Key findings:

Consistent 401(k) participants’ exposure to equities was relatively unchanged between year-end 2010 and year-end 2018. At year-end 2010, 93.3 percent of consistent 401(k) plan participants held some equities (equity funds, target date funds, non-target date balanced funds, or company stock). This was little changed at year-end 2018, with 93.5 percent of consistent 401(k) plan participants holding equities. Movement toward holding some equities was highest among participants in their twenties: 92.4 percent held equities at year-end 2010 and 94.2 percent held equities at year-end 2018.

Consistent 401(k) participants — especially those in the older age cohorts — increased their exposure to target date funds between year-end 2010 and year-end 2018. At year-end 2010, 49.9 percent of consistent 401(k) participants held at least some target date fund investments in their 401(k) accounts, and that share increased to 56.4 percent at year-end 2018. All age groups increased their exposure to target date funds. However, the largest net movement toward target date fund use over the period occurred among consistent 401(k) participants in their forties, fifties, and sixties. Participants in their twenties had the highest use of target date funds in both time periods but experienced the smallest net change.

Most consistent 401(k) participants who were fully invested in target date funds at year-end 2010 remained fully invested in target date funds at year-end 2018. Among consistent 401(k) plan participants who were fully invested in target date funds at year-end 2010, nearly 75 percent remained fully invested in target date funds at year-end 2018. This high level of persistence in target date fund investing was observed across all participant age groups.

Figure 5 Figure 6 Changes in Zero Allocation to Equities Among Consistent 401(k) Participants Between 2010 and 2018 Figure 2 Changes in 100 Percent Allocation to Target Date Funds Among Consistent 401(k) Participants Between 2010 and 2018 Percentage of consistent 401(k) participants by age, year-end 2010 and year-end 2018 A A Fi H wlt ll a old it ghoug h a ur g eee n, 10 7, g h a Sa r0 p oup Cnnu r ha ae h, s in t nge rc a D e l up nt a s in Ze he nie a dlloc a lsa tSc em rs of ao hr tp ion to ta A le alloc ss t he of , a a cE tnd onsi ion to Ta BrRI gE e D s /I le tto e C na dm nt I a t40 e B re 40 g s a fun e 1( t r1( it on c kD k d )S e ) a s i d ttC p o a en b his a t c a Fu rk tb ic m ot a nds a ipa . se h 20 n20 d nt p A 21 B rm s m 10 ov o ong b n ide . a od “ nd vD e C M v e d onsi a 20 fin a lua a r1 w k e8 st d b e a. le t y e C I n I n o fr ont n p t om d e40 re trspe he ibut x 1( ful e rk c s w ion l a )t iv P or ll e a oc d P s of rts, ne la ic an P tipa ions 40 a a nt 1( r r ly ts B tic k o )7 ipa e e 5 pq t la w nt p uit n a e e s’ re ie cn 2010 A c e s b c c nt ount tie vof tit w ie ea s, end n First Sarah Holden is Senior Director of Retirement and Investor Research at the Investment Company Institute (ICI). Jack Changes in 401(k) Plan Asset Allocation Among Consistent Percentage of consistent 401(k) participants by age, year-end 2010 and year-end 2018 8 The Investment Company Institute tracks reallocation of account balances and changes to the asset allocation of H c y bonsi e a aa la lf rnc -20 s etnd e e 21 s, a nt 2018 20 .” 40 ss I10 C 1( e ................................ It a k Re and )lloc p sea a ya rettra ic ion, crh Re ipa -end nt an p s w 20 d or loa t1 it 8 (h th Se n a . For ................................ pe c te tir iv m e 40 xa itbye 1( m r a)p c k. rle )oss A a , vc6.4 ac ila w oun ide b ple e t s r c a cful re t................................ oss nt w ly w of sect inv wc .ic e onsi ions s i.or tes d g t of e /s in t nt yp st a a 40 r e rg tm 1( ic e/f tipa k ................................ ile d ) a nt p s/ ta es, 2 r tfun 02 ic cripa 1 oss d-s a 09 nt -sec s in t /2 t y1_ e tiona arhe rp-te ir _r l a n ...................... d tew na c20 su ely nt 10 rses v ie e s ha w yq a e2. rre e d p not ful d 100 f . 10 ly VanDerhei is Director of Research at the Employee Benefit Research Institute (EBRI). Steven Bass is an economist at 1 Month-end level Participants, 2010 M – o2 ve0 d 1 Aw8 ay c Exp ontrib osure ution st o for Eq a u sait mp iele s C of hra eng cord ek d ee Lp it et rs le . Th Amo e surve ng yC re on su slts ist ind ent ica 40 te a 1( mino k) P rity art oicipa f DC pnt lan s p Betw articipe ae nts n 20 cha10 nge a the nd ir 2 a01 sse8 t w inv pe erll sui e cst ent ed t e of in t d tthe o are ir gxa eatc m d count ini ate ng fun inv the de s st im ae tp d y a e in e ca t rof -e q nd uit con ie 20 si s a s 1t8 e t . nt yThi e a pra s high -retnd icipa 2le 01 tion v0 e, l o in 401 com f pe pra (si k re st ) de p nc la wns it eh . in t 3.0 Cra oss rp gee rstce e d cnt a tions t ea tfun yce ha d a rinv nge -end e st in20 ing com 18 w a p (Fi s osi gur tioen 4). ICI. Mike Cross, EBRI Senior Programmer and Data Specialist, provided data assistance. This Issue Brief was written 380 100 Percent in Moved Away From 100 Remained at 100 Moved to 100 100 Percent From Zero by Remained at Moved to Holden, Sarah, Jack VanDerhei, and Steven Bass. 2020. “What Does Consistent Participation in 401(k) Plans Generate? allocation in any given period. For example, 10.6 percent of DC plan participants changed the asset allocation of their account By Sarah Holden, ICI; Jack VanDerhei, EBRI; and Steven Bass, ICI fr A ob tom ser the y v e e ot a dhe r atc r o re oss ynd ea ra of ll p be the caarus ta icg e ipa e t he spe nt sele acg treum cg tion o r, oup consi s, a f dst alte thoug a n tp r 40 ov h th 1( ide ke )r s p low a arnd te icst ipa sa le m nt vp e sle l o in t of f p he p alra ir tns ic si ipa xt us ie nt ing s s r als a e m o giv a m ini eov n p ng ed r10 ov aw ide 0 p ay re fr r vca om ernt y, 10 a an lloc 0 p d b ae e tr e ccd a e us nt to e wit 360 h assistance from the Institute’s research and editorial staffs. Any views expressed in this report are those of the Age 2010 Percent by 2018 Percent Percent by 2018 Net Change in 2018 Change As g e in ConsisZ te ent ro 4 in 01 2 (0 k1 ) 0 Participa 2018 nts’ Allocatio 4ns 01 t (k Zo e ) rEqu p oartiiti cie ps a Z ne t a ro n a b ly ys 2 is 018 Net Change Zero in 2018 October 14, 2021 • No. 541 Changes in 401(k) Plan Account Balanc 4es, 2010–2018.” ICI Research Perspective 26, no. 6, and EBRI Issue Brief, no. ba340 lances, and 6.3 percent changed the asset allocation of their contributions in 2020 (see Holden, Schrass, and Chism 2021a). 