What Does Consistent Participation in 401(k) Plans Generate? Changes in 401(k) Plan Account Balances and Asset Allocations, 2019

Key Findings:

Policymakers, plan sponsors, and individual retirement savers are interested in understanding the wealth-building power of 401(k) plans, a key component of the US retirement system. Because the annual cross sections cover participants with a wide range of participation experience in 401(k) plans, meaningful analysis of the potential for 401(k) participants to accumulate retirement assets must examine the 401(k) plan accounts of participants who maintained accounts over all of the years being studied (consistent participants). For example, because of changing samples of providers, plans, and participants, changes in account balances for the entire database are not a reliable measure of how individual participants have fared. A consistent sample is necessary to accurately gauge changes, such as growth in account balances or changes in asset allocations, experienced by individual 401(k) plan participants over time. This paper provides an update of a longitudinal analysis of 401(k) plan participants drawn from the EBRI/ICI 401(k) database.

A few key insights emerge from looking at the 2.7 million consistent participants in the EBRI/ICI 401(k) database over the four-year period from year-end 2019 to year-end 2023.

The average 401(k) plan account balance for consistent participants rose each year from year-end 2019 through year-end 2023—with the exception of 2022, a year of stock and bond market declines. Overall, the average account balance increased at a compound annual average growth rate of 15.8 percent from 2019 to 2023, rising from $82,274 to $148,092 at year-end 2023. The median 401(k) plan account balance for consistent participants followed a similar pattern and increased at a compound annual average growth rate of 25.9 percent over the period, to $58,898 at year-end 2023.
Younger 401(k) participants or those with smaller year-end 2019 balances experienced higher percent growth in account balances compared with older participants or those with larger year-end 2019 balances. Three primary factors affect account balances: contributions, investment returns, and withdrawal and loan activity. The percent change in average 401(k) plan account balance of participants in their twenties was heavily influenced by the relative size of their contributions to their account balances and increased at a compound average growth rate of 56.1 percent per year between year-end 2019 and year-end 2023.
401(k) participants tend to concentrate their accounts in equity securities. On average, at year-end 2023, more than 70 percent of consistent 401(k) participants’ assets were invested in equities—through equity funds, the equity portion of target date funds, the equity portion of non–target date balanced funds, or company stock. Younger 401(k) participants tend to have higher concentrations in equities than older 401(k) participants.
Consistent 401(k) participants’ exposure to equities was relatively unchanged between year-end 2019 and year-end 2023. At year-end 2019, 96.4 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 2023, with 96.0 percent of consistent 401(k) plan participants holding equities.
Consistent 401(k) participants’ exposure to target date funds was relatively unchanged between year-end 2019 and year-end 2023. At year-end 2019, 66.4 percent of consistent 401(k) participants held at least some target date fund investments in their 401(k) accounts, and that share was 65.3 percent at year-end 2023. Participants in their twenties had the highest use of target date funds in both periods.
Most consistent 401(k) participants who were fully invested in target date funds at year-end 2019 remained fully invested in target date funds at year-end 2023. Among consistent 401(k) plan participants who were fully invested in target date funds at year-end 2019, more than 90 percent were fully invested in target date funds at year-end 2023. This high level of persistence in target date fund investing was observed across all participant age groups.

Figure 5 F Fiig gu ur re e 4 8 Figure 2 Younger Participants Tend to Have Larger Shares Allocated to Equities Changes in 4 C0 h1 a(n kg ) P es la in n Ac Allc oo cu an tito B na tlo a T nc ae rs g Am et Da on te g F Co un n d ss istent 401(k) F R • O E In Fig ew ef v ver ves ild ec S ur c en t tio m th m in n e is ic en s leq g ar s e ip s t tter lu h o y, en C iei t f io o it b es r R m d o 4 h ,ea p n 0 ( itg an d eq 1 hh l ( e l fk) er y u oca uc in In to p av y dn ar s st fser t u iiiar ts on tn iag u c td e en itp e. s e an A an ,t ag t c 2 p y ar tt 0 ar s ie p 2 g v h to 5 et an iiad c o t . iy lp “T d d ed an t at th th o en e ei ac e tsor rfu ’U c ur en ag o S n e, u fr d R t g n s iom tet r rth ,e eg p e n i r4 ro e at ic 0 E m n m o1 e – q n ar en (tu al s k) ar iiils t ly t o g tb iM en c et ies al n at ar v tan d i est k o g A at et n c rm o es e ed ,tu o on F b p iial n eq i rn al s ves g an tu b s Con Q o io c tt in ed u ed e hd ar s ad s s ftii.n n u er i av s c ne r t d 2 ease q en er s0 u ,ag 2 it o t5 i r es, d e ” 4 c0 ( m an o J1 an m u od (k n d p d e) est m an ) s.ed l P y ilA g y, a ivail s h an tr f to r t n o c iab ac c k) m et ic lp . e m o 6 a T u 7 at o h nt n .ve 1 i s t s p b m w er al a en an s c en tl icttes ttol e o f Changes in Consistent Co 4 n0 s1 is (t k) en P t a 4r0 t1 ic(ip k)an Pa ts rt ’ iA ci llp oa cn at ts ions Acc tu om Tu ar la gte et Date Funds Sarah Holden is Senior Director of Retirement and Investor Research at the In1vestmen 2t Company Institute (ICI). What Does Consistent Participation in 401(k) Plans Percentage of 401(k) plan account balances allocated to equities by age, 2023 12 Lea Ac t y h-ea Blirley -enA d c2 t.0 A 2t3 n , 60 o t ipe me rch en as t an of A y no m nn o– n o tpu ar nb g g let i Co c dat pere n sob s nal al iP s an a in tce r fe otd f n rima c tu 4 in tp id a o 0 a n1 t n sset ( htk at s) s i P s wper ea re rso t ass inc al uilmed p y a iden n to tts b ifie abiln eves , su ted ch as in equ a So itc ies ial Se (sece urity R 4 t th h 0at at e 1( fe k) f w uer r llp e e c lc w an o nc hm w n an w c as ue en g c .is h ed s cet t i r.hat o siat g r iat g h o / year er n ry esear o ear tc h -can en u -en rc d rh ted h d /2 e s0 2 tb at 2 0 aet 3 ver 1s,9 w / r w ag een t et o it ih e r7em 2 an 9 year .4 6en d . 0 p - m ter p en . ed er cd en ci an en 2t0 at t1 ac 9 o ye fc a o cn ar u od n n - ts en year ib sd t al en an - 2en t 0 c 2 4d es 3 0 1 2 (o ( 0 Fk) fi2 gt3 u h p .r e le T an b o A4 r o b p) ad e ar . 