,7 9 6 e e 7 i7 n n 9 g t s p ma arltlie ci r,p ta h$ $ e n $1 2 $ t 2 re s’ ,,6 0 1 0 s, a 5 ,u 7 9 4l 4 5 9 sse 1 ts 1 7 o n ts . This 5-10 Years 4.0% 4.2% 4.2% ( a) held a portfolio consisting entirely of TDFs or 30s 26.0% 0.8% 2019 56.8%2020 2021 6.8% 9.6% 0.1% 20s $50 A,l 00 l 00.0% $43 66% ,839 35% 124% 50% 30s with 11–20 years of ten21 ure –3 m 0 a Yd ea er co s ntributions in 2019 60% and 74 perc 56% ent of these sam 53% e pa rticipants Tenure information is available for 92.4 percent of the 20s 30s 40s 50s 60s con 0t.ri 0b % ution rates being more similar across ages than were the dollar amounts contributed should be reflective of the Tp ho a F ss n ig ks t ib ulre e t o PR ha 16t so , P RL e m rc Pa e p ea n rr tn tag tic e ip re s: a o nt s st f Pa ortic ppeipa d con nt ts r W ibuith ting d an ud e W to b ith eio ng ut ina Equ ctiv ity e, E bu xp t th os eu irre ac ................. tive status i s 19 includes allocation 55 s di – 5 5 – 1 – 1 – 0 1 1 0 re Y 0 0 Y Y e c Y e a t e e a r la y s a rr s r s t so equity fun$ d $ 1 $ s 2 , 3 4 a ,5 0 1 n $ 6 ,1 d 7 1 6 8 2 t3 h ,4 e 5 e 4q uity po $ $ $ 1 rt 2 4 ,,5 $ i8 2 o 1 1 3 ,n 8 4 6 6 o 1 , 9 8 f3 t0 a rget-da$ t $ $ e 1 3 $ 4 ,f ,1 7 6 0 un 9 0 ,7 7 ,7 9 5 d 7 5 3 s9 o r the Participants Can Accumulate Sizable Account Balances ................................................................ 66.2% ..........................7 5 11-20 Years 4.3% 4.5% 4.3% 401a 401k 403b 457b IRA (b) held a portfol$4 io0 w ,00 it 0h no allocation to TDFs. 40s 35.2% 1.3% 40.6% 9.2% 13.6% 0.2% More than 86 percent of consistent plan participants had at least some exposure to equities in their made contributions in 2021.3 1+ Years 41% 38% 36% 20s 30s 40s 50s 60s All con overa si lst l se amp nt s lea . mple; among those participants, the largest While the annual updates of the PRRL Database offer valuable insights into balances, asset allocation, 0–4 Years 77% 40% 147% 57% unknown. equity portion of non-target-date balanced funds. Younger participants tended to have higher 11 11 11 11 –– 2 – 2 – 0 2 2 0 0 Y 0 Y e Y Y e a e e a ra s a rr s r s s $ $ 1 $ 3 ,5 9 ,3 7 2 $ 3 ,2 2 2 4 7 8 4 ,0 05 $ $ $ 2 3 7 ,,0 $ 6 13 3 5 ,6 5 3 4 5 , 2 90 5 $ $ $2 3 $ 8,,3 1 1 97 2 ,7 2 ,3 8 0 3 1 85 Figure 17, Mean Alloc 21 atio -30 n Y te oa Irn s vestment Cate 3g .7o % ry , by Age ................................ 3.9% 4 ..... .1% 20 5 $30,000 FoC un hd an in g g e P s a in rt A ne cc rs: oun t Balances ..............................................................................................................................................8 50s 34.9% 1.8% 33.8% 10.8% 18.7% 0.2% re Ft ig ire ure m s e 18 nt pl and a 19 ns f dr oo n m ot 2019 take int to o 2021 conside,ra wi tio tn h y wo he un thg er eo r r p na ort t a ici pp ara tin ct ip s h anta h va in s g a h TD ig Fh a e vr aia la vb e le ra in g e th t eo ir tme al e nu q ui of ty All All 79% 75% 72% t ae nn dure loa g nro aup ctiv a itm y a on cro g tss hea co wi nd sie st re an nt g sa e o m f pa pler i tn ic 2019 ipants,wa ths is tth ye p 0 e o –4 y f cro eass rs g -se ro cup tio ( n37 pe al anarc lye si ns t)ca , fo nl n lo owe t d by 5–10 Years 41% 23% 74% 32% In 2019 con , 38. ce8 pe ntrarce tion ns i t o nf e th qe ui co tien ssi th st ae nn o t sa lde m r p pla er ticipants. Participants’ e$ x 1p 6o ,8sur 64 e to equities and the 21 21 21 21 –– 3 – 3 – 0 3 3 0 0 Y 0 Y e Y Y e a e e a ra s a rr s r s s 2019 $ $ 2 $ 3 ,8 2020 0 ,5 9 8 $ 3 ,0 4 4 3 6 8 6 ,0 32021 4 $ $ $ 2 3 1 ,,1 $ 8 17 5 3 01 6 4 ,4 , 0 72 74 $ $ $2 4 $ 1,,6 2 2 23 9 5 1,9 ,1 3 0 1 58 1 50s All 3.5% 3.7% 3.7% This decline in