40 t c a onc r1( gek et) n d tp raa atr tet ions ic fun ipa d in e nt s fr s j qom oin o uit ie 20 s: r10 le 8. a6 tv o e p20 e prla c 1e 8 ns nt (.71 of I n a p ce onsi rdcd eit st nt ion, e )n w t a e 40 s se xa 1( mk e ini )n a p ng am rtcong ic ha ipa nge c nt onsi s in t s in a ste he g nt gir r4 e si 01 gxt a(tie k e) s a p ss ha ar ed ttic 100 a ipa lloc nt p as in e tion a rce tnt he m of ir ong ttw he e tir he nt a ie e cs. c nt ount ire 20sauthors, and sh 60ould .7% not be ascribed -1 t7 o .8 t% he officers, trustee 4s, or 2.9% other sponsors of 3.2 E% BRI, EBRI-ERF, or -14. 6 the % ir staffs. 46.1% 20s 7.6% -5.2% 2.4% 3.4% -1.8% 5.8% At both year-end 2010 and year-end 2018, the vast majority of consistent 401(k) plan participants had at least some 320 514 (October). Available at www.ici.org/pdf/per26-06.pdf and www.ebri.org/docs/default-source/ebri-issue- For the most recent update covering the first half of 2021, see Holden, Schrass, and Chism 2021b. 30sd inv ate ast ba ese d in e maq y 3 uit 0 ne .6 ie g % s a lect t y im ea pror -etnd ant20 va1r-8 0 ia , .t0 c ion in % ompaa re ctdiv w ity it h am 6.1 on p g 2e 2indiv r.c 6e % ntidua at y l p ea arr-te icnd ipa20 nt 3s 18 .. 2% To . explore the ful -4.l 8sc %ope of ong 25 oing .8% Neither EBRI nor EBRI-ERF lobbies or takes positions on specific policy proposals. EBRI invites comment on this 30s 4.8% -2.7% 2.1% 2.7% 0.0% 4.8% expo 300 sure to equities, whether through equity funds, the equity portion of target date funds, the equity portion of non- I brnt ief/ re o bduc ri_ib_5 tion 14_long -k-1oct20.pdf. 40s9 participation in 1840 .3% 1(k) plans, and to -5 unde .1%rstand how 401(k 1)3 .p 2la % n participants ha3 v.e 0 % behaved over re -2 c.e 1nt % years, it is 16 .2% 280 40s 5.3% -2.5% 2.8% 2.4% -0.1% 5.2% research. See Sabelhaus, Bogdan, and Schrass 2008. target date balanced funds, or company stock. The share of consistent 401(k) participants who held at least some Figure 4 50sThe 260 EBRI/ICI 1 40 4.4 1( % k) database, whic-3 h is c .8%onstructed from t 1he 0.6 a % dministrative recor 3.d 1% s of 401(k) plan-0 s, r .7e % presents a1 l3 a.r7g% e importa 50s nt to analyze a 6 c.onsi 6% stent group -3 .of 0% participants (a 3. 6 long % itudinal sa 2m .5p % le) who hav -0 e. 5 b% een part of the 6.1 % database for Changes in 401(k) Plan Asset Allocation Among Consistent equities in their 401(k) accounts changed little from year-end 2010 (93.3 percent) to year-end 2018 (93.5 percent) 10 Holden, Sarah, Jack VanDerhei, and Steven Bass. 2021a. “401(k) Plan Asset Allocation, Account Balances, and Loan Be 240 cause no target date funds have a 100 percent equity allocation, investors with a 100 percent allocation to target date Changes in 100 Percent Allocation to Equities Among Consistent 401(k) Participants Between 2010 and 2018 5 60s 15.1% -3.4% 11.7% 4.8% 1.4% 16.5% cross sect 60sion, or snapsh 8ot .8% , of 401(k) p-3 lans .6% at the end of 5e .2 a% ch year. It is3 a .9 c % ross section o 0.3f th % e entire pop 9.ula 1%tion of an extended period — in this case, year-end 2010 through year-end 2018. Suggested citation: Holden, SarA ah, bout Jack Va the nD eE rh B eR i, a In /IC d Ste Iv 4 en B 01 a( ss k) , “ C Da hange tabas s in 4e 01 (k) Plan Asset Allocation (Fi220 gure 3). Increased equity exposure was concentrated among participants in their twenties: 92.4 percent of them A Pa ctivir tyt in 201 icip 8.” a In CIt Re s, sea 2 rc0 h 1 Pe0 rspe –2 ctiv 0 e1 278 , no. 2, and EBRI Issue Brief, no. 526 (March). Available at funds would not be Pe coun rce te nd ta a gs e ha of v cing on s100 iste n pte 4 rc 0e 1nt (k) ep qa uiti rtic es ip . ants by age, year-end 2010 and year-end 2018 All 17.9% -4.6% 13.3% 3.6% -1.0% 16.9% 401(k) A plla l n participants, a 6.7% nd it represent -3.s a 0% wide range 3 o.f7 % participants — 2.8 inc % luding those -0.2 w %ho are young 6. 5a% nd Am 200 ong Consistent Participants, 2010–2018,” EBRI Issue Brief, no. 541, and ICI Research Perspective, vol. 27, no. 10 held equities at year-end 2010, and that share increased to 94.2 percent at year-end 2018. Consistent participants in www.ici.org/pdf/per27-02.pdf and www.ebri.org/docs/default-source/ebri-issue-brief/ebri_ib_514_long-k-1oct20.pdf. 11 The EBRI/ICI project is unique because of its inclusion of data provided by a wide variety of plan recordkeepers, 180 indiv Samp idua le ls of wC ho onsis are ne tew nt t o 40 the 1( irk) job Ps, a arts w icipant ell as old s, 20 er10 pa– rt2018 icipant s and those who have been with their current By For Sa a ra deh tailH ed old ana eln ys, isIC of I; 40 Ja 1(kck Va ) plan p nD articip erh ae nts i, ' EBRI use of ;ta a rnd get dS atte e ve fund n Ba s by sps a, rtIC icipIa nt age or job tenure in the year-end (October 2021). their sixties slightly reduced their exposure to equities from 91.2 percent of participants to 90.9 percent over the same S&P 500² Moved Away From Moved to 100 Note: A 160 target date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it 3 Note: Equities include equity funds, company stock, the equity portion of target date funds, and the equity permitting the analysis of the activity of participants in 401(k) plans of varying sizes — from very large employers for many years. 