1 tO er i0 cver 0 i p E an p B er tR h tI/ s c e en IC h so a I tlm d i4 n ie 0 n ve 1 g ti (s m eq k) ted e u dp i at tier in es. a ieq b o as d u , e it t h ies, eir the Steven Bass is an economist at ICI. S Cr ig ai n gi f Cioc pa eln antd A isc tc he oDi urn ec t to B r a olf a We nc ale ths Benefits Research at the Employee Between year-end 2019 and year-end 2023, consistent 401(k) participants’ use of target date funds decreased slightly, Movement in the concentration of equities in 401(k) participants’ accounts results from changes in stock values and Generate? Changes in 401(k) Plan Account Balances and F igure 1, Distribution of 401(k) Account Balances by Size of Account Balance ...................................................... 6 • Balanced f8 u9n .d 7% s are pooled accounts invested in both stocks and bonds. They are classified into two subcategories: n In uves mbe tmen r, bee t Cno t mpa ran Pe s n rce fer y Irn n ed s ta t t ig to u e t o e, o rf Qua sh co 8 a8 n rr .ed si 3 ter % stw ly ein tS h tu E 4 ppl 0 B1 R emen (k) I. ptaart ry iciD F pa a itg n a) u ts . Th rb ey e3 a a glle o,c a ye tio an r-e to n e dqu 20 it1 ies 9 i an n d ta ye rge atr-e dat ne d fu 20 n2 ds 3 varies with the ( 4 al F 0 lio 1 gc ( uat k) rei o in 2 nves ) .t o At tto ar year r g wet o- u en dld at d h e 2 av f0 ue 2 n3 d al ,s lt oh al ce at s o av ed in er ctag rheased, eier 4 fu 0l1 l ( f4 r k) 0 o1 m p ( k) lan 37 b .ac 5 al a p cn o er c uc e n en tt o b t al eq oan f u ag icte y g ro feg u f ntat d hs e e an c 4o 0d n 1/ s(o ik) srt en cp olm tan g p ran as ous yp et sw s to as tcok. $ 4 1 An 04 .4 8 al ,p 0 yz er 9i2 n c, en gn te th ,ar e oln y with B m en or ef e itp R arets ic ear ipan cht sIn m st oit vin ute g (oEuB t R oI) f .t h Tan han in ktso ttoh ese Ada m fu n Bd en s,s o im n h no et n., At EB R year I Di-ren ecd to 2 r,0 1 Dat 9, a 6 6 C.o 4m pp er lian cen ce t o an f c do IT ns ian sten d tK yle Brady, Peter, and Steven Bass. 2021. “Who Participates in Retirement Plans, 2018.” ICI Research Perspective 27, no. 8 from reallocation activity by participants. Although information on specific trading activity of 401(k) participants is not Percent change in average 401(k) plan accoun 8t2 b .3a % lance among consistent 401(k) participants by age and tenure As Morn t •s ar i ng ge s et C tt Al ar o d n .at s 2is e 02 t floc u e 3n n . d M ts 4 o atio an r0 n1 id n ( g k ns o )t n ar p ns –ar tLi ar tf, 20 ic g ec et ip yc d a le at nt Al 19 es l’b o e al cx at – an p i20 o o cn ed s u In r23 fe d ue n tx d o e s s .t .ar Ch ge ictag do at : e M o fu rn nin dg ss w tar a,s In re cla . Avail tiveab ly lu e n at c hanged between funds’ target dates. For target date funds, investors were assumed to be in a fund whose target date was nearest to their t g aver w ro icue ag p to h efe . caver onsiag sten e t ac 4c0o1u(n k) t b pal aran ticc ip e an oft s$,7 t9 h,e 22 0 0 d0 at a a m so hn og w ptar hat tic 0 ip.an 7 p ts er ic nen th te , o en n tn iret e ,E m BR oI/ veId CI to 4 0 a1 1 (k) 00 dpat erab cen aste. eq Tu hie ti es m edian 27 Bedu, ResearcAc h As c sc oco iat ue, n tE B B Ra I,l a fon r tc he eis r pT roe cess ndi ntgo o fI n th c e rd eat aa. s e T hw is iIs th su e Ag Brie ef a wn as d w T rie tten nu w rie th assistance from 401(k) par (Step icitp em anb tser h)el . Avail d at lab east le at so m ww e w tar .ic gi.et o rd gat /fie les/ fu2 n0 d2 i1 n/ vp est er2 m 7en -0t8s. p in d ft.h eir 401(k) accounts, and that share decreased Average avail Acc ab ou le n ti ba n th lan e c Ees BR aI/ re ICI ne 4 t 0 o1 f u (k) npai dat d l ab oan as ba e, lan it cies s p . T oshsu ib s,le un to p ai ob d sler oan ve b ac ala tin vit ce y s a aw re ay noftr i on m c lu oded r to i 1 n0 a 0n y p o erfc ten het e oir gh zter ass o eq et uity Figure 2, Consistent 401(k) Participants Accumulate Significant Account Balances ................................................ 7 Compound Annual Augu C st hang 28, 2 e0 s2 in 5 •C No ons . i6 s41 tent 401(k) Participants’ Account Balances ye httar ps: -/ e/n ind d ex 20 es. 19 m a on rn di nye gsar tar -.e cn om d /2 ap 02 i/3 do . c At s/ 6 y4 ear 02-4 en ba7 d 2 b0 71 e0 95 , 5 61 60 .4 8 0 pfer 68 c9 en 50 t . o f consistent 401 $( 1k) 48 ,p 7 0ar 2 9.2 4 ti% cipants held 65th birthday. Allocation to equities in target date funds is assumed to 7v 2ar .0y %with investor age. The equity portion was 4 al0 lo 1c (at k)i o pn lan — 4ac .4c p oer uncten bal t o an f c th e is a m A gr v o o e n u ra g p g tat h e e 4 year c 0o 1n (k) - sen isp td en la 2 n t0 p a 1ar cco 9 tan ic uid p n an t5 b .t1 a s l p a w er nas ce c en $ f5 o t8 r at ,co 8 9 yn 8 ear si at st - en e year nd t 4 2 -0 en 01 2(k) d 3 2 w0 er 23 e , 1n0ear 0 ply er fco en urt tiin m ves es tted he in to 65 th .3 e p In er sc tien tutt e’ at s year resear -en ch d an 20d 2 3 ed , w ito itrhial th se taf net fs. dAn ecy rease view s o cex cuprrress ing ed ac rin o stsh ip sar rep tico ipran t ar tse in th al osl e ag oe f tg hre ou au ps th (o Fri gan urd e s 6h )o . u In ld By Sarah Holden, ICI; Steven Bass, ICI; and Craig Copeland, EBRI c hat oleg din og ris es atdes year cribe -en d.d . Among consistent 401(k) participants between year-end 2019 and year-end 2023 A, v e freaw g em Go rved owth t o, EBRI/ICI 401(k) Database • A target date fund typical C ly h arn eb ge al san in c 1es 00 ip te s rp ce on rt t fa olllioo c a to ti ob nec too tm are g ele t s ds a tfeo fcu unsd ed s on growth and more at least some target date fund investments in their 401(k) accounts, and that share was 65.3 percent at year- estimated using the industry average equity percentage for the assigned target date fund, which was calculated using the participants by selected age and tenure, year-end BrightScope and Investment Company Institute. 2025. The BrightScope/ICI Defined Contribution Plan Profile: A Close m eq A ed u gie tian i es Gr o ac (u Fc p ig ou u T rn e etn 7 b u) ral . e an T (y he cis a e rn s o)et f $ c 1h 2019–2020 5an ,80 g0 e r fo ef rl ec par tst i2020–2021 1 ci.p 2an per ts cien n tth m e o en 2021–2022 vin tirg e aw EBay RI/fICI rom 2022–2023 4 0 th 1e ( k) 10 d 0at pab erc a2019–2023 en se.t allocation R to at e s,o 2 m 0et 19h –2 in 0g 2 3 not be ascribed to the officers, trustees, or other sponsors of EBRI, Employee Ben 60e .9f% it Research Institute-Education F bio gtu hr e ye3ar , s Ac , C yo co on u usi n nst tg e er Bnal t 4 S an 0 a1 m c(es p k) le T pen artdic tip o an Intcsr eas were e w m ito hr e Ag lik e el an y d to T h en olu dr e so ................................ me target date fund in ................................ vestments compared ..... wit h 8 or away from, these ex 1t 0r0 em pees rc eo nft equ Mio ty veh do a ld wia ny g s fr.o m Remained at 100 Moved to 100 Net 100 percent Pl 28an Spo n s o rf o Co cu usn ed cil o on f A inm co er m ice a.as 2 0 it2 ap 4. p 6r7 otac h h An es n u an ald S F p uas irg ve su es y ro e tfh A Pr e 3 o ta fr itg S et h ar dat ine g o an f td h e 40f1 u( nk) d, Pl wan hicsh : R isef uls ec ual tin ly g 2023 Plan Fig $1 u 2r 0e ,8 A 77 7 Fa T chtior s sy s sI te nfl m ue of c nci lassi ng fic at Chang ion does es nio n t Co conns sidier st te hnt e n P umb arter ic iop f di ant stis n’c tA ic nc ves ou tmen nt B t a olpa tinc ons es pr esented to a given participant, Morningsen tard L i2 fe 0c 2y3 c.l ePar Alltoic ciat pan iont In s in de tx hes ei ( r see twen M to ies rn ih nad gst ar th e 20 h2ig 3h ).e F so t ru a sdd e o itfi otn ar alg det et d ai at l, s e ee fu t nd hs e di in sc bu ossi th o pn er oio n pa ds. ge TK. Changes in Consistent 401(k) Particip F an igu ts re ’ A As4 set Allocations 20s Look at 40A 1ll(k) Plans, 29 06 2 .2 3% . San Diego 6,3 .CA: 6% BrightSco 14 p.e, 7% and Wash6in 1.g 1t% on, DC: In4ve 93s .3 tm %ent Compan 56y .1In %stitute. less, 1.9 percent moving to a 100 percent allocation, and 3.2 percent sticking$ w 11it 3h ,9 1 11 00 percent allocation to equities in Age in 2019 100 percent by 2023 Figupree rc A en5 t percent by 2023 change in 2023 older an pd ar R tiesear cipant cs h: F 75. un4 d p (E er BcR en I-tE R ofF )c,o o nrs itsh ten eirt s4 ta 0f1fs (k) . N p ei ar th tier cip E an BR ts I in no trh E ei BrR tIw -E en RF ti es lo bh bad ies t ar org tet ake ds at p e ofsuitnio dn s si n o n th s ei prec 4i0 fi1 c( k) E x p er inic en luc de ed . Ch ini ctag he of:u Pl nd an ’s n Sam pon e. so r Council of America. Years of tenure but rather, the types of o4 pt0 io1 ns (k pr)e P sen la ted n. Ac Planc So po u nn sotr B Coa un la cin l oc f A eme s Am rica 2o 02 n 4g in Co dicatn es stih s at t i enn 2t0 23, the average number What DoesD Co ome ns stiis c S ten toct k a P nar d B tici ondpatio Marken in t Tota 40 l Re 1( tuk) rn I P ndle an xes s >2 to 5 175.2$ % 101,626 82.7% 25.0% 67.5% 952.8% 80.1% 13 F In ig an ure y 4 g,iAvail ven Chan 20s ye ab gar les e , at itn h w e 4 w 0 c1 h w 6 ( an k) . 8i.cg 9 iPl . % e oan rin g / a fAc i lp es/ car ou 2 tin 0 cit2 p - 5 5 B an ./al 92 % tan 5 ’s- rc ac p ets c - d o Ac um p nlo tan n bg - al p Co an 6 ro 3fc .n 0 ie ls % e22 is ist en a -4 c t0 o 4 1m 0 k.p 1 b(id n k) fat 2 . P .i 0 o ar % nt io cfip tan hree ts- 3 ................................ f .9 ac %tors: 65.0% .. 10 I bo nt thr 2 o 0d 19 uc A an v td e ion r 20 a2g 3 e . In As oth ser e tw Al ordlso , 73 ca p ter io cn en o t off 4 co 0 n1 si( sk ten ) P t 4l0a 1n (k) Ac parc tio cip u an nttss w b ith y P thei arr 4 t0 ic 1(ik) p a ac n ct o Ag unts e fully ac c Fo op u r a o nlt de is c y at sc p r ryear o ipp tio os -n en al o sd f . tE 2 hB 0 e R 2est 3 I ,i n ic m vit oat m es ip o ar nc o o ed m f t m w heen it s hh t 6 a o3 rn e . 0to h f pier s par rce en ts icear itpan oc f h tcs’ .o n 4s 0i1 s( ten k) a t c 4c0 o1 u(n k) ts i pn ar ves tictied pan in ts e iqu n t ith ie ei s, r s see ixt pa ies. ge TK Altho . u Fg orh a 401(k) Plan Contributions, Investment Returns, Benefits Disbursed, and Assets • Most consistent 401(k) participants who were fully invested in target date funds at year-end of investment fun> d 5 o to p t1 io 0ns availabl 72e . fo 7%r participan 54 t c .9o %ntributions 8 w .9 as % 22 among t 57h .2 e % 709 plans 3 su 58 rvey .1%ed. BrightSc 4o 6pe .3% and Factors Influencing Changes in Consistent 401 F(k ig) uP re a r6 ticipants’ Asset Allocations $87,040 30s 58.9% -5.2%401(k) Par 53 t.i7c %ipants 2.9% -2.4% 56.6% >P 2 to er 5 centage of 40 >1 5 to 10 (k) plan account balances among consistent participants iG nves etnera ed in equte ities $? 8 2 at C ,2 7 year 4han -endge 2019s w i ern 40 e fully in1( ve $8sk) 5t,ed 50 0iP n eq la uin A ties at cco year-enunt d 2023Bala . nces and c T des h han e crE g ipt B es R ioI/ fnoICI o r fal t 4 lh 0 g e1 rio ( nk) u ves p s dt at men wab ere ta s o re, el pt at iw oin h vel si,c s h y em ie s o p cd o age est nst,r TK u th c.t eed lar fg ro est m tnhet e ad mo m ve inm isen trat t iaw ve ay recfo ro rd m s t oar f 4 g0 et 1 (dk) at e p lan fun sd , ru ep ser esen overt s th a e large S &P 5 0 0 . $ N 8ew •1 , 1 4 A Y 0 Non o nr nk: u– aS tlar tfan lg oet w dar s dd re at & p eo P b rto al eoan dr ’s o c.n ed F fou rm nds 5 5 in 0c0lu a dn e da ye sset ar-e aln lodc at asse ion to s,r b hybr illioin ds fu on f d ds o,l lia nrs, ad 2 d0 it0 io 0n – 2 to 0 2 li4 festyle $79,000 1 30s 2019 rem Aain ll ed fully 4in 1.v 9% ested in tar 34.g 8e %t date fun 0d .6s % at year-e4 n 5d .1 % 2023. Am1 o7n 9g .1 c % onsistent 40 21 9.(3 k) % plan Investment Company Institute 2025 reports an average of 29 investment options in 2022, and an average of 20 investment Month-e Cl nar d k, lev Je ef lfrey 40s W. 2025. Ho 46w .1 % America Saves -3. 82 % 025. Valley For4g 2e, .3 % PA: The Vang 3u .2ar %d Group-,0 Va .6% nguard 4 5Cen .4%ter for F igur S •e u5 g,n g Y ew eo su t n e co g dn er C tr iiP b tar a ut ttAve iio io cn in ps: an ra b H g y to s e t l d T h 4en en e 0 1 p ,d (k) ar S tar o tip cah Have lia pn an , S att cco e L (ven ar +) u g,n er tB th a b S es a h s e lar a ,m n an e p ce sld oAl yer fC o lo rr ai c co (at g + n ed ) Co si , o st p tr o el e b E n an o q t tu d 4 hi, 0 ;t i1 “ es Wh (k) ................................ at pa Do rtici ep s aCo nts nsbis y tent Par ................ ticipation 11 in $70,320 23 Changes in 401(k) p 29 lan assetC alo lon cat siios nt ar en e t d et 4er 0m 1( in k ed F ) iP b gy a u tr rht e riee A ci2 fp ac atn ort ss : Investing in c prer os io sd s ec octciu or nr,ed or asm nap ons gh c oo t,n o sifs t4en 01t( k) 40 1 p(lan k) sp ar at tt ic hie p an entd s o inf tehac eih r fyear ifties . It an id s a si x ctrio es ss . s ection of the entire population of Asse t Al funloc ds. ations, 2019 –2023 14 >2 to 5 111.2% 62.4% 15.2% 58.0% 524.2% 58.1% 240 >10 to 20 >20 to 30 participants who were fully invested in target date funds at year-end 2019, more than 90 percent were fully opt Siee ons Hw olh den en 50s a , B tass arge , an t dd atC e 3o fu 8pel .7n % d an sd ui2 te 02 is 4.c ou-n 3t .5 ed a % s a single inves 35.t 2men % t option. 3.0% -0.5% 38.2% Year-End 2019 • t Roet tal ir em inve en st tm Ren esear t ret ch u.r nAv oai n lac abc le o u at n th b ttal pan s:/c/es ins( ti± tu )t , io wn hal ic.h van deg pu en ard ds .c o on m t/h ce o n pter enft o/rd m aan m/cin e so t/fi ifg in -ancial markets and Few 4 c0 o1 n(sk) ist en Plan t 4 s0 G 1en (k)er pat are? tic iCh pan an ts g e hsad in n4o0 1 p( ar k) t o Plfan th ei Ac r c4 o0 u1 n(tk) B al bal an an ces ces an in dves Astsed et Al in lo ec qat uiito ies, ns, b 2u 0t1 9 sl– ig 2h 0t2 n 3et ,” E m Bo RvIem Iss en ue t US Department of Labor, Employee Benefits Security Administration. 2024. Private Pension Plan Bulletin, Abstract of 401(k) C o pln ans p is artte icin pan t S tsa , an md p ilte r P epra esen r E tq ic tu si ip a ta i we n ids t e s a r H an ng d a e d T o L fa pr o ar g n te ig ct ip e D an r T a tst— e ein nF c u lu u rd e n in T d gs h tha on se P wa ho r tar ic e iyo pa un n gt s an i dn in t dh ivid e uals >5 to 10 48.1% 37.9% 2.1% 47.9% 208.5% 32.5% 60s 39.3% -3.4% 35.9% 2.8% -0.5% 38.7% F igure 6, Consistent 401(k) ParticiT pe an B na ut lra s en In cev dest Fuin ndg s i n Equities and 4 T0 ar 1(g ket ) p Dat artici ep F au nn t d as n a ................................ lysis ......... 13 invested in target date funds at year-end 2023. This high level of persistence in target date fund investing was transformation/insights/pdf/2025/has/2025_How_America_Saves.pdf. tB 15 29 oy war S B • a r di ef ra th o g , h at n ai n n o tH z h s .er e ol 6 o o 41 al rd h llo e ,oo s c an n, ls at de id n isI o g ICI CI o n n oo c ; ftR c hS as u e ers t rse ear ied n et ve ve s cb s h n iet n t m Per w B an en een a sis tp n ss ec d , h year ivid t el Iive CI du -, ial en n ;vo ’sa td h lac n .e 2 d 3 0 c 4 1 1 o 0C , 9 u 1n ra n (an o k) t;.i g d an 6 p year l(Co an d Au ac p g -en u e csloa td u 2 nd n 20t 02 ,2 , 5 3). EB . To RI h ave zero investment in equities, the >30 All • Li See fe Co st H m yol2 p e ld 0 an en f2 u2 y n , Sc ds F stoo ma h rc m rk a iss, n 5 ist5 ai a eq 0n 0 n u d a An i C tp yh r n ed iiu n sm al et th 2 R eer0 ep m 4 20 3 io n.1 red t(sk) r ( iVer p sk lan ls ev i’o sel ns p an 1o .0 n d )s.gen o Wa r (e ts r hal h e iln y em gutse Io p nn lto e ,w yer rDC o es rds ) t:,. U d su iS v c iD d he ep a ns d ar “ sc t , m o gn a en sin er ts vo , at a f n iLabo ve d ,” “rm , E om der pla otye e,”e oB r enefits Evidence of R>ea 10 ltlo P oca 2 e0 rce tin on tag e A o c 28 ft .i co 6 v % in tsi yst te o ntor 40 1 fr 2( 6k om .) 5 % parT tia cir pg aet nts D -b 4y .a 4a t % g e eF , ye un ad r-e sn A d 38 m 2 .2 0on % 19 g an Con d yeasr 1i -1 s e4 n t.en d 8 % 20 t 24 301(k) 21.1% who are new to their jobs, as well (as yea o rs) lder participants and those who have been with their current employers for many All Age4 G 5.r7 o% up -4.0%2019 2020 41.7% 2021 2,2 3. 9% 2022 -1.2023 1% 44.7% EBRI/ICI 401(k) Database at Year-End 2023 200 observed across all participant age groups. GICs 1 2 3 4 • • c woitnhtd rirbaw utial on s s( -t) o, o bro r w ro itw hd in ra gw (- al ),s an frodm lo tan he rac ep ca oym unten in t sa ( + di) ff. e rent proportion than the existing mix of assets, and 401(k) investor would have allocated none of their 401(k) balance to equity funds, target date funds, non-target date “aggr 40s ess 4 ive” inT to htei ar lA n c llo am ntr ei t bu ot iio ndi ns c 2a 7t .3 e % th Te oftu an l b d’s en r 2 e i2 sk f.it 8 s % lev diel sb . L urif sest edy -4 le .7fu %nds geneo ra 3 th 5 lle .y0 r a % itre e m in scluded 10 i1 n. t 1% he no As ns –e tta sr ge a1 t 9 t y . da e 1a %rt-e end Security Administration (September). Available at Participants 20s All $5,442 $10,680 $17,471 $20,041 $32,285 year 16 s. Participants in the consistent sample are both older and longer tenured than participants in the overall database F igure 7, Changes in Allocation tPe o E rce qun ittia es g e A m ofo p na grt Co icip na sin stts en bty 4ye 01a (rs k) o Pfar te tin cu ipre an , tye s ................................ ar-end ............... 14 Non- and For statistics indic Pat aritn ic g ipta hn e ts h iigh n ter he ipr r to w pen entsi iet sy of withdrawals among participants in their sixties, see Holden and VanDerhei Federal Reserve Economic Data (FRED). St. Louis: Federal Reserve Bank of St. Louis. Copyright Information: This report is copyrighted by the Employee Benefit Research Institute (EBRI). You may b • alan 2000 M • co ed ney c f h C u an o f nu n d g n s ses d i,s so t> e tr c 2o n o c ttn o to 4 h $169 s m 5 0 e is 1 p tas ( an k o)s f y et pt lh s a so tn o h s 8 c p e el 1 k. a .d f3 r u t % An iin c nd is p al s ia d yz d n e esi tis o n fg h g to n th 4 h led d e $172 8e i.n 6 ac g g % to r co e o m q u u u p ai n i tto n i e f( t s ai ic no n cn l 8 u a s .d 7 is s % in ttab en g rlte eb 4 s0 al h 1ar an (k) e c 4 i9 p p n .rar -g 9i$ c % 7 t an e. i9 c id p an chtan s, g 3 tes h 39 e . 0 id n % a tth ae s u hn od wer t $h l1 yin 4 at ,7 4 .3 g 88 % asset balanced fund category. www.dol.gov/sites/dolgov/ >2 fi ltes/ o 5ebsa/$ r2 esear ,767 chers $/7s,t 6at S 15 & is Pt i5 c0 s0 /$ r ²1 et 3i,r 9em 12 ent-$b 1u 7l,l3 et 96 ins/pr $ivat 29,1e 3-2 pension-plan-bulletins- Target- Other Key Findings: Figure A6 b Ty his th p eap en er d p orfo tvid he es per an io d u p od f at an e aloys f a is ,l oyn ear git- uen din dal 2 0 an 23 al . y sis of 401(k) plan participants drawn from the EBRI/ICI 401(k) As 200 w 2.it In h eq add uiittiie osn, 20s , n mo on ve har md en shti p in wi th th e 30s dc raw onc aen ls, wh tratiic oh n a orfe 40s tg ar en get eral dlat y le im fu itn ed t ds 50s oin emp 401 lo (k) yee ps ar wth ico ip 60s a an re ts aged ’ acc 5 o9 u½ nA t o s ll r r co esu o nlsi der lst ts e , n fctro on m st itute $100,000 160 The c co hp an y, gp e riin n tan , oy r d inodw ivid nlouad al p th ar ist ircep ipan ortt ’s s o4lel 01 y (k) fo rp p lan ers ac oncal o uan ntd b n aloan nccoem is m ier nfc lu ial en u cs ed e, b py ro tvid he ed m ag thn at it u al dles har od f tc ho ese pie st h rr et ee ain Years of tenure 2001 >5 to 1174 0 40.2T % arget- 31147 .7% -0.8% 42.- 01 % 19 160.4% 1,2 7 70 .0 1% allocation of funds, such as target date funds). 0.4 percent, on net, moved to a z> er 5o t oeq 10uities D 7 al a ,7 tlo e 3 c 3ation— 13 3,.3 65 5 percen2t0 o ,6f9 S t 2h ta is b le g-ro 2u 2,p 5 3h 2ad no 3eq 5,4u 2i7 ties at year-end 2019, Changes in zero allocation to target date funds 1 2 F 30igure 8,ab Ch stan rac gtes -2 0 in2 2 Al .p lodcfat . ion to Target Date Funds Among Consistent 401(k) Participants ............................... sample 16 Ho datlab den as , e. Sar Tah he , ESm tepven loyee Bas Bs en , an efid t R Cr eai sear g 4 Co c 0h 1p (In k el ) an s ptla id tn u . tp 2 e a0 r(2 tE i2 c B i.p R “4 aI) n0 t 1 a an ( gk) ed Pl than e In As vest setm Al en lot c at Co io m np , an Acy c oIn un st t itB ual te an (I cCI) es, an als do Lo pran od uce 30 31 a ma GIC jos riar M tye o o if ns al su tl 4 w ran i0 tc he 1 d c r(aw o kmpa )al P s ( n lsee y an pr P o Cdu lar a c kr t s t 2i 0 tc h 2a 5 itp ). gu aar n Yt a es n atr Ar e -e e nd a Figure e 2 spe 0 i 1n 9 ci P fic lrY 1 a ae tn a e rs -o ef w nr det 2iu 0tr 2h n 3 E onm the p ilno vest yeed r Co capin talt r oivb eru th ti eo lin fe s o f the changes in asset values, in addition D to a tr eeal location activity by participants. Althou Cg oh m pin af no y rmation on specific trM ad em inog : • fac to 2002 Srtsab rel le at valu ive e to p trh oe d u 182 sc tar ts,t in su gc ac h as co u G nICs t bal an ancd e. o 147 F th oer r ex stam ablp el e, valu a c e ofn utn rid bsu,tio ar n e ofr -ep a 2 0g 3 oiven rted d as ol lo ar n e am cat ou eg nt o rpy. ro d1 u,c 5es 65 a larger any and all > c1 o0 p yr to i2 g0ht an Eqd ui to y t 2h 4er .6% applicab Blae la 2n n 0ce o .5t% d ic es B co on n dt ain -6 ed .M 1 % otn h eer y ein,V an alu 3 d e 3 .y 6o % u may cite8 8 o.r 5 % quote small p 1o 7.r2 ti% ons of 2019 30 Z sero in 2020 M Alo l ved awa 2y 4 ,f6 ro 13 m 2021 3 R 4e ,m 92a 1ined at47,06M 3 ov2022 ed 4 to 7 ,ze 36r4 o N 6e 8t ,7052023* Zero in and 4.0 1 percent had no equities at year-end 2023 (Figure 7). This net change reflects 0.7 percent moving from zero Policymaker >30s, plan sponsors, an 4% d individual retiremen 4% t savers are interested in understanding the w 3% ealth-building $80,000 Although annual updates of the EBRI/ICI 1, 2401(k) database provide valuable perspective 2s of 401(k) plan account 4 3 Equities include equity funds, company stock, the equity portion of target date funds, and the equity portion of non–target date bal 6% anced 24 an annual Ac ctrivit osy s-isn ec 2t0 io 1n 9al .” an ICI al R ys eis sear , wh ch ic h P er co sv per ecst i4 ve 0 12(8 k) , n po lan . 