contribution rate of the consistent plan participants in 2020 and 2021 could be due to Fig Fu ig reu 7 re : P 18 erc, e2 nt 0 ag $20 21 e A ,o 00 fs 0 E sm et plAllo oyeec s a (fl tio agn gs e A d as mo acn tig ve I ) n M d $ak 1 iv 4iid ,n 0g 6 u 1 a aC lso W ntrh ib o u He tionld , b 1 y A 0ge 0% TDFs in 2019 investment options or whether or not a TDF is the default investment option. The figures do not include participants whose 60s 28.5% 2.3% 31.1% 11.1% 27.0% 0.2% exposure than older participants. Younger participants also had a higher concentration of target-date $10,366 determine how participants behave over time. To fully understand the impact of ongoing plan Contributions ............................................................................................................................................................................ 12 the 11–20 years group (26 percent) and the 5–11 years group (23 percent). The smallest tenure group 30s All 39% 20% 66% 29% p Fia grt urie c i1 p o 3 a t n h - t e M sr e a a an lss l o Ee c m t a cl p te lo a d ye sse te h e C s io r r ne e tm r n ib ta iu re it n io po en d r A rt m eflo o al u tin io v t e to as ly co a Pe nrst cea nn tag t o ev o efr Stal he ar 2019 y of Th –o 2021 se Co t ntim ribe uftra ing m e. C S50s 50s 50s 50s U ap M it M alA G Rro Y up | American A A F A l0 A ll un ll- ll 4 l Y ds ea rs $ $ 1 $ 3 ,6 5 ,1 6 1 $ 2 3 ,5 3 2 2 . 4 9 2 1 % ,1 29 $ $ $ 1 3 8 ,,6 $ 4 39 2 3 6 ,7 5 7 .9 5 3 , 4 % 30 4 $ $ $1 3 $ 9 3 ,,3 2 7 6 .6 0 7 ,8 6 % ,9 7 9 7 4 76 the sa bum t H pe leld in < clud 100i% ng T a D lF l o s ifn t h 2o 0se 21 wi ................................ th account balance ................................ s more than $0 but n ............................ ot necessarily be 21 ing limited 2019 TDF allocation$10 wa ,00 s mo 0 re than 0 percent but less than 100 percent. fun Alld allocations, 2 9 wh .6% ile older p1 a.rt 3i% ci pants had4 h 4i.g 2h % e r allocat9 io .0 n% s to equity f1 un 5.d 8% s, bo nd fun 0d .2 s, % a nd participation, it is critical to follow the same group of participants (a longitudinal sample) who have 0–4 Years Age Gr 60% oup 2019 30% C2020 om b inatio 2021 n of Fun 1 d 0 s9% 100% Balance 44% d Fu nds was those with greater than 30 years of tenure, making up only 4 percent of the consistent sample target-date funds. In 2021, 5 - 94. 10 3 pe Years rce nt of 4.1% 4.1% 4.1% 00 – 0 0 – 4 – 4 – 4 Y 4 Y e Y Y e a e e a ra s a rr s r s s $ $ 7 $ 1 0 1 ,7 9 5$ 5 ,7 2 28 , 9 58 5 $ $ $ 1 2 2 ,,0 $ 1 24 5 9 ,1 0 ,0 2 5 9 48 $ $ $1 2 $ 2,,7 6 1 4,6 ,3 3 95 6 6 9 9 7 to active participants. Thus, the decline in contributions could be a result of some of the participants no Asset Allocation ................................ $0 ..................................................................................................................................... 18 Among those participants who did contribute, younger participants were found to contribute lower Figure 19, 2019 Asset Allocations Among Individuals Who Held 0% TDFs in 2019 PARTICIPANTS CAN ACCUMULATE SIZABLE ACCOUNT BALANCES Age Group Tenure Group 2019 2020 2021 st ab •l e-Yo vaun lue g fer un pa ds. r tIn ic 2019, ipants 38. ten8 pe d torce allo ntc o at f t e h ae h co ign hsi er st per entc s en am ta p g le e p oa f rt th ici eip ra fn un ts a dsl lt oo ca tt ae rd g t et h- ed ir ae te ntfiun re ds Th Inve e P scub o lic Retirement Research Lab (PRRL) was established to provide reliable data on public-sector Between the years 2019 and 2021, been part of the database in each year. This paper presents the first longitudinal analysis of the 100% Bond Funds 100% Equity Funds 5–10 Yea 11 rs -20 Years 41% 3 17% .8% 364% .9% 3.8% 28% ( tF hie gse ure pa 1rC ti)c.i p ants were still fully 20s 2019 al located to 96% 2020 94% 91% 2021 55 – 5 5 – 1 – 1 – 0 1 1 0 Y 0 0 Y e Y Y e a e e a ra s a rr s r s s $ $ 1 $ 2 ,4 3 ,8 3 3 $ 3 ,3 6 1 1 2 3 9 ,4 95 $ $ $ 1 3 5 ,,4 $ 0 92 1 9 ,5 8 8 3 7 , 1 63 3 $ $ $1 3 $ 6,,2 5 4 30 9 ,2 1 ,9 7 6 4 1 18 long bu er t b H ee in ld g > act 0% iv T eD aF nsd i t nh 2 e0 re 2f1 o ................................ re not being allowed ................................ to make contribuF tiig o ................................ n us. re A 1ct 6ive status is o 21 nl y dollar amounts than older participants with more tenure. For instance, the median contribution among 20s All 5.1% 5.7% 6.1% poC rto fo nl clusi io too tn a ................................ rget-date funds. ................................ In 2021, 94.3 pe ................................ rcent of these................................ participants we................................ re still fully allo................. cated to 22 defined c co omp nta rir bed utio to n o (DC lder ) re pa tir rt eim cipa enn t pl ts.a In n 2021, particip pa anrt ts ici . Th pae n P ts i Rn R t L D heia r t20s a abase ll io s ca th te e r d e ap no a si vte ora ryg fe o o r t fh 67 e more than 86 percent of consistent 100% Stable Value Funds balances, contribution, and asset allocation of 1.1 million participants in the PRRL Database over the The account balances of co 21 nsi -3 s0 te Y n eta p rsa rticipants show t 3.5 h% e cumulative ef3 fe .7ct %s of ongoing pa 3.8% rti cipation. TDFs. Among the r 11 em –2 a0 in Y in eg ar 5. s 7 perce 25% nt o f Me16% an A llocation to Inv45% estm ent Category, by 20% Age Median Mean 11 11 11 11 –– 2 – 2 – 0 2 2 0 0 Y 0 Y e 30s Y Y e a e e a ra s a r r s r s s 92% $ $ 2 1 $ 3 0 ,6 7 ,2 5 9 8 0 $ 7 ,5 1 2 2 5 8 91% 2 ,3 13 90% $ $ $ 1 3 8 ,,8 $ 8 68 3 4 ,5 1 3 8 9 , 6 70 6 $ $ $1 4 $ 9,,3 5 8 06 9 ,3 2 ,5 7 9 0 4 05 available for 6 percent of consistent participants. See “Contribution Analysis of Participants Flagged as p Na art tiio cn ip wi an dte s in their 20s was $1,161 in 2021, compared with $1,779 for participants in their 50s 0-4 Years 4.9% 5.5% 5.9% TD Fs. percent to target-date funds, while participants in their 60s had an average allocation of 29 p dl aa tn a pa colrt le ici ctp ea dn by ts h th ae d P at R lR eL. ast T so o fm ule ly understand the impact of ongoing plan participation, it is crucial to period from year-end 2019 through year-end 2021. Not all variables are available for each participant, 31+ Years 3.3% 3.4% 3 .5% At the end of 2019, 49 percent of participants had a balance of under $10,000, while 29 percent had Sample Selection Criteria .................................................................................................................................................... 22 p40s arti cipants who dA id l n l ot remain fully28% allo cated 14% 47% 21% Age Group Equity Fu21 n 21 21 d 21 – s– 3 – 3 – 0 3 3 0 B 0 Y 0 Y a e Y Y e l a e a e a ra nc s a rr s r s s e d Targ $ $ 2 et $ 4 ,1 1 ,- 0 1 2 Da $ 0 5 3 6 0 , 0 t 0 e 6 ,5 36 3 B ond Fu $ $ nd $ 2 4 1 ,,2 $ s 2 4 3 7 8 27 0 3 ,8 , 4 St 96 5 a 1 b le-Value $ $ $2 4 $ 1,,7 5 Ot 3 58 1 7 7,he 0 ,7 0 1 0 9 r8 4 Active” below for the breakdown 40s o f the con100% trib 87% utio n hist 87% ory of th86% ose flagged as active participants, for (Figure 9). 