2018 cross-sectional EBRI/ICI 401(k) database, see Holden, VanDerhei, and Bass 2021b. Among 401(k) plan participants Among the 401(k) participants with accounts at the end of 2010 in the EBRI/ICI 401(k) database, 1.9 million are in the Holden, Sarah, Jack VanDerhei, and Steven Bass. 2021b. “Target Date Funds: Evidence Points to Growing Popularity period. The decline in the ownership of equities among older participants is consistent with standard financial advice 140 100 Percent in 100 Percent by Remained at Percent by 100 Percent in approaches and passes the target date of the fund, which is usually included in the fund’s name. Funds include mutual funds, bank portion of non–target date balanced funds. Funds include mutual funds, bank collective trusts, life insurance corporations to small businesses — with a variety of investment options. Copyright Information: This report is copyrighted by the Employee Benefit Research Institute (EBRI). You may copy, holding target date 6funds at year-end 2018, 88 percent held one age-appropriate target date fund. 120 7 c a onsi nd A sp te pnt ro p sa ria m tp e le Use . These by 40 1( consi k) P st la en P nt p aa rtric tic ipa ipa nt nt s." s ha ICd I Re accsea ount rcs a h Pte trhe spe e cnd tiveof 27 e, ac no.7 h yea and r from EBRI 20 I10 ssue thr B oug riefh 201 , no. 53 8; 7 they Age 2010 2018 100 Percent 2018 Net Change 2018 colle ec m tip ve ha tru sizin stsg , ld ife e cin re sa usi rang nce inv se ep st am rae te n ta r cis ck o u an s indiv ts, and id a ua nyls p a op op lerd oa incvh r ese tm tireenm t p ero ntd . u ct primarily invested in the security indicated. separate accounts, and any pooled investment product primarily invested in the security indicated. The print, or download this report solely for persona Al T and non A c om GmL ercA ial use N C , prE ovide d that all hard copies retain any and 100 12 make up a longitudinal sample, which removes the effect of participants and plans entering and leaving the database. The( c Se 20s on ps te ism teb ne t rs )a . m Av pa le ila is b6 le 1 .4 . 9 % a tm w illw iow n .ic 40i.or 1(kg ) /s p -4 ly a .6 st n% e pm art /f ic ile ips/ an 20 ts 21 wi- th 09 1 .a 8/pe c % co ru 27 nt- 07 ba.p lan dc f e 1as .2 nd a % t w thw e w e.e ndb o ri.or f -3 ea .g 4 c/do % h ye cs/ ar dfe ro fa m ult 2- 0sour 3 1.0 0 % th cro e/e ug bh ri - 2018. For the co n cs oimp stele ntte s a up md pa le te i sfro 1.m 9 m the illi o yn e a 4r0 -e 1nd (k) 2018 plan p EB art Ric I/ip ICI ant4 s01( witkh ) a dc ac ta ob ua nste b , asle ae n cH eo sld aetn, th e V a enD nde o rhe f ei, acah nd y eBa ar sfsro 2021 m a. Figure 3 Sources and Types of Data 80 all copyright and other applicable notices contained therein, and you may cite or quote small portions of the report Age g30s roup is based on the 7 .p 3a % rticipant's age -4 at. 5 ye % ar-end 2018. 2.8% 2.4% -2.1% 5.2% Ov issu ee r -tb his 2 rie 0 1 f/ p0e e r tb h iod rro i_i u , b g t_5 he h 2 37 0 consi 1 _4 8.01 A st g k e e tnt d gfs ro p-a u 9s r pte ic is pipa 21 bant .p se s dd ’f .a o g ng trhe eg p aa te rt ia cliloc pan att'ion to s age a etq yuit eaie r-e s w nda 2 s r 01 e8 la . tively unchanged, from 65.1 60 Most Consistent 401(k) Participants Hold Equities in Both 2010 and 2018 13 Bloomberg Barclays US The EBRI/ICI 401(k) database environment is certified to be fully compliant with the ISO-27002 Information Security Audit provided that you do so verbatim and with proper citation. Any use beyond the scope of the foregoing requires EBRI’s 40s 9.3% -5.3% Fi4 g .0 u% re 1 2.6% -2.7% 6.6% perc 40 ent So of urc 40 e1( : T ka ) bp ula lan a tion ss s e fro tsm at EB yeR arI/-Ie Cnd I Pa 20 rti10 cip a to nt65 -D.4 p irecte erd c e R nt et ia re t m ye ea nrt- Pl en ad n 20 Da 1t8 ( a CFi og lle ur ce tio 1) n . Pro How jece tver, their allocation Source: Thi Se Tav b s p e urla a al EB tp ioenrs RI p frro ov am nd ide Pe EB Irc s CR e Ia n n up m I/tIa C e gm I ePa d b o ae ft rt r e cis p c oof in ps raa ov is n ttlong e ide -D nti re d 4 it 0 c rudina 1 e te (k cd or ) R p dl a e s on a rt tna ire icim ly pa a si e c nt n s of tiv s t e Pl b yp a 40 a n ag r1( D teic ,a k ipa y t)a e p a C nt la r-e on s in 401 lln ep d ca t2 iro 0 tic n 1 0 ipa Pro ( k a)n nt jd p es d la c yte ns a ra r-e for wn n fr d w 2hic om 018 h th thee E yB kRI ep/I t CI Aggregate Bond Index4 standard. Moreover, EBRI has obtained a legal opinion that the methodology used meets the privacy standards of the Gramm- p rior express permission. For permissions, please contact EBRI at permissions@ebri.org. 20 Mor 50s ningstar. 2019 Ru. ss Mor 1e 0l.l 0 2 nin % 00g 0st ³ ar Lifecyc-5 le. 8 A % llocation Inde 12xe 4.s 2( % June). Chic 1 ag 2o: .5% Morningstar-3 , I .3 nc % . Available at6 .7% 2 Average Asset Allocation of 401(k) Plan Accounts by Participant Age to ta40 rge 1( t kd)a d te a tfun abadse s . inc The reaE se m dp su loybest e aB nt eia ne lly fit: Re from sea 16 rch I .6 p ns etrit cut ent e ( of EB aRI gg )re a gnd atet he 40 1( Inv k)e p stla m n ent ass C eom ts a pta y ny ea Irns -etnd itut 20 e 10 (IC tIo ) records for year-end 2010 through year-end 2018. These plan recordkeepers include mutual fund companies, Leach 0-Bliley Act. At no time has any nonpublic personal information that is personally identifiable, such as a Social Security ht60s tps://indexes.mornin 8.6 g% star.com/resour -4c .8 e% s/PDF/upload/Mor 3.8nin % gstar%20L2 ifeti .3% me%20Alloc -2 a.t 5ion % %20Summa 6r.y 1_0 %62419 Consistent 401(k) Plan Participants Holding Equities 23.5 percent at year-end 2018. a bls ank o p s, ins roduc urea nc ane a c nnu oma pl c anie ross s, a -sect nd P iona ce onsu rce l a n ltna ting ag ly esi fir o s, w m f 4 s. A 0 hic 1( lth k) hou cp olv a ge h th nr s a cco 40 e E 1( u Bk n RI ) t b p /I a la C la n I n 40 p ce a1( rs tic k)ipa prnt oje s c w t itha h a s c w olle idec tre ad nge da tof a from Among consistent 401(k) participants between year-end 2010 and year-end 2018, there