4 ,p ar antd ic iE pB an RI ts Is w siu th e a B rw ief id,e n roan . 5 g5 e 7o (fM paar y)t.ic Avail ipatio ab n lex e at per ience. cont2003 ract.Pe rcentage of186 activ Fe u n4 d0 s1(k) Fup na ds rticipaF nu ts n141 dis n plaF nu s nd w sith eF mp und lo syer co Fun ndts rib 300 utiS otn os ckby plO an th e arsseU ts, nkn polw a1 n n, 9 ye 3 E2 q a urities Age Group >20 to 30 19.6% 17.3% -7.4% 29.3% 67.9% 13.8% activity of Distribu 401(k) parttio icipan n 2019 tof s is 401(k) not avail zerab oA ble ccou y 2 in 0 2t3 he nt EB R Balances I/ICI ze 4r0 o1(k) d by atab Siz as be, y e of 20 2it 3 is A po cco s cs hib an lun e ge tot oBalance bs2023 erve activity away 120 g 17 B ret ow w te t hh en e rrat ep year eo w A rt- g h en e p en rd o vid ad 20d ed 1ed 9 t an h to at d a y ys ear om u al - den lo er s d o ac 2 ver 0 c2 o3 u b,n at t s itt m o hc an k an m d it ar w wket io th u lsd p g rio fen p ad er er d al c eid lty at ta o io p n a p .r lec ar An ig at y er ed u s o e n m e. bo eyo rO en tn h td h an e th o b e toh snc er d o p m he an ar od ket f ,t h is n e ves (fFoig rteg m uren e o in A t g 7 ). Median >2 to 5 7,198 15,199 24,678 28,432 44,927 See B funds. A rightS target date fund typically rebalances its portfolio to becom cope a9 n8 d In .7%vestment Company Institute 2025.e less focused on growth and m ore focused on income as it approaches 8% eq F igu uir tie es A1 to , C at o 9 n least 8s.i6 s% ten so t m Sa e, m 1 p.l1 e p Was ercen Otld m ero T vin han g f r Par omt ic sio pm an e ts to i n z er tho e, E an BR d I/ 2ICI .9 p 4 er 0c 1en (k) t Dat stickin abas g e w iat th Y zear ero- E ho nld d i2 n0 g2 s3 i n .... b o 17 th power of> 4 20 01 t( ok) 3 0plans, a key component of the US retirement system. Because the annual cross sections cover balances, asset allocation, and loan activity across wide cross sections of participants, cross-sectional analyses are not 12% 10% 2004 204 167 204 2,193 20s www.ici.org/files/2 20 3.2 32 % 9/8 p.er 3% 2 69 8 68- .1 .0 3 % 4 %.pdf 3 an .1d % www2..e 7b % ri.org/0d .1 o% cs/defau 3.3l% t-sourc 0e/ .3p %briefs0 /.eb 7% ri_ib_5 0.5 57 % _k-xs8ec 5.- 0% • B u t5 0 tT h sh at e s on th ap ers h co at t eg c Aan lo l rn yo its d th et eer rm esid 22 in .5e u % al ho fw or 4o0t1 h( er k) 17 i.n p 8ve % artsitcm ipen antts s,’ -ac s 6u .2c c% o hu as nt rb eal alan es c 2tes 9at .4 e % far fu e, n dnso . r ho 7w 5.0 as %set allocatio 1n 5.s 0 % change, 2006 2007 20s 2008 $60,000 2009 24.1 2010 % 2011 -2 2012 .7% 2013 2014 21.4% 2015 2016 3.2 2017 % 20180.5% 2019 22020 4.6% 2021 2022 from or and passes the tar to 100 percen get date of the fund, w t or zero tar>g 5et to d hich is us 1at 0 e fun ually inc 2d 0 ,8 h1 o1lluded in the fund’ dings 3a 0t, 8year 18 s nam -end 4. 2 e. ,Am 490ong co 43 n,s 3i9 s9 tent 40 61 4,(1k) 98 participants between r 31 Al et l u el rn se s eq of u aal g,i ven this p w er oc uen ld th ag ave e ptren od du ed ce tlo ar ig ner crease dollar th ie n cp rr ea op so es rti(oonr o dfec 4r0ea 1(sk) es) p lw an h en as scet os m ip no vu est nded ed in o neq a ular ities. ger H ao sw set eve bas r, e. requires EBRI’s prior expressPercentage permission. For of par permissti ioc nispants wi , please coth acc ntact EBount RI at permissions@ebri.org. Other stable value funds include synthetic GICs, which consist of a portfolio oF f fi ig xu edr-e in A come 8 securities “wrapped” with a N 20o 19 t e an sd 2023. participants with a wide range of participation experience in 401(k) plans, meaningful analysis of the potential for w 18ell suited to examining the impact of consistent participation in 401(k) plan 17% s. Cross sections change in composition 2005>10 to 20 223 189 146 2,393 30s2 >2 to 5 31.5%65.6% 56.8% 24 .2 2% .6% 3.7% 5.80 % .3% 3.14 % 4.5% 0.9% 261 0..1 8% % 0.4% 37.8 84 % .1% Data from the ICI Survey of Defined Contribution Plan Recordkeepers find that DC plan participants generally stay the 3m Ea B 30s y2 RI/2 IC .p I d 40 f. 1 (k) D 2a 8t.a 6b % ase -3.0% 25.6% 3.7% 0.7% 29.3% over the A sset allocation b years. For ex y age group ample, b is am ecau >1 ong the co 0 s e too 2f0 ch nsistent sam an4 g4in ,3g 1 9sa ple of 2.7 mpl5 e6 s, 9 m o8f illion 401(k) plan pa 0 provid 7er 2,s 0, 6 7 plan rticipants with accou s, 6an 8,8 d9 3 particip 9nt balances an 5,2t 0s2, chan at the en ges in d of asset year-end 2019 and year-end 2023, few moved 9 to 7.,3 o %r away from, these extremes of target date fund holdings. In al l ooctat her io nw to or d es q,u g itrio es wtohn lry at ies nc rar eased e a f u m no cd tie osnt lo y fo tver he rtel he atp ive er io sid z e (6 o7 f .t1h e per do clen lart ad at jyear ustm -en end t t2 o0 t1 h9 e an sizd e 7 o2 f .4 th p e er incden ivid t at ual ye ar- 80 Figure A2, Consistent Sample Had Longer Tenure Than Participants in the EBRI/ICI 401(k) Database at guarantee (typically by an insurba ancle an coc mp es an i y n s or ape ban cki9fi )7 ed t.o 1 p % rran ovide ge ben s, efiy t pa eaym r-end ents a2023 ccording to the plan at book value. 32 2006 $40,000 251 228 303 18% 2,773 401(k) participants to accumulatD e i rs ettirreim ben utti a o sn set o s fm 4 us 0t1 ex (k am ) Ac ine tc he o 4 u 0n 1(tk) B pa lan la ac nc co e us nt b s o yf S par ize ticip o anft Ac s whc o ount Balance • fr om 40s T ye he ar fi n to al ye cat ar > eg 5b to ec or y, 1au 0 u sn e kn 3t9 h .o e 2w % sn 3 el 6 , ec .c 4o % 4 tn i4o .s3 n is % tosf o dfat f 2u a 2 .0 8 n % p .d 0rs % o vid that er 5 .4 s c% o an uld d - 1n s .0 a o 0% m t .5 b % pe le i d oen f p 4t.lian 8 f3 i% ed 8s. 2.u % s in 1g .8 a % given 131 8 .p .3 8r % % ovider0 v .6ar %y an 24.d 7 37 % b .1ec %ause each year fr Co 40s nsist om en 2019 through 2023. A t Samp3 le 2.5% ge group is based -3.0% on the participant' 29.5 s age at year- % end 2023. 3.9% 0.9% 33.4% course. D> u5 ri n to g e 10ach yea r 4 f 0r som 2016 th Arlo l ugh 202 62 3,,9 few 58 er th8 a1 n, 3 38 9percen9t9 o ,9 f 3D 4C plan 9 pa 5,2r 3t8 icipant 1s 2 s 8,t6 o0 pp 5 ed contributing to their allocRe atio pn o r fo t rA tv hail e en ab tiil re it d yat : T ab hia ss re ep ar oe rtn io s tavail a rel aib ab le leo m n easu the in re ter on f et ho at w iw nd wiw vid .eb ual ri .p oar rgt i cipants have acted. A consistent 96.4% account. Year end 2 -E 0n 2d 3 )2 ( 0F 2ig 3 u ................................ re A4). While it is not................................ possible to directly ob................................ serve 96.t3h % e impact of eac ................................ h of these factors ins .............. ide the 18 1 2007 273 261 23% 215 2,975 5 50s >10 to 20 43.6%23.2% 35.0% 21 .2 8% .9% 6.8% -6.3 0% .6% 7.23 % 0.3% 2.5% 78 1..9 4% % 0.6% 15.6 77 % .9% m 32 T ai hn e tai Empl Note: ned o Funds inclu ye ace coBu en ntefi sde m o t R ver utual fu ese al ar l o c nds, ban h f In the st year ik collective t tuPe te s( rce E bB ei n Rn tI rusts, life in a g ) g is s e ta uo no dfi ed pn surance se apr rt (c o ici o fin p t,s a n in sparate a o tten n s pa w t irp tth ccounts, a iar san a t IiC cco c,E i p pu B an uo bl nd any p n ft A tis c ) b p U .a S o F l a lC o iooled inv c n r oy rce e prx o esea s a ram itn estm ep rsp c le, h ent prod e o b ci rec g fian e au d uct prim iz sra at 9 e6 n io o .0 g fn % arily e t cs, h han at ye g do a in r-e es g n nd ot 2 023 50s 36.3% -3.3% 33.0% 4.5% 1.2% 37.5% Ho 401 ld (en k) ,p S ar ar tiah cip,an Stte sven join B o as r s lea , an ved p Cr l> an 2 ai s tg o. 5 Co Inp ad elan d 14 itd ,i0 o .6 n 2 8,0 t2h 3e . an “ 2Ho 5al ,5w 0 ys 9 4 is0 1 co (k) ver 3 7Pl ,s 9 an 1ac 9 c Par oun ti4 t c 1 ib p ,2 al an 1an 5tsc U es s eh 6 el Lo 1,d 7an 6 i1ns 4 o0 ver 1(k) T ip m lan e: sAn at 40 S 1o (k) me plran ec a orcdk coeepe untsr . S s su om pp e lo yif t ng d hese at pa a wre tirce ipan unabl ts ma e to y ha prove vide stocp oped mplet coe nas tribu sett a inlg b locat eciau onse det th ai ely orn ea cc er hted ain t p he oo clo ed nt a ribu sset tio c nl l as imi ses t. A substantial share of consistent 401(k) participants had their entire 401(k) balances i97 nvested in target date funds, and >2 to 5 95 96 .8% 96 96 sample is necessary$20,000 to accurat 28% ely gauge changes, such as in exposure to 96 96 eq 96 uiti 96 es 96 o 96r target date fund use, for individual 9595 949495 41.5E %BR2008 I/IC invested I 401( in the k) dat security ab 285 ase, indicate it is 94 d. Perce possib ntage le E to B s are do RI ob /ICI 4 ser llar-weighte 233 v 01 e (w k)h Data 94 eth d avera er ba sp e* ar ges. 94 tici See Figure A p Co an ns ts is en tent t S 4 for additional detai. era ed -Imp 7 n7 d o e 0 ler x ³exited an asset class en 2,2 ti0 rel 3 y over 40 60s >20 to 30 39.2%6 19.3% 34.7% 92 21 .8 93 4% .5% F 8.1 ig %ur-e 7. 7 9 0% .93 9% 9.72 % 7.0% 2.7% 59 1..8 3% % 0.6% 12.5 48 % .7% 92 9292 929292 lobby or take 60s positions on 3 leg 5.3 i91 sl %at91 ive proposa -3l.s3 . % 32.0% 5.0% 1.7% 37.0% 91 samples of providers, plans, and p >ar 5 tto ic 1 91 ip 091 ants, 3c 4h ,4 an 42ges in4 ac 8,2c9o 5unt bal 63 an ,6c 1es 9 for t 6h 3e ,1 4 en 1 tire d8at 9,ab 67as 3 e are not a r 90 el 91 iab 9191 le90 participan An tsal ’ c ys ur is r en oft Lo em an p lo Ac yer tivit s.y R oet f Co i90 ren m sen isten t stavin 401 g(sk) h el Pld an in Par plan ticsip at an p ts r,evi 20 o1 u6 s –e2m 0 92 5 p.0 l0 o.% yer ” ICI s oR r ersoear lled c h o ver Per sin ptec o t 90 iin ve di vid 29u , a nlo . fo See r oH F no o er l o den al r lmo ,o S fr ce th hro e ass f ftih g , e u an irres d cliC en in h itt sm sh . Th is 2 r0e e2 fi p3 89 on f ral o t,r E c D o BC m R pl Ip /Io an C nI p en 4ar 0 ts 1 t i(c m ki) p ay da antn ts’ abas otan ad n ed u ial ntc o ac l utdes h tie vit o tio es n tal l be y spl tp w an resen een s fo 2 rt 0 ed w 0h 8 b i a cec hn d at au 89 2 ls0 ea e 2 st 2 o.f 9 F r0 o o ru pe a 89 nn d r 89 c a in en n ga .t o lys f a is lo l f plan some net movement away that full concentration occurred between year-end 2019 and year 8889 -end 2023. Analyzing the 5 88 EBRI/ICI 401(k) database* 87 88 F 4i0 g1 u( 2009 rk) e A p3 l0 an , t4 o 0 p 21 ar (k) tic iPl pan an 256 t sAc oc ver ou n titm Be. al an Thcies s pAm aper on w g206 ilCo l ex ns am istien ne t t4 h0 e 1ac (k) c o Pu ar nt tisc io pfan co ts n 431 ................................ sistent participants,87 th................. at is2 , ,t 7h 1o 8se w 19 h o Chang Source: T es in Co abulations from nsistent EBRI 401 /ICI (k Participant-D 86) Partici irected Retir pants’ A em cc ent Plan Data Collecti ount Balances on Project Between 2019 and 2023 the A pler l Cio on dsi an steal nty S za ed m >3 . p 0 le 17.2% 13.8% -7.6% 24.3% 53.2% 11.3% 40.1% 37.5% 2.9% 6.8% 0.7% 7.7% 2.3% 1.3% 85 0.6% 67.1% All 33.6% -3.2% 30.4% 4.3% 1.1% 34.7% >10 to 20 80,908 100,794 121,474 114,124 152,485 $0 32% measure of how individual parCh ticipa an n ts g h eave s i n far Al ed.l A oc coa nt siiso ten n t t s o a E mpq leu is i tn iec es ess Am ary o ton ac gcurately gauge changes, such r A etp irp em een n7d t, ix ac anc do u En BtR sI (Is IR sA us e ) B ar rie ef n , o nt o i.n 5 c9 lu0d ed (Sep int e th m e ban er)al . ys Avail is. ab le at www.ici.org/files/2023/per29-07.pdf and 2 ass cone tr tis bu co tiu oln d a be ct iivden ity tdu ified rin.g the bear market of 2000–2002 using the cross-sectional EBRI/ICI 401(k) databases, see Holden Consistent sample 22% grou 2010 p of consistent 40 265 1(k) participants, the data 243 show that 1.0 percent, on net 337 , moved away from a 100 3 p,er 11 c9 ent target 79 The Investment Company Institute (ICI) is the leading association representing the asset management industry in service of 78 7878 77 m ai 6n 0t sained accounA 77 ts ll in 77 each year 19 2019 .f 6r% om 2019 th 1r 4o .2020 6u % gh 2023. -7.32021 % 23.3% 2022 56.8 %2023 11.9% 76 93.8% 76 76 >20 to 30 117,926 141,034 165,419 153,218 198,044 0 Altogether75 , fNote: A rom y target date ear 74 -end 2 fund typically reb 019 throughalances its portfo year-end 202 lio to becom 3, the aver e less focused age 401( on growth an k) plan acd m cou ore focused o nt balance n incom amoe as it ng the group of 73 74 as growth in account balances or changes in asset allocations, experienced by individual 401(k) plan participants over and 72 2011 Van 72 Dw er w hw ei. eb 20r0i4 .o . rT g283 h /d e oan csal /d ys efis au filn t- ds sotu hra cte/ , o pver brief al 250 ls , /4 eb 01r(i_ k) ib par _59 ti0 c_ ipkan -lo ts’ ancso-n 1t2 risbu ept2 io3 -1 n. r pat dfes . were little changed i 3n ,1 2 10 200, 2001, 71 Consisten20% t 401(k) Participants d Fiat gu e re fuA n4 d, al Alver ocat ag ioen As —4 s5 et .7 Al plo er cc at en iotn o o f ft h 4i0 s1 g (k) ro uPl pan at Ac year co- uenntd s b 2y 0 1 Par Y 9 e a an tri-c E d ip n 4 an d4 2.t0 7 2 Ag p 3er e ................................ cent at year-end 2023................. only held tar 20 get individual investor> s. 2 ICI’s to 5 member5s5 i.n 0% clude mutual 36 fu .7% nds, e Fxig chu an re 5 ge . A 8- % tr1 aded fund3 s 8( .3 E% TFs), closed 20 -en 9.7d % funds (CEFs) 32 , .an 7%d unit To gain insight into participant behavior, changes in allocation to equities overall—and to target date funds, in Dec-16 De approaches and pass c-17 Dec es the target date -18 Dof the fund, whic ec-19 h is usuall Dec-20y included in the fund’s nam Dec-21 e. Funds incl Dec-22 ude mutual funds, Dec-23 Dec-24 50s All 111,251 136,230 160,414 150,466 194,736 c T o on e sx isp tlen orte p th ar e tifcu ip llan im ts p ac near t olfy o d no gu ob in led g p (ar intcic reasin ipatiog n b in y 4 80 01 p (k) er cp en lan t;s F an igu dr e to 4 u ),n r dier sin sg tan frd o m h o$ w 8 2 4,0 21 7(4k) at p year lan p-ar entd ic i2 p0 an 19 ts th oave B tim ac e. 2012 k g Th rou is pnd aper on p rF oa vid c 303 tes or an s I u nf pd lu at en e o cfi ng a lo 4 n0 gi1 tu (k 282 di) nal P lan an alA ys cic s ou of nt 40 1 B (k) al a pnc lanes par 357 ticipants drawn from the 3 E,B 4R 95 I/ICI an Tab d 2le 002 o wf hen Co cnt oP mp ae rtar nt ice ip d s an to ts 1 i9 n9 t9 h. e iOn r B fo ar av lta ie n es c rag ed e, Fu 4 n0 d1 s( k) participants’ contribution behavior does not appear to have been Percentage of consistent 401(k) participants by age, year-end 2019 and year-end 2023 bank collect >5 to 1 ive trust 0 s, life i 3nsurance separ 4.0% ate accounts, and any 25.3% pooled investm -0.6% ent product pri 31.9% marily invested in the s 119.9% ecurity 21.8% d inat ves e tfm un en ds t t(rF uist gu sr ( eUIT 8).s )T ih ni t s hne et 20% U n ch ited S ange t artef esl,ec atnsd U 4.0 C Ip Ter S c an en dt s m im oivin lar g fu aw ndsay o ff fr er oe m d t th oe in1ve 00 st o prer s i cn en ott h al elro jcu at risdi ionc ttio o n ss. om ICI et a hiln so g particular—are examined. For the most part, there were relatively small changes in consistent 401(k) plan participants’ >2 to 5 20,287 33,586 47,886 50,643 73,203 Consistent Sample Participants Were Older Than Participants Annual percent change in total return index $ f Ho ar 14 ed ld 8 2013 en , 0 o9 ,ver 2 S ar at an ah ye ex , ar Stt-en $500,000 e en ven dded 325 2B 0p as 2er 2s i,o ( F an di,g d iu t rCr ie ss ai i m 2 g p an Co ord tpan el A3 an t )t.o d 326 T .an h 2i0 sal 2 ty 4 rz an .e “4 sal0 at c1o es (n k) sii n s Pl tto en an at As c go rs m oet upp o Al u oln fo 645 d c pat ar an itoin c nu i,p al an Ac av c ts oer u (a n ag tl o e Bn al g gr an io tu w c des, tih n al ran at 4 s ,1 e a d4 m o 8 Lo fp lan e) who indicated. The consistent sample is 2.7 million 401(k) plan participants with account balances at the end of each year from 20.1% 2, 3 F 4 ma i0 g1 t uer (rk) e ial A d ly 5 at ,aff ab 40 ea 1 cst(e. e k) >d b 1 0 Pl y tan o t2 h 0 e Co be ntar ri m bua t 2ir 1 oke .n 4s % t ,i n In eves quittm ies en 1fr 7t .o 2 R m %et 2u 0r0 n0s ,t h Bren o-u 6ef gh .7% it 2 s 0Di 02 s,b wh urset e 2d h 4,.e 6r an % mea d Asu ssret ed i s ................................ 6n 5 d .5o %llar amounts 1o 3r. 4%. 21 Introduction .......................................................................................................................................................... 5 r lAg ess epg r,esen r eg 3.0 at t s p e er id ts at cen m a emb to m n o 4 er vin 0s1 i(g n k) tt o hpe la ian r c 1s 0 apa 0 p rp o cer ivid ty cen as e itn i ns al ve ig lo h st ctment at in io to n a ,t h an de vi d p s e o 4rs 1 s s.it7 b o l p e cer oin llc e fen lcu ten itve w G cie iIn tC h ve o s f1 st 0 eac men 0 p her to t c fr en u th ste t s al f(ac lC oIc tT o at s) rs io a tnn h d at to r e c tar tau aig ls s et eepa cdhat an ra et g el fes u y n d in s >5 to 10 43,529 59,355 75,960 75,204 103,927$58,898 exposure to equities between year-end 2019 and year-end 2023. 2019 through 2023. Age group is based on the participant's age at year-end 2023. 2014 $450,000 349 366 278 4,406 S&P 500² in the EBRI/ICI 401(k) Database at Year-End 2023 1 h5 ave .8 p ber een c Ac en tpitvit ar otver y > oi2 n f 0 tt 2 h h to 0 e e 2 3fd 2 0 oat .u ” r ab ICI -ya ear s R e e 1fp s 7 oer ear .r 8 % ian ocdh ex (P Fer tig en u sp r de ec e 1d 4 2 t ) i.p ve 9 . er % T h 3 ioe 0d ,.m nT e oh d .i is 3 an ,-p 9 an ap .ac 1% d er c o E u p Bn rR o tI vid b Is ales san u 2 e 1 an c.e 4 B % ram an iefal o , y n nsg oi s .t h 6 oi0 fs 4 6 t 6c h .( o 7 e Ap % nac sr is ic l23% t)o en .u Avail n t tg b ro al ab uan 1 p l0 e .c al 1at e % sso o g f rew percentage of salary they contributed. Non- and >10 to 20 100,575 123,869 147,307 138,084 179,947 managed accounts (SMAs). ICI has offices in Washington DC, Brussels, and London and carries out its international work ac in c bo ou th n t2 b 0al 19 an an ces: d 2 c0 1 o 2 7n .3 3 t.r % iIn bu toio th ner s, w ino ves rds tm , 91 en tp r er et cu en rnts o , fan co dn w siistthen drtaw 40 al 1 (ok) r lp oar ant iac ciptan ivitty. s w Biet thw teen heir year 401(-k) en ac d 2 co 0u 19 n tan s fd u lly year - $400,000 Sam 2015 ple ofSource: T Consistabulations from en 378 t 401(k) Par EBRI ti/I cCI ip Participant-D ants, 201386 9 irected Retir –2023 ................................ ement Plan Data Collection Project ................................ -1 ........................... 4,377 5 ICE BofA US Corporate Index³ >30 15.6% Percent1 a0 g .5 e% of participa -8 n .8 ts %by age, ye 2$ a 04 .r-e 5 3% ,1n 4d 7 40.5% 8.9% F Ai g fu erw e A k6 e,y M in os stig 4h 0t 1s( k) em Ple an rg Par e frto icm ipan loto s k Ar ine g Ti n a at C r g h Pl e a tan tn h -g e s e24% s 2 w i.n i7 t$ h 1 4 m 0 2 E 0 ,m il 6 p 3 li p e 7 o rlo c n e y n er cto aC n llo s on c is a tO t r tie itb o hn n u e rt tt i o o p n e ar s q u ................................ tiic tie ip sants in the EBRI ............. /ICI 40 22 1( k) 2 to .7 t w moil lan iow n dw ca w on h .is al ciis f. o tten rim gt/es fp ilar e is tts /i2 cli0 evel p2an 4/ tp o ser f i n $ 3 2 0 t3 h -0 ,e4 3 6 E .8 p Bd R ifn I/ an 2 ICI 0d1 9 w 4 0 w t1 ow ( $ k) .5 e b 8 dr ,at 8 i.9 o ab 8 rg as i/n de o 2 c o 0sver 2/3 d ef (ta h au e c o ltfm - osu p oro u -u year rc ne/ d p an p ber rn ief u ioal s d/ eb aver frorm i_ag i b y_ ear e6 g 0- r6 en o_ w kd t- h x 2 s0 rec at 19 - e of 20s >30s 20 to 30 179,7640s 6 214,481 50s 245,538 32% 226,23 60s 5 287,323 All 15.9% t 19 hrough ICI Global$350,000 . 40.0% en inves d 2016 2t0 ed 22 i n ( tth ar e glat etest dat d e 399 at fu a na dvail s at ab ylear e)T, a -c en ro ge n d tt - r2 ib 0u 1t9 io w n 391 s er te o f4 u0 ll1 y( ik) nves plan ted s h in av tar e a gver et d ag at 335 ed e f u $n 5d 7s 7 at bi lyear lion a -en ye dar 2,0 an 23d . 4 b ,7 en 41efits paid See Holden, Schrass, and Chism 2023. 20% Move D d a ta ew ay Stable- All All 23.5% $32,551 18.9% -5.8% 30.0% 80.0% 15.8% d 40 at 1( ab k)as Ple an o Par vert ic th ipe an fo tsu Can r-ye Ac arc u pm eruilo at de fS ro izm ab ye le Ac arc -o eu nn dt 2 B0 al1 an 9 ctes o y ................................ ear-end 2023. ........................................... 