5-10 Years 6.5% 7.0% 7.5% analyze p e arce con nt si . A std en dt it g ioro na up lly o , ft pa he r u tt ici ilip za at nit os ( n r aa lto en o gfi ttud arg in ea tl - s da am tep flun e) wh ds re o h ma av iFn ie g e be u dr s ee t1 n eC pa ady r,t o wi f tth h e 3 da 6.6t abase exposure to equities in their retirement and so not all participaF n ig ts a urere 1 i Bncluded in each calculation. See the section labeled “Sample Selection 60s All 3.6% 3.7% 3.7% $10, 000–$50,000. By the end of 2021, the percentag86% e of participants w 86% ith a balance of 86% under $10,000 to TDFs in 2021, 66 0– .2 4 Y pe ea rce rs nt had m47% oved their 26% 85% 36% Funds Funds Funds The average account balance increase from year to year can be observed in all age and tenure groups. A f urt mo hn eg r t dh isc e pa ussrt io ic ni.pants wh 33 1 3 3 1 + 1 o 1 + Y + di + Y Y e Y e a d e e a ra n s a rr s r s o s t remain fully $ $ a 2 $ 3 ,1 l0 ,l6 2 o 8 $ 1 3 ca 0 7 7 , 3 1 t9 e ,5 4 d 1 9 to TDFs i $ $ $ 2 n 3 1 , 2021, ,1 $ 8 44 8 0 99 1 0 ,9 , 9 45 4 t 8 wo -thirds h $ $ $2 3 $ 1,,8 6 1 9 a 7 9 2 3 d ,1 ,3 8 7 m 7 04 2 o ved 30s All 50s 83% 5.7% 82% 81% 6.3% 6.8% About PRRL .............................................................................................................................................................................. 24 Tenure Distribution, 2019 Annual Salary Distribution, for an e px etrce end ne t o d pe f th re io co d. Th nsiiss pa tentp s ea r m pp re le se p na trt s itci hp ea fn irst ts a lo lln og ca itt ud ing in a th l st eir ud en yt itre ha po t art na fo ly lize o ts pu o tab rg lie c re t-dta irte em ent plans (Figure 16). This exposure was 0-4 Years 3.4% 3.5% 3.6% Criteria” at the end of this report for additional details on the construction of the longitudinal sample. Supporting Partners: d Th ecre e ea ffse ect ds o to 38 f ag p e e arce ndn tt im , wh e spe ile n th t e w pe ith rc te hn et a eg m ep o lo f p ye arrt ailci so pa rn et in s w force ith l ea arg ch e o r t ah cc er o;un lot n ba ger la -t n ece nure ran dg es assets to a combination of asset types, 14.2 5–10 Years 39% 80% 12% 55% 25% For example, the average balance for those in their 40s with 5–10 years of tenure in 2021 was th 20s eir assets to a1 co 7.0 m % b ination o0 f .a 3sse % t types. Th 67e .9 se % f indings r 7e .0f% le ct the stab 7i.l7 it% y o f target-0 d.a 2t % e- fund 60s 60s 60s 60s A A A lA l 0 l ll- ll l 4 Years $ $ 1 $ 3 ,8 4 ,4 3 2 5 $ 8 ,1 .6 4 2 8 0 6 % 4 ,2 10 $ $ $ 1 3 9 ,,5 $ 7 9 6 2 3 0 ,.7 0 5 0 F 3 5 % i ,gure 8 7 6 0 19 $ $ $1 3 $ 6 1,,3 .0 5 7 3 3 6 8 9 % ,0 ,7 1 1 8 39 5 2019 100% 60s 68% 64% 60% plan pa fun rtici dp s a en vte s wh ry ye oa w r fe ro re m pr 2019 esen tt o e 2021 very y.e ar from 2019 through 2021. The study tracks balances, thro Th ug an h ks eq to ui P ty R fR un L d Ps, a t rth ne e e rs: 5q - ................................ 1 ui 0 t y Y ears ................................ 4.1% ................................ 4% 3.9%................................ 3.8% ................... 24 p ina cre rtic aise pad n,t a s s s ten ed eed n in t o F co igure ntri 2 b.u te more than shorter-tenured participants of a similar age. Among percent had moved their entire balance to 2019 Asset Allocations Among Individuals 11–20 Years 25% 13% 42% 19% $47, 30s773 compa2 re 6d .4 wi % th $30,738 1.1% in 2019. Furt 56h .2 e% rm ore, for 6 th .7o % se in their 60s 9.1% 11% w ith 31 or 0 m .6 o% re years of utilization 100 , so % the choice o 00 – 0 f0 5 – 4 – t4 – - h 4 Y 4 1 e Y e Y 0 Y e de a e e a r Y a s a r e r s f r a s a s r ul s t TDF is an$ i $ 6 $ m 1 4 1 ,p 8 8 8 6 $ o 9 ,.7 2 2 rt 92 % , a 7 2n 9 t 5 co nsidera $ $ $ 9 2 t 2 1 i,$ o 2 4 6 0 4 n 5 ,. 8 8 , f 9 8 6 % o 6 6r 2 plan spon $ $ $ so 9 2 $ 7 29 ,6 .8 rs 4 3 8 ,,5 3 % 8 . 