was net movement toward Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 R Exp eposure ort ava til o aTa bilr itge y: tThi Da s r te e p Fu ortnd is sa v H aa ila sb Ile ncreas on thee id nt e Armo net n ag t w Cw ow nsis .ebrti.or ent g 40 and 1( ak) t w w Pa wrt .icicipant i.org s Between 2010 number, been transferred to or shared with EBRI. All 9.2% -5.2% 4.0% 2.5% -2.7% 6.5% Year-end 2010 Year-end 2018 %20FINAL.pdf. Year-End 2010 participant experience. But that snapshot cannot determine how 401(k) participants’ asset allocations change 1996 through 2018, the universe of data providers varies from year to year. In addition, the plans using a increased exposure to target date funds. For example, analyzing the group of consistent 401(k) participants at year-end and 2018 14 Account balances are net of unpaid loan balances. Thus, unpaid loan balances are not included in any of the eight asset Annual percentage change in to Bta alla r nc etu ed rn Fu in nd ds ex ov pae rtric tula he ry p er aov rs.ide Fo rr ce axa n ch mp ale ng , e b e ov caeus r teim of e. cRe hanging cords w saem rep le enc s of ryp ptreov d ide to c rs, p once laans l th , a end ide pnt arit tic y ipa of nt em s, ploy chaenge rs asnd in asset 2018, the data show that 6.5 percent, on net, moved away from a zero target date fund allocation — 50.1 percent of Table of Contents 95.2% 95.2% Pla Nn Sp ote: onsor Equitie C sounc incluil of d 94 e. 2 e % A qm uite yr fic ua n. ds 20 , c 20 om . 6 p3r and y A snnu tocka , l Sur the ev qe uyit y of po Prt rofit ion o Sha f tarrg ing et 2, a d 3nd ate 40 fun 1( ds k) , a Pn la dns th: eRe eqflect uity ing port20 ion1 o 9f P nla on n- 94.7% 94.8% S&P 93. 4 5% 009 ²3.9% 93.5% 92.4% 93.3% Target C Cha cahanges teg ng orie ess in de Con sin crib s C e is do te . ns nt 4 is 0t 1e (knt ) Pa 4 rtic 01 ip( ak) nts ’ P Al ar lot cicipant ations to Ta s’ rge All t Da oca te F tG iun 9o I1 C .ns 2 ds s% 9 t a 0o .nd 913 % E quities and Target Date allocation for the entire database are not a reliable measure of how individual participants have acted. A employees but were coded so that both could be tracked over multiple years. For each participant, data include this group had no target date funds at year-end 2010 and 43.6 percent had no target date funds at year-end 2018 Int ta rrg odeuc t d ta ion te ................................ balanced funds. Funds................................ include mutual funds, b ................................ ank collective trusts, li................................ fe insurance separate a .......................... ccounts, and any 4 Date Company Memo: Experience. Chicago: Pla Equ n Sp ity onsor Counc Non il of -TaA rge me t rD ic aa te . Bond Money Other Stable Funds Between year-end 2010 and year-end 2018, consistent 401(k) participants’ use of target date funds increased, with 15 c donsi ate s of teb nt ir tsa h, m frp om le is w ne hicch a essn arayg e t 1,o g 2a roup ccur a ist ealy ss g igne auge d; R cdha u as tng s ee of le l s, 2hir 0 su 0e 0, c³h a from s in e whic xpo h a su tre enur to ee q ra uit 2nge ies or is a t ss ar igne get d d; ate fund 4 (Fi Th gur ise s y 7s )te . Thi m o s ne f clats c sha ificnge ation re dflect oes s no 12 t c.8 ons pe idre cr ent the m nu ov mb ing er froom r ty p ze er so otf ad ris ge tinc t dt ainv te e fun stme ds t nt o oapttions least p som resent e, e6.3 d to p ae rgciv ee nt n pooled investment product primarily invested in the security indicated. The consistent sample is 1.9 million 401(k) plan Funds Funds Balanced Funds Funds Funds Value Funds Stock Other Unknown Equities Age Group Sample of Consistent 401(k) Participants, 2010–2018 ........................................................................................... 5 more participants moving into than out of these funds, on net. At year-end 2010, 49.9 percent of consistent 401(k) Changes in 401(k) plan asset allocation are determined by three factors: use, for individual 401(k) plan participants over time. This paper will examine the accounts of consistent outstanding loan balance; fun 38.d 8s in the participant’s investment portfolios; and asset values attributed to those pap rticip artica ip nt, an tb sut w ra iththe acr, c o the un t ty ba ple asn o cf es o p ations t the c eh no ds o efn eb ayc h p ayrtici ear pfa ro nts m .2 P 0la 10 n tS hp ro ons ugo hr 2 Cou 018nc . A ilg o ef g Ame roup ric is a b 2020 ased ind onic ta hte e s that in Rus m ovsell ing 20 from 00 inde somx. Ta e to ze corm o, aa , nd WA37 : Fr .3a p nk er Rus centsell stic Ckoing mpw any ith. ze ro holdings in both 2010 and 2018. Net movement toward 20s 24.4% 46.3% 3.4% 3.6% 5.2% 5.4% 9.1% 0.8% 1.8% 76.5% Bloomberg Barclays US Aggregate participants held at least some target date fund investments in their 401(k) accounts, and that share14 increased to 56.4 participant's age at year-end 2018. Change fun pars in C d tic s. A ipan a nt onsi s, t ccsou ha tent nt t is 40 b , at1( la ho nc kse ) eP w a for rho tic eipa m acah p nt int s’ a aine r Atlloc icd ipa a atnt cions c ount is tthe o s in e E su quit m a ie cof h ye s a the nd a rp Ta fr ar om rtg ice ipa 20 t D nt 10 at ’s a et hr Fu ss oug nds ets in a h ................................ 2018 ll funds. . Plan bala ........... nces 5 2019, the average number of investment fund options available for participant contributions was 19 among the 602 plans target date fund use was hig 3he 2.4 st among participants in their forties, fifties, or sixties, and lowest among those in their 30s 34.1% 34.7% 4.6% 4.9% 2.3% 5.7% 10.3% 1.4% 1.9% 77.4% Bond Index4 • Gains or losses on the investments held in the 401(k) plan account. percent at year-end 2018, with the growth occurring across all age groups (Figure 3). In both years, younger 401(k) Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project S&P 500. New York: Standard & Poor’s. surve ay re ed c . onst Brigr htS uct ce od p ea s t and he Inv suem stme of nt all p Comp articaipa ny nt Ins btit ala ute nc 2021 es in t re he po p rts la n. an average of 28 investment options in 2018, and an 40s 44.7% 20.4% 5.0% 6.0% 2.9% 6.6% 10.6% 2.2% 1.5% 74.2% twenties. Exposure to Equities Changed Little Among Consistent 401(k) Participants Between 2010 and 2018 ........................ 7 • Contributions to or withdrawals from the account in a different proportion than the existing mix of assets. participants were more likely to hold some target date fund investments, compared with older participants: 77.2 Key findings: 21.8 21.3 average of 21 investment options when a target date fund suite is counted as a single investment option. 50s 44.4% 15.2% 5.7% 7.0% 3.9% 9.1% 10.7% 2.7% 1.3% 67.3% • Changes to the assets held inside of the account (including changes in the underlying asset allocation of funds, Ev Sab id ee lha C nc ha us enge o , f Re John, s in C allMic oc onsi aha tio st ee n l B nt Ac o 40 g tiv d1( a ity n, k) to aPnd a or rtD ic Fa ipa rom nie nt l Sc Eq s’ A hr ui lloc tie ass a s. t A ions 20 m08 on t. o g EE Con qquit uity s ie is asnd te ................................ nt B 4 ond 01 (k Ow ) Pa nert rs ic hip ipaint n Am s ................................ erica, 2008. ...... 7 percIn ent v es of tmen consist t Op ent ti 40 o1( ns k ) participants in their twenties had target date funds in their 401(k) accounts at year-end 16.0 16.3 Figure 7 60s 38.9% 14.9% 5.9% 8.7% 6.4% 12.4% 9.1% 2.4% 1.2% 57.9% 14.6 16 13.7 12.0 Lifestyle funds maintain a predetermined risk level and generally use words such as “conservative,” “moderate,” or Consistent 401(k) p 5 articipants’ exposure to equities was relatively unchanged between year-end 2010 Movement su c in t h a he s t c aon rge cte nt dartaet ifun on of ds)e. quities in 401(k) participants’ accounts results from changes in stock v1 a1 lue .3 s, in Washington, DC: Investment Company Institute (December). Available at www.ici.org/pdf/rpt_08_equity_owners.pdf. 201 C8 h, ac no gm es p a in re Z de w ro it h Al53 loc .0 a ti po en rc to ent T a of rgce onsi t Da st te ent F u 40 nd 1s ( kA )m po an rtg ic C ipa on nt ss in t isten he t 4 ir0 1 si(k xt) ie Pa s. N rtie cv ip ea rtn he tsle B ss e, tw the ee n la 2 rg 0e 1st 0 a ne nd t 2018 All consistent sample 41.8% 16.6% 5.6% 7.3% 5.0% 9.9% 10.0% 2.4% 1.3% 65.1% Evidence of Reallocation Activity to or from Equities Among Consistent 401(k) Participants ................................. 8 8.5 7.8 15 “aggressive” in their name to indicate the fund’s risk level. Lifestyle funds generally are included in the non-target date In the EBRI/ICI 401(k) database, investment6 op .0 tions are grouped into eight broad categories. Equity funds and year-end 2018. At year-end 2010, 93.3 percent of consistent 401(k) plan participants held some equities (equity addition to reallocation activity by participants. A 4.9 lthough information on specific trading activity of 401(k) participants is movement toward Pe tarrc ge etn d taa gte e o fun f co dn us sis et e ov nte 4 r0 t1 he (k ) pp ea rrt iod ici p oa cn ctur s rbeyd a a gm e,ong yea r-e consi nd st 20 e1 nt 0 a 4n 0d 1( yk e)a p r-e arn td ic ipa 201 nt 8s in their forties, 4.2 Year-End 2018 3.5 2.6 2.8 2.1 1.4 B ba ela tEw nc xpo ee ed n ye su fu re nd a tro -cea Ta nd tergg 20 oery t10 .D aatnd e Fu ye nds ar-e Hnd as 20 Inc 18 re, ast sed oc kA m ma ong rke tC s g ons ene iste ra nlly t 40 ap 1( pk re ) cP ia atre tic d ipa mor ntes tB ha etn wb eond en 2010 mar kaend ts ( 20 Fig 18 ur ........ e 2). 9 20s 30s 8 40s 0 5. 05 s 60s All consist of pooled investments primarily invested in stocks, including equity mutual funds, bank c0 olle .01ctive trusts, funds, target date funds, non-target date balanced funds, or company stock). This was little changed at year-end 2018, not available in the EBRI/ICI 401(k) database, it is possible to observe activity away from or to zero or 100 percent fifties, and sixties. Net movement tow Bala arnc d e ta d rg Fu et nd ds ate funds was lowest among those in their twenties, although their All else equal, this would have tended to increase the proportion of 401(k) pla 2, n a 3 ssets invested in equities. However, Notes 401(k) Plan Participant Age 17 life insurance separate account Targe s, a t nd other pooled investments. Si 11 milarly, bond funds are any pooled account with 93.5 percent of consistent 401(k) plan participants holding equities. GMove ICs m ae nd nt toward holding some equities was equity C ha hold nge ings a s in C t onsi years-te end. nt 40 Am 1(ong k) P c aon rtic siipa stent nts’ 40 Alloc 1(ka ) tp ions artic tipa o Ta ntrs b gete tD w ae te en ye Funds ar- e ................................ nd 2010 and year-end ...................... 2018, few 9 alloc GICs ation to ta are insura rgnc et ed a co te mp fun any ds w proads t uche ts tha highe t gu st a ra ac nte ross e a t he spe a cg ific e g ra roup te os f .re turn on the invested capital over the life of the -2.0 allocation to equities was essentD iaally te constant over the period (65.1 percent at year-eC nom d 20 pa 10 ny and 65.4 percent a M t eym ea o: r - Equity Non-Target Date Bond Money Other Stable pr-im 4.2 arily invested in bonds. B Mao la vnc ed e d A w fun ayd F s a ror m e poole Red m a ac in coun ed a ts in t v M est ov ee dd in b to Z ot eh st ro b oy c ks and bonds. They are highest among participants in their twenties: 92.4 percent- 4 he .4ld equities at year-end 2010 and -494 .4.2 percent held moved toward, or away from, these extremes of equity holdings. For example, analyzing the group of consistent 401(k) contract. 1, 2 2 4 Evidence of Reallocation Activity to or from Target Date Funds Among Consistent 401(k) Participants.................. 