7 9 3 0 1 It is common for public-sector employers to offer multiple defined contribution plans to their MissionSquare All 84% 82% 81% contributions, asset allocat 11 io- n2 s, 0 a Yn ed ar l so an activity of 1. 41 .0 m %i llion plan par4 ti.ci 2% pa nts who hel 3 d .8 p % o sitive portion of target-date funds, or the 16% 80% Who Held 0% TDFs in 2019 but Held >0% participants in their 60s, those with 0–4 years 60% of tenure contributed an average of $2,457 in 2021, equities, and another 14.0 percent had moved 21–30 Years 23% 13% 40% 18% ten Eure ndn , o th te es a ................................ verage balance 11 ................................ i- n2 cre 0 Y a es ae rs d from $ ................................ 145,265 5.8i% n 2019 ................................ to $180, 6735 .3%................................ in 2021 (Fig 6ur .8e % .................... 4 ). 25 40s 35.0% 1.7% 40.0% 9.5% 13.1% 0.9% 55 – 5 5 – 1 – 1 – 0 1 1 0 Y 0 0 Y Y e Y e a e e a ra s a rr s r s s $ $ 1 $ 3 ,4 2 ,0 7 2 $ 6 ,0 2 1 2 7 2 0 ,2 02 $ $ $ 1 3 6 ,,2 $ 2 17 1 0 ,4 2 5 5 2 , 7 87 1 $ $ $1 3 $ 6,,1 6 3 47 0 ,0 3 ,9 6 6 6 0 50 employee80% s. Prior research from the PRRL Database has documented that nea26% rly one in five PRRL 21-30 Years 3.5% 3 TD .7F% s i n 2021 3.7% d eq ef ui in te y po d co rtn io trn ib o ut f n ioo nn a -t cc arg oun ett- ba datle a nces in the years 2019 through 2021 in the PRRL Database, covering Although some participants stopped contributing due to employment termination, the plan sponsors 21% while those with 31 years of tenure or more contributed an average of $4,495 (Figure 10). Notably, the their entire balance to balanced funds (Figure V50s 40s oya Financial All All 26% 5.11% 9% 6.40% 5% 7.0%18% 60% 1 50s 34.2% 2.3% 33.2% 11.2% 18.3% 1.2% 11 11 11 11 –– 2 – 2 – 0 2 2 0 0 Y 0 Y e Y Y e a e e a ra s a rr s r s s $ $ 1 $ 3 ,7 6 ,8 8 7 $ 8 ,7 7 2 8 4 7 8 ,9 47 $ $ $ 1 4 9 ,,7 $ 0 45 3 6 ,3 0 2 6 8 , 4 92 3 $ $ $1 4 $ 1,,3 0 7 14 0 1 1,9 ,2 4 3 7 99 2 participants have accounts with at least two different defined contribution plans. All calculations in 60% 31+ Years 3.3% 3.4% 3.5% a three-year period. b Ta he la n sa ce m d e f p un at d ts. ern Th ca e sh n aa lso re o be f observed in the median account balance figures. For instance, the median need to understand why they stopped contrib 40% uting and be aware of what individuals do after leaving contribution amounts increased across years (conditional on making a contribution). Similar effects can 18). 0-4 Years 5.0% 5.7% 6.0% 23% 0–4 Years 40% 22% 71% 31% 60s 27.7% 2.9% 30.2% 11.4% 26.6% 1.5% 21 21 21 21 –– 3 – 3 – 0 3 3 0 0 Y 0 Y e Y Y e a e e a ra s a rr s r s s $ $ 1 $ 4 ,1 9 ,3 2 2 $ 3 0 7 5 4 , 5 2 0 ,5 95 4 $ $ $ 2 4 1 ,,0 $ 5 42 5 6 35 9 9 ,1 , 9 65 21 $ $ $2 4 $ 1,,6 5 0 63 4 4 7,0 ,9 9 4 9 38 8 this report are conducted at the participant-year level, aggregating across participants’ different plans FIGURES All A33% ll Figure 3 .2 6% 3.8% 3.9% 40% consistent participants who held at account ba 40% lance for particip ants in their 20s with 0–4 years of tenure was $4,722 in 2021 compared employment for those who stopped for that reason. As account balances continue to grow, as shown be observed in the median employee contribution figures. For example, among participants in their 40s, 5-10 Years 6.0% 6.6% 7.1% 5–10 Years 37% 9% 49% 22% All 29.5% 1.7% 43.6% 9.2% 15.4% 0.9% 33 1 3 3 1 + 1 1 + Y + + Y Y e Y e a e e a ra s A a rr s r s c s c ount Balanc$ e $ 2 $ 4 D ,1 0 ,3 i4 st 9 $ 6 5 3 r7 5 i,bu 2 1 6 ,4 t5 io 5 2 n , 2019 –2021 $ $ $ 2 4 1 ,,1 $ 4 63 7 3 76 8 8 ,0 , 7 37 50 $ $ $2 4 $ 1,,8 8 1 43 6 0 9,9 ,5 4 7 4 37 5 that are visible in the PRRL for a given year. For instance, if a participant has a 457(b) plan and a In 2019, 49.5 percent of participants had 0 20% 14% 14% 14% least some equities in their retirement with $1,441 in 2019 (Figure 5). Among participants in their 50s with 31 years or more of tenure, the F in ig tu h ries st 8 - ud Pey rc, ep nlta ag n spon e of Em so plrs oye sh es o M ulak d icon ng a si Cd oe nr t rh ibo uw t tionh , e b DC y Ag b e a an la dn T ce ens ura en d DB plan benefits can better the median contribution am 11 on -2 g0 t Y he oa se rs wi th 0–4 years 6.o 3f % t enure 20% was $1, 6154 .9% in 2021, com 7.p 4a % re d with 20% Figure 1A, Age Distribution, 2019................................................................37% ....................... 6 11–20 Years 25% 10% 38% 17% A A A Al l l ll l l l A A A lA ll30% llll l $ $ 1 $ 2 ,4 2 ,4 3 2 $ 0 ,2 8 1 5 3 0 9 ,3 65 $ $ $ 1 2 5 ,,3 $ 7 59 1 7 ,1 2 4 8 6 , 0 26 1 $ $ $1 3 $ 6,,1 1 5 06 2 ,1 8 ,0 2 8 8 6 64 401(a) plan, and the respective balances for the year 2019 are $6,000 and $2,000, then the account 60% percent of their portfolio allocated to TDFs. In plans remained similar between year- median account balance increased from $123,394 in 2019 to $162,702 in 2021. work together to improve workers’ retirement security. K $2, EY 299 f FINDING or tho Sse with 11–20 y 21-3e 0a Y rs eao rf s t enure (Figure6 11 .3% ). 6.9% 7.5% 33.1% 0% 49% 2 21–30 Years 24% 10% 37% 17% AgF e ig G u ro re u 1 p B, Annual Salary Ten Dis urtribu e Gro tio upn , 2019 ................................ 2019 0% ................................ 2020 2 ....... 021 6 b Aa S la Sn Ece T A foL r L th O is p CAa T rt IO iciN pa nt for 2019 is $8,000. If this participant contributed $1,000 to the 457(b) 0% 41.8% 2021, 98 percen50% t of those participants still had end 2019 and year-end 2021. 50s All 5.9% 6.4% 6.6% 43% 2021 31+ Years 22% 9% 32% 15% 2019 2020 2021 20s All38% 34% 85% 77% 70% plan and did not m 20a k ke - 5 0 ak contri 5b 0k u t - i7 o5 nk to 401(a) in 2019, then this pa 0-r4 t iYe cip ar ant woul5 d -1 h 0a Ye vear a total A few Fig u kre ey 1 in C s, ig Te ht nsu f re ro Dis m ttribu he 1. tio 1 n m , i2 lli 0o 1n 9 c ................................ onsistent participa................................ nts over the period .................. from year- en 6 d 2019 S 0 pe AM rce PL nE t SE allo Lca EC tio Tn IO to N C TD RIT Fs. O ERIA f the remaining 2 40% 4 0-4 Years 5.3% 5.8% 6.1% In A t g h e is r Gro ep uo pr t, thE eq iu niv ty e st Fu m ne dn s t oB pa tl io anc ns ed ar e grou Tp arg ed et in -Da to si te x bro Bo a nd d a Fss und ets cl asse Stasb : le eq -V ui atly u e funOt ds, he ba r lanced Figures 12 and 13 present the average employee contributions as a percentage of annual salary. The 32% Figure 9 60s All 19% 8% 29% 14% As the age of par7 t5 ici k p - a 1n 00 ts k incre ov a e se r 1 d 0, 0k 11-20 Year 21-30 Year 29% contribution of $1,000 in 2019. 0–4 Y U en alre sss o therwise speci 87% fied, an H “ aa ve cc Eo qun uitt y 78% bala No nce Eq ”u re ity fers t 71% o th e sum of to year-end 2021: p ercent, one-third of them had their entire Figure 1D, Plan Type D 5is -1 tribu 0 Yetio arsn , 2021 ................................ 6.2% ................................ 6.8% ............. 7.2% 7 30% Funds Funds Funds funds, target-date funds, bond funds, stable-value funds, and other (which includes real estate contribution rates suggest t M he at d a ian geE a m np dl t oy ee ne ur C eo h na tr v ibu e a t we ions a by ke A r ig m ep , 2 a0 c1 t o 9 –n 2021 the contributions as a The 1.1 million participants analyzed in this report are a subset of all participants in the PRRL 0–4 Years 33% 16% 54% 24% the allocation to equity funds 5–10 Years 65% 63% 60% balances across all plans for a participant in a given year. portfolio in stable-value funds and 16 percent 11-20 Years 6.1% 6.7% 6.8% 20s Fig ure 2, Ac1 c 7o .8 u % n t Balanc 0 e .3 Dis % tribution, 62 70 .1 1 % 9 –2021 ................................ 7.1% 7.6% ........................ 0.2% 7 investments, in-p 20% lan annuities, and investments that cannot be classified). percentage of salary relative to the contributions in dollar amounts. For instance, the average • $2A ,00c 0count balances grew steadily from 2019 through 2021. DC plan balances for consistent Database. These consistent participants had accounts at the end of each year from 2019 through 2021. 11%11% $1,779 increased, peaking5 f– o1 r 0 t Y ho ese ars i n their 40s 30% ( Figure 17). F 8% or instance, the av40% erag e allocations to e 18% $1q ,56 ui 0 ty $1,729 15.6% 30s All 81% $178% ,695 75% 10% 8% 21-30 Years 6.1% 8% 6.6% 7.0% had their entire portfolio in equity funds in 2019 $1,598 8% 6% 7% 30s 27.7% 1.2% 54.9% 6.8% 9.2% 0.4% contribution made by participants in their 40s as of 2021 was $3, $177, 1,515 which is almost t $w 1,5i2 c5e the 5% Figu pre art 3 ic , ip M ae n10% a ts r n an osed e M ach ed yia ea n r A fro cm co y $ u e 1n ,a 4t 8 r5 -B ea nla d 20 nc19 t e, 20 h1 ro 9ug –2h 0 y 21 e a ................................ r-end 2021. Overal.......... l, the a 8 v erage Limiting the analysis to the set of consistent participants removes the effects 8o.7 f% participants and plans DEMOGRAPHIC CHARACTERISTICS OF THE CONSISTENT SAMPLE 11–20 Years 20% 7% 29% $1,421 13% funds for participants in their 20s, 30s, and 40s$ we 1,410 re 17.8 percent, 27.7 percent, and 36.1 percent, PLAN TYPE DISTRIBUTIO 0N –4 Years 86% 80% 75% The average equity exposure of all a $1g ,35 e0 groups decreased by 1 percentage point from 2019 (67.3 $1,500 31+ Years 5.1% 5.4% 5.5% before reallocating to TDFs. 40s 36.1% 1.9% 38.9% 9.4% 13.4% 0.6% average contribution made by participants in their 20s. However, the average contribution as a $1,188 plan balance rose $1,1 f6 ro 1 m $43,839 in 2019 to $61,886 at year-end 2021 while the median balance entering and leaving the database. Information on all characteristics is not available0 f.o 7% r every 0% Figure 4, Average Account Balances, by Age and Tenure ........................................... 9 re spectively. Howe 21 ve –r, 3 t 0h Y e e a sh rsa re in e19% quiti es decreased 8% am ong participan 28% ts in their 50s (35 p13% ercen t) and 5–10 Years 74% 73% 72% p60s erce nt) to 2021 (66.3 perce Alln t). This decline in total6 e .1 q% ui ty exposure wa 6.5 s% con centrated6 in .5 % pa rticipants Figures 1A–1C bel $960 ow show the demographic characteristics for the individuals in the consistent 50s 35.0% 2.5% 32.2% 11.1% 18.9% 0.7% P pe ub rce lic n -tse ag ct eo orf s em alp alro yy ie nrs c 2021 an o fo ffr ep r a ar w tici id pe a r na ts i ng n e t o hfe pl ir a 40s n ty wa pes s , wi 7.0t h p e m rc ae nn yt ,o wh f th ich es i es o em np ly lo 1 y e prs erce offn etri an gg e rose from $10,365 t 0 -o 1 $16, 0k 8641 . 0 Th k-i5 s g 0k rowth 5 0 wa k-1s 00 wi k desp 1re 00a k- d2 a 0cr 0koss p 200 ak rto ici r m pa on re ts; the median partic $i1 p ,0a 0n 0t (e.g., salary information is unavailable for most participants); each figure consists of the 60s (28.5 percent). On the other hand, the average allocation to target-date funds decreased as the 31+ Years 15% 8% 24% 12% Figure 5, Median Acc0 o- 11 u 4n Y –t 2 eB a 0a r s Yla ean rs c es, by Age an 5.5 C 75% % d o T m e b n inu are tio ................................ n of Fu 5 n 74% .9 d% s 100% Ba ........... la 6 74% n .1 c% e d 10 F unds in their 40s, 50s, and 60s (Figure 15). sample. These figures demonstrate the characteristics of individuals as of 2019; characteristics of p p60s o art init c ih pia gn ht es m r thu al 2 n t8 i t p .h 5 le e % pl co an nt t riy bp ue t3 is o ..1 A n% m s suc adeh by , so th m 2o 9 e se . pa 4 i % n r t t ici he pia r n 2 t0s s 1h 1 ( a .6. 3 v% e 1 a pcc erce oun nt ts o )2 (7 Ff .i2 di g% ure f fe r12 en)t. t Th y0 pi.e s 9 a s. % Th n ale y m sis ost 2019 2020 2021 year-o$511 ver-year change in balances from 2019 to 2020 was $3,045, and the median change in entire sample of individuals for which information is available on the factor(s) being studied. age of participants increased, while the allocation to stable-value funds increased with age. For All All 26% 12% 41% 19% 5-10 Years 6.4% 6.8% 7.1% 40s All 84% 82% 80% 100% Bond Funds 100% Equity Funds Figu $5re 00 6, Growth in Average Account Balance, by Age and Tenure ........................ 11 individuals may vary over time. For example, individuals may change jobs or receive pay adjustments, com All mon plan ty 3 p 0 e.5 in % t he samp 1l.e 8 i % n 2021 wa4 s 2 a .6 457 % (b) plan 9 , .2 wi % t h 59.3 perce 15.n 6t % o f particip 0a .6 n% ts h aving likely reflects the fact that participants’ salaries increase with age and tenure. Additionally, the average balances from 2020 to 2021 was $1,941. Similarly, the average year-over-year change in example, the average allocation to target-date funds among participants in their 20s was 67.1 percent 11-20 Years 6.5% 7.1% 6.9% 0–4 Years 88% 84% 80% 100% Stable Value Funds a Tn hd e a th ge ese an ch d t ae nn gure es a cro re r ss ef-lte acb te ul da itn io tn hs pre e PRs R eL nt D ea dt i an b t ah se is r . No ept oe rt t h aa re t b te a n se ure d o an n ch d sa arla act rye ir n ist foirm cs a ot fi t oh ne i s not Figure 7, Percentage of Employees (flagged as active) Making a Contribution, con onet , f rio blut loiwe on i d n b cre y a as401 ed a (a m ) o pn la gn t h (39. ose 6 wh peo rce co nn t)t.ri Th but e l ee da fst or co eam ch m a og ne pl /te an nure typ g ero s iup n tih ne g sa fro m m p 20 le we 19– re 2021 403,( b) balances from 2019 to 2020 was $11,323, and the average change in balance from 2020 to $0 in 2021, compared with 29. 21 4 pe -30rce Yea nrts among particip 6a .1 n% ts in their 60s. Th 6.4e % a verage alloc 6 a.7 ti% on to stable- 5–10 Years 79% 78% 77% by Age ............................................................................................................................... 12 a pv aa rtil ic aib pla en fto s r aa s o ll pa f 2019 rticipa (tn hte s. f irst year in the sample period). Thus, the age and tenure cross-tabulations plans and individual retirement accounts (IRAs), with each representing less than half of a percent of matching the patte 20s rn of the average30s dollar amounts con 40stributed. 50s 60s 2021 was $6,724. 31+ Years 5.5% 5.7% 5.8% value funds among participants in their 20s was 7.6 percent, compared with 27.2 percent among 11–20 Years 80% 80% 79% sh ould be interpreted as analyses of participant cohorts whose characteristics are fixed as of 2019. 2019 2020 2021 Figure 8, Percentage of Employees Making a Contribution, by Age and Tenure .... 13 the participants. Given this distribution of plans, it should be understood that the results from this All All 5.8% 6.4% 6.7% participants in their 60s. 10 23 12 20 17 22 24 16 25 21 19 14 15 18 13 11 8 3 5 6 4 1 2 7 9