9 Age Group Consistent 4 Funds 01(k) Pl Funds an ParticB ip aa la nnc ts e H d oFu ldind ng s TFunds arget DFunds ate Fund Vs alue Funds Stock Other Unknown Equities 1 end 2018). While it is not possible to directly observe the impact of each of these factors inside the EBRI/ICI 401(k) Age Zero in 2010 Zero by 2018 Zero 2018 Net Change Zero in 2018 A t ye ca la rss -eifi nd ed 20 int 10 o , t17 wo .9su pb er cc ae te nt g or of ie cs: t onsi as rtgeent t d40 at1( e fun k) p da s a rtic nd ipa non nts ha -tard g e the t dir a te ent bir ae la nc ace count d fun b da s. A lanc te a rinv gete st da etd e in t funa dr get e q Th uit eie Emp s atloy ye ea er - Be end nefit 20R 18 es.e arch Institute (EBRI) is a nonprofit, nonpartisan, public policy research organization that does not participants at year-end 2018, the data show that 0.2 percent, on net, moved away from a zero -e 1q 1uit .0 ies allocation — 18 Other stable value funds include synthetic GICs, which consist of a portfolio of fixed-income securities “wrapped” with a 20s 19.9% 55.6% 3.0% 2.8% 1.4% 2.2% 6.2% 7.1% 1.8% 77.9% d Re 20s atfe ab re anc se, e sit ................................ is poss2 ible 6.4 % to observe................................ whet -1 he 1r .3 p % articipants e ................................ nt1 e5 re .1 d% or exited an a ................................ ss 7.7 e% t class entirely -3 .ov 6% e........................... r the per2 io2d .8 % 11 datet y fun picdas, llysl right ebaly la nc highe es itrs p tha or n th tfolio to b e share e caom t ye e ale r-ses foc nd 20 us1e8 (1 d on g 6.9 p row ertch a ent nd ), b m ut or m e o foc veus me ed nt on s to inc orom aw ea a ys it from ap p su roa ch a che ful s l lobby or take positions7 o 7.n 2% legislative proposals. 6.7 percent of this group had no equities at year-end 2010 and 6.5 percent had no equities at year-end 2018 (Figure 73.6% g 30s uarantee (typically by a3 n 5ins .6% uranc 37e .8 c % ompany o3 r .a 0% bank) to 4 p.ro 1% vide 1b .e 2% nefit pay3 me .1% nts accord 7ing .8% to the 5. 7p % lan at 1 .b 8o % ok value 78.7 . % 30s 37.5% -11.0% 26.5% 7.0% -4.0% 33.5% C ons2011 istent 401(k 2012 ) participan 2013 ts — espec2014 ially those i2015 n the older 2016 age cohorts 2017 — increased 2018 their exp Com op su ou re n to d analyzed. To gain insight into participant behavior, changes in allocation to equities overall — and to target date funds, alloca and tion va pass re ies t d he by t paarrgte ictipa dant te aog f th e 6 (e Fi 6. 5 g fun % urd e , 6) w. hic Young h is usu er caonsi lly inc stelude nt 40 d 1( in t k)he p afun rticd ipa ’s na nts mm e. ov Neon d - atw arag ye fr t om dat ea b10 ala 0 p nce erdc ent N 5)ot . e Thi s ................................ s net change reflects 3. ................................ 0 percent moving from ................................ zero equities to at ................................ least some, 2.8 percent ................................ moving from some t.. o 12 2 62.5% The Investment Company Institute (ICI) is the leading association representing regulated funds globally, including mutual 40s 43.6% 25.8% 3.8% 5.4% 1.6% 4.6% 7.9% 5.4% 1.9% 74.0% Average 40s 48.4% -12.5% 35.9% 6.2% -6.3% 42.1% 19 57.9% 16 in tar pg aet d rticula ate fu r — a nrd e se betwee xaminedn . For yea tr he -en md ost 2 0 p1 a0 rt a , tn he dr y e ea we rr-e en re dla 2 tiv 0e 1ly 8 .sm Ata y ll c eaha r-e nge nd s in c 2010, onsi 49.9 p stent er 40 cent 1( k of ) p cla onsi n stent 56.4% alloc Sofun a me tion, dre s inc con ord lude ne kee t, pa w ess rs hil e se tup a old lloc ply eing a r tc io onsi dn o atast r w e hy nt ere b r4 id un 01fun a (b kle )d p s, in to ar p tic ro a ipa d vid dnt it eion to life s e comp dge led te tst ow ay sle sa er t fun da a llo d10 c s. a0 p tion Ce om d rc ee ta pnt ail ny o an lloc st coc earta tk ion to ta in is p eo qo uit lery d g e in t at s sd e he a t tc ela sses 54.1% zero, and 3.7 percent sticking with zero holdings in both 2010 and 2018. While the youngest 401(k) participants were 53.0% 51.6% Annual fu 50s nds, exchange-traded fu 42nd .4% s (ETFs 21.7 ), % closed-end 4. 5fu %nds, and7 un .1% it inv 2e .6 s% tment trus 7.4 ts % (UITs) in 7.the 4 69 % .9 % Unit4 e.d 8 % State2 s, .0 a % nd simi 65 la .3 r % 50s 53.8% -14.0% 39.8% 6.1% -7.9% 45.9% 46.5% 401(k) participants held at least some target date fund inve4 st 6m .2% ents in their 401(k) accounts, and that share increased participants' exposure to equities between year-end 2010 and year-end 2018, and moderate increases in their exposure for one or more of their clients. The final EBRI/ICI 401(k) database includes only plans for which at least 90 percent of all plan fund40 s, on 1(k) ne ptla . n’ For s sponsor example (, the 60 .7 em pp eloy rceent r) . of Mone consi y sfun tent d s c 40onsi 1(k)st p a of rtt ic hose ipantfun s in ds d thee irsi tg w ne ent d ie tos ha mad int 10 ain a 0 pe st rcaebnt le of sha the re ir Growth more likely to move to holding some equities than older 401(k) participants, the oldest group of 401(k) participants fu 60s nds offered to investors 36 in .4% jurisd 2ic 1.tions 2% worldw 4id .7e % . ICI seek 8s .9 to % enc 3.o 2ura % ge ad1 he 2.re 3% nce to hig 6.h 3% ethica4 l .s 7ta %ndard 2.3 s, % promo 54 te .8 % 60s 53.5% -12.8% 40.7% 6.3% -6.5% 47.0% 17 18 to 56.4 percent at year-end 2018. All age groups increased their exposure to target date funds. However, the largest t Figur as o ste atrsg c ee o t uld s d a tb ee fun ided ntifie s. d. Rate, 2010 – 40 1(p kr)ic pela . n Sta ac bcle ount value 5inv p erst oe dd uc in t ts, a su rgce h a t ds atg eua fun rad nt s a eetd y inv eare-st end me20 nt 10 con , c trom actps ( arG ed IC w s)ith a 46 nd .1ot phe erc r est nt a b ale t yveaalue r-e nd fun20 ds, 18 . At displayed slight reallocation activity toward a zero equities allocation. Some of the activity of older participants could All consistent sample 40.6% 23.5% 4.3% 7.0% 2.4% 7.8% 7.3% 4.9% 2.1% 65.4% public understanding, and otherwise advance the interests of funds, their shareholders, directors, and advisers. ICI carries out All 50.1% -12.8% 37.3% 6.3% -6.5% 43.6% 2018 net movement toward target date fund use over the period occurred among consistent 401(k) participants in their the ot are he rre e pnd orte of d ta he s one age csp ate ec gto rum ry. , The cons ot ishe ternt c a 40 te1( gor k)y p is a rtthe icipa rent sid s in t ual for heir ot si he xtrie inv s m eov stm ed e nt tow s, a su rd c h a a 10 s r 0 p eal e ercst ea nt te funds. ha Figvur e e b e 1, en in Averaant ge ic ipa Asste ion o t Alloc f ra ettion o ireme f nt 40 r1( atk he ) P r la tha n Ac n in coun resp ts b onse y Pt ao rtfin icipa anc ntia A l ma ge ................................ rket movements. Inde........................... ed, household 4 its international work through ICI Global, with offices in Washington, DC, London, Brussels, and Hong Kong. 19 for 1ties, fifties, and sixties. Participants in their twenties had the highest use of target date funds in both time periods 1 9 concThe entra fin tion in al cate ta gror ge yt, d unk atenow funn d, s, on consine sts of t: 15fun .1 p de s t rcha ent t cof ould consi not st e bnt e ide 40nt 1(ifi k)e d p.art icipants in their sixties had 100 sur v Ae lly i ninf deor xem s a atre ion ind set to ic a 1t 0e 0s in tha De t c hous embe ehold r 201 s a 0.nt icipate rebalancing their portfolios as they age. A target date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it approaches and passes Note: A target date fund typically rebalances its portfolio to become less focused on growth and more focused on income 3 For the results of the year-end 2018 update of the EBRI/ICI 401(k) database, see Holden, VanDerhei, and Bass 2021a. but 2 experienced the smallest net change. Fi thg e ur targ e e2, t da D teom of te hst e ic fun St d, oc whk ich a nd is us Buond ally i nM cla ur dk ee dt i nI nd thee fu xe nds’ s................................ name. ................................................................. 6 percent of their 401(k) plan account invested in target date funds at year-end 2010, compared with 16.5 percent at asT ih t e a p S&P proac 5h 0e 0s i n ad ne dx p m as es ae ss u re ths e tth ae rg p ee t rf do arm te o afn tc he e o fu f n 5d 0,0 w sh to icch k s is cuh so usae lln y fin oc r lm ud a e rk d e in t s th izee f,u lin qd u’is d in ty a,m ae n.d F in ud nu ds st ry in cg lu ro du ep m utual 2 Not all participants are offered this investment option. Fe 4 w consistent 401(k) participants had their entire 401(k) balances invested in equities, and net movement away from year-end 2018. fu re np dre s,s b ea nn ta k tc ioo nll.e ctive trusts, life insurance separate accounts, and any pooled investment product primarily invested in the Because of these c2 ha 0snges in the c3 ro 0s ss sections, c4 o0 mp s aring avera5 g 0es account bala 6nc 0ses across diffe Alre l nt year-end cross- 3 Most consistent 401(k) participants who were fully invested in target date funds at year-end 2010 Figure 3, Most Consistent 401(k) Participants Hold Equities in Both 2010 and 2018 .................................................... 7 G 3ICs are guaranteed investment contracts. tR ha etfe fulrl e con nc ce ent s ration occurred between year-end 2010 and year-end 2018. To be 100 percent invested in equities, the security indicated. The consistent sample is 1.9 million 401(k) plan participants with account balances at the end of each sectional snapshots can lead to false conclusions. For example, newly formed plans would tend to pull down the average The Russell 2000 index measures the performance of the 2,000 smallest US companies (based on total market 4 r emained fully invested in target date fu 40n 1d (ks ) a Plt y an ea Par rt-ien cipa dn 2 t A 0g 1e8. Among consistent 401(k) plan participants who 10 Equities include equity funds, company stock, the equity portion of target date funds, and the equity portion of non-target date balanced funds. Ev ye id ar enc froe m o 2 f Re 010a tll hoc rou ag tio h 2 n 0Ac 18tiv . Aity ge to gro or upF is rom bas T ea drge on t Da the t pe a F rtiun cip ds an Am t's aon geg at Con yeas r-e iste nd nt 20 41 08 1.(k) Participants 401(k) investor would have allocated their full 401(k) balance to equity funds and/or company stock. Analyzing the capitalization) included in the Russell 3000 index (which tracks the 3,000 largest US companies). B ac loom counb t ebra gla D nc ae ta b . ut New wo uld Yor k te : llB us loom nothing berg L a.P bo.ut consistently participating workers. Similarly, the aggregate average account Fi 5 gure 4, Changes in 100 Percent Allocation to Equities Among Consistent 401(k) Participants Between 2010 and were fully invested in target date funds at year-end 2010, nearly 75 percent remained fully invested in target date Move A So ssu erc tm ae le lo :nt ca T a tin t io bn u lb he a yt ia osh gn es a g r f ro ro eu m of p i sEB t a am rR g oe In /t Ig C d tIh a Pa et e co rtfun nic siip sd ta es in 401 n nt t -D saim re pc le (tk e o) d f 1 p R .a 9e rm ttiic re illipa im one nt 4n 0ts’ 1 Pl (k) aa c pn c la oun D n a pt ata rt s r iC cie p osu a lln etlt c sts fr w ioin tho Pro a m cco c je u ha c nttnge balas in t nces a he t th v e a elue nd o of f eatch he yir e ar g roup of consistent 401(k) participants at year-end 2018, the data show that 2.7 percent, on net, moved away from a 4 balance would tend to be pulled down if a large number of participants retire and roll over their account balances. Note: Equities include equity funds, company stock, the equity portion of target date funds, and the equity The Bloomberg Barclays US Aggregate Bond Index is composed of securities covering government and corporate 2018 ........................................................................................................................................................ 8 from 2010 through 2018. funds at year-end 2018. This high level of persistence in target date fund investing was observed across all participant B tarright getSc da op tee fun and d a Inv sse etst s m re ela nt t iv Ce om to ptahe ny ot Ins hetr it ut inv ee . st 20 m 2e 1n . tTh s in th e Bre ig 40 htSc 1(op k) e a/I cc Coun I De t, fin we hic d h Cont dep ribut ends ion P on la the n P re rofile lativ: e A Close 100 percent equities allocation — 9.2 percent of this group at year-end 2010 and 6.5 percent at year-end 2018 were portion of non–target date balanced funds. A target date fund typically rebalances its portfolio to become bonds, mortgage-backed securities, and asset-backed securities (rebalanced monthly by market capitalization). The 5 Note: Funds include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in For a more detailed description of the 2010–2018 longitudinal sample, see Holden, VanDerhei, and Bass 2020. a Ag na e ly gzin roup g s. the group of consistent 401(k) participants at year-end 2018, the data show slight movement away from a performance of stocks versus fixed-income securities, in addition to reallocation activity by participants. Although Look at 401( les ks ) P fola cu ns s, ed 20 o1 n8 g. ro Sa wn D th aie ndg m o,o C re A : foB cr uight sedSc onop ine c,o m and e aW s ia t sh apingt proa on, cheD s C a: nd Inv pa esst se m se tnt he C ta org me pta dny ate I ns of t th ite u te. Available 100 percent invested in equities (Figure 4). This net change reflects 5.2 percent moving away from the 100 percent index's total return consists of price appreciation/depreciation plus income as a percentage of the original investment. the security indicated. Age group is based on the participant's age at year-end 2018. Percentages are dollar-weighted averages. Figure 5, Changes in Zero Allocation to Equities Among Consistent 401(k) Participants Between 2010 and 2018........... 9 100 percent target date fund allocation — 17.9 percent of this group at year-end 2010 and 16.9 percent at year-end 6 fund, which is usually included in the fund’s name. Funds include mutual funds, bank collective trusts, life inf a t or ww mw at.ic ion o i.org n sp /file es/ cifi 20 c 21 tra /2 d1 ing _pp ar c_dc tivitp yla of n_pr 401( ofile k) _4 pa01 rtic k.p ipa dnt f. s is not available in the EBRI/ICI 401(k) database, it is This number is lower than it would have been if it merely reflected employee turnover and retirement. For example, if 401(k) alloc Soa ut rc ion to som es: Bloome bte hin rg,g Ba less rc, la2 y. s5 G ple or bc ael nt In vm es ov tm ing enttso , a F ra 10 n0 p k Re urscsee nt ll C ao lloc mp aa tion, ny, aa nnd d St 4.0 an d pa erd rc e & nt Po st oic r'k sing with 100 percent Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project insurance separate accounts, and any pooled investment product primarily invested in the security 2018 were 100 p EBRI Is erce snt ue Bri inv ee f is s re ted gi st in t erea d r in g e thte d Ua .S t.e P fun atend t as ( nd Fi Trg aur dem e a6 rk) . OH ffiow ce. e ISv Se N r:, 0e 8v 8e 7 – n th 137X oug /90 h th 0887e –1 re 37 w X/a 9s ne 0 $ .5a 0+ rly .50 no net p pla oss n ible spons to ors ob c ser hav ng e ea c the tivir ity s eint rvic o eor p ro out vid of ersze , a ro ll p or a rtici 100 p pants erc in ent tho inv see s ptla m ns en w t o in t ulda r bg ee e t xc da lud tee fun d fro ds a m the t ye c ao rns -end. iste nt sample. Fi alloc guraet ion to e 6, Change quit s in 100 ies in bot Ph erc 20 ent 10 A allo nd ca20 tion to Ta 18. In or the ger t D wa or te d s, Fu43 nds pe Arm ce ong nt of Cons consi istst en etn t4 01 40( 1( k)k )P a pratric tic ipa ipa ntnt s B s w etit wh th een e2010 ir indicated. The consistent sample is 1.9 million 401(k) plan participants with account balances at the end © 2021, Employee Benefit Research Institute –Education and Research Fund. All rights reserved. c Hha old nge en, , Sa som rae h, p D aa rtnie icipa l Sc nthr s d ass id , ra end alloc Ele atna e t he Bair ron ass e e Cthis s: m 4.6 . 20 pe2r1a ce. nt“ D of efin consi ed st Cont entr ibut 401( ion P k) pa larn P ticipa artnt ics m ipant ov s’ ed A catw iva ity ie fr s, om 401(k) ac ac nd oun 20 ts ful 18 ................................ ly invested in equities a ................................ t year-end 2010 we................................ re fully invested in equit ................................ ies at year-end 2018 ................ . 10 7 For discuss oion f ea o cf h ho yew ar US from ho 2 u0 s1 e0 ho th ld ro s’ uinv gh e 2s 0tme 18. nt Ag se c g ha rong upe i s o v be ar sthe ed o linfe th c ey c ple art , is ce ip ea S na t's b e alha ge us at, y Bog ear-e da nn, d 2 a0 nd 18 S . chrass 2008. 20 20.” ICI Research Report (February). Available at www.ici.org/pdf/20_rpt_recsurveyq4.pdf. the 100 percent allocation to something less, 3.6 percent moved to a 100 percent allocation, and 13.3 percent stuck Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project e e e e e e e e e e e eb b b b b b b b b b b br r r r r r r r r r r ri. i. i. i. i. i. i. i. i. i. i. i.o o o o o o o o o o o or r r r r r r r r r r rg g g g g g g g g g g g IIIIIIIIIIIIs s s s s s s s s s s ss s s s s s s s s s s su u u u u u u u u u u ue e e e e e e e e e e e B B B B B B B B B B B Br r r r r r r r r r r rief ief ief ief ief ief ief ief ief ief ief ief A re • • • • • • • • • • • • s e O O O O O O O O O O O Oa c c c c c c c c c c c crttttttttttttc o o o o o o o o o o o oh b b b b b b b b b b b b e e e e e e e e e e e e re r r r r r r r r r r r r p 14 14 14 14 14 14 14 14 14 14 14 14 or,,,,,,,,,,,,t 2 2 2 2 2 2 2 2 2 2 2 2 fr0 0 0 0 0 0 0 0 0 0 0 0 o2 2 2 2 2 2 2 2 2 2 2 2 m 1 1 1 1 1 1 1 1 1 1 1 1 th • • • • • • • • • • • • e N N N N N N N N N N N N E o o o o o o o o o o o o............B 5 5 5 5 5 5 5 5 5 5 5 5 R 41 41 41 41 41 41 41 41 41 41 41 41 I E ducation and R esearch Fund © 2021 Employee Benefit Research Institute 10 12 11 13 8 5 3 2 7 6 9 4

Volume 541

Pages 13

EBRI Issue Brief

Oct 14, 2021

Sarah Holden

Jack VanDerhei

Steven Bass

Retirement