5 2 th 5r.o 9u p ger h c year 3en 0ap t)- ren ( 2F 4d i.g pu 2dr 0fe 2 . 3 2 .) . 31.5% >30 241,398 282,835 321,991 297,491 369,895 $300,000 20.1% Age of participant Date Company Memo: 2017 429 425 763 5,486 Changes in Consist Ee qunt ity 401(k) 401 (P B k) aa lp ar ln ace t nic d p aip rtiB an cio pn 28.7% a dt n s t ’ a gA M ell ono ey cations Value to Equities (including rollovers) have averaged $637 billifo rn om (Figure R eA5 ma )i.n In edves at tM m oen vet d rtet o u 10 rn 0s— interest, dividends, and realized and 3 $23,468 13.0% Figure A7, Domestic Stock and Bond Market Total Return Indexes .................................................................... 23 30.0% 20 See Holden 12,. B 8% ass, and Copeland 2024. 26.3% 1, 2 2 4 $250,000 60s All 132,704 158,767 181,976 168,683 208,038 25.0% Note: A See H ge and te o$ ld 1en 7,5 , B 8nure groups a 7ass, and Cre based on opeland 2 participant ag 024. For an e and ten anal $y 1si 8 ure at year-end ,s8 o 27 f 401(k) 2023. T participan he altl l category includes participants with m oan activity over time, see Ho issing tenure lden, Bass, and $17,961 2018 464 Funds Funds Fun474 ds Funds Funds Funds -251 Stock Other Unknow5 n,20 E7 quities Youn Ag ge er G a ro gue pgroups in the sa 1m 00p p le e ro ce f n cto ns 1i0 s0 ten petr c 4e0 n1 t (k) par 100 ticipants, pw erh co e nw t er bye muchN m etore $ 1l5 ikel ,8 10 0y 0 0 tp o e rb ce e nftu lly invested in Ch 21.8% anges in Consistent 401(k) Participants’ Account Balances ................................ $15,331 .................................................... 9 unrealized asset appreciation/depreciation—vary significantly from year to year. For example, they provided a A Atb 60s b oo ut th t year he - E en BR d I 2/ 0I 1CI 9 an 4d 0 1 year (k) -en Da d t2 a0 b2a 3s , e m ore than 95 percent of consistent 401(k) plan participants had at least 15.9% inform • ation. A The ccount balan aver $200,000 age ces are participan 401(k) plan t account b accoualances held nt balance in 401(k) plans a for consis t the participa tent part nts' ic current em ipants rployers and a ose each re net of p year frlan loans. om year- Am Holo dn en g, tS har e c ah on , sD isan ten iel t g Sr co hu ras p, si,n d an i10% vid d E ulal en 4 a0 B 118.4% ar (k) o n pe ar Ch ticiis pm an . t2 s0 ex 23p . er “D ien eficn ed ed a Co wn idte ribru an tio ge n o Plfan ou Par tcom tices, ipan otfs ten ’ Ac in tifvit luien es, ced 20 2 b2 y .” >2 to 5 22,923 35,531 48,556 51,350 71,000 Sample of Consistent 401(k) Participants, 1 200 .8 1 % 9–2023 4 Copeland 2023. in 2019 by 2023 13% percent 2023 change in 25% 202314% 2019 20s Age 499 25.9% 67.1% 1.1519 % 2.3% 0.1% 1.9%1,074 0.8% 0.5% 0.3% 6,258 69.7% 20.0% tar Fo gret e x daat mpl C e o fe, u n a n sid s t y s t eie n nar t b 4 -o en 0t1h d ( ky 2 )ear 0 p2 la 3 s n , , 16 p ha ad rpe ti clar r ip cen a gn er tt o s n h fet 4 o0 l d m 1 in (o k g ve ) p ta m ar rg en te ic tt i d p aw an ate ay t s fu in fn r o d th s m e fEuBllR al I/lIo CcIat 4i0 o1 n(s k )t da o tar tabase get d we ate r e fu in n t dh sei bret tw wen een ties ye , ar- Retirement savings held in plans at previous em 14.2%ployers or rolled over into IRAs are not included. 19% 20% s Fiig gn uirfe ican A8t, b Di os ots rt ib as u $150,000 t io th ne osft o 4c 0k 1 (m k) ar Ac ket co ru on ste Bsal har anpcles y i n b y 2 0 S2 iz0e, o an f d Ac 2c0 o2 u1 n tb B ual t h an ad ce a ................................ negative effect on ass .................. ets in 2022 w 24 h en 9.8% some ex1p 3o .0s %ure to equities, whether through equity funds, the equity portion of target date funds, the equity portion of 1F 50s 2.ac 8%tors Influencing Changes 17% in >Co 5 tn os 1is 0tent Par 45,2 t9 ic 3ipants6 ’ 0 Ac ,6c 7o 0unt B7 al 6an ,02c 3es ................................ 75,536 99,604 .............................. 12.0% 9 end 2019 through year-end 2023—with the e 9x .0ce % ption of 2022, a year of stock and bond market T thhe e rE elBat RiI/ ICI on ICI sR h iese p pr o aar jm ec c ot h n ig s R ep c uo nn o iq t rr tui b e (M u b tar iec oc n au h s),s . ie n Avail ves of itta m sb en iln e ct at l ur s et w iou w nrw nos .fi, c d an i.at od ra g w / pfriitlo e hvid s d/r2 aw ed 02 al 3 b/ yo 2 a r 2 -lw o rp an id t-e rac ec var tsivit u iet rve y. y yq4.p o Par f ptlian cd ip f .r an ec to s rw dkeep ho wer erse , 2020 20s 517 2.9% -0.7% 615 2.2% 1.8% 900 1.1% 4.0% 7,095 30s 32.8% 58.2% 1.2 9.8 %% 3.1% 0.3% 2.3 14% % 1.0% 0.6% 0.5% 88.3% 8.4% w 21hile 14 percent were in their sixties (see Figure A1); 25 percent of participants had two or fewer years of tenure at their en Am do 2 n0 g1 t9 h e an 4d 0 1 ye (k) ar $100,000 - pen ard ti c2 ip 0an 23t.s F w or it h ex ac am co pu le, nt s 6 8 at .9 t h pe er en cen d to o f f2 c0o1n9s iis nt en thte 4 E0 B1R (I/ k)IC pI ar4t0 ic1 ip (k) an td sat in ab th as eie, r t2 w .7 en m ties illio h nad ar e in the 6.5% 8.2% 10.0% The allocat1 io 0.n 8 t %o equities in TDFs varies with the funds’ target dates. For TDFs, investors were assumed to be in a fund >10 to 20 100,546 122,060 143,063 133,547 166,430 n th oe n– stto ar cg ket m ar dat ket e bw alaan s d ced ow n fu . n Fd ro s,m o rye car om -en pan d y2 0 st 1o9c k. th rT oh ue 7g .h 7 s% h year are -oen f cd o n 2s 0i2 st2en , itn ve 40s1t( m k) en ptar ret ticu ip rn an s ta sver whag o ed hel d $ 2at 43 l east billio sno m per e 7.2% Source: T 2021d abulations from eclines. O EBRI ver 582 al /IlCI , t Participant-D he averagirected Retir e accounem t680 b ent Plan Data Collecti alance increased on Project. at a compo 1u ,0 n6d 8 annual average growth 8 ,r0 at 33 e of 15.8 you 40s nger or had30s fewer years of t3 en .7u %re experi-en 1.0 c% ed the larg 2est .7% percent i2n .2 c% reases in a 1ver .2%age accou 4n .9t% balance between perm 40s itting the 2019 analysis of t3h 9e .3ac %tivit 2020 4 y 6.o 8f% partic 1ip .6an % ts in 2021 44 .5 0% 1(k) pl0an .5% s of var 3.yin 2022 9%g sizes 1.9 — % from ver 0.7% 2023* y large 0.c 72.8% o % rporat 8i2o .3 n% s 9t.o 8 % Changes in Cons 7istent 9 .0 4 % 01(k) Participants’ Account Balances Between 2019 and 2023 ............................................ 9 $50,000 current jobs, while 3 percent had more t6 h.an 2% 30 years of tenure (see Figure A2). c 100 ons p iser ten cen t stam of p th le. eir T ac hese coun cto n insv is est ten ed t pin ar ttar icig pet an d tsat he ad fu ac ndcso at un t year s at- t en hed en 20d1 9 o,f c eo ac mhp ar year ed w fro itm h 6 25 0.1 09 p ter hrco en ug t hat 2 0 year 23;- en the dy 8.2% whose target date was nearest to t> h2 ei 0r 6 to 5 3t0h bir1 th 8day 5,07.3 Alloca 2t 1i8 o,n 0 t 02 o equ2 it4 ies 6,0i9 n6 TDF 5s .2 9 i 2 % s 3 a ,7ss 47umed t 27o 1, 5 va 57 ry with investor age. The 7.7% year Ho equ ld i2022 t.en i es , S inar tah hei 7 ,r 5 an .4 90 % d1 ( Jk) ac 633 k ac Va con uD ner ts hr 28% ei em . 2 ai 0n 0ed 2. “ ab Can ou 617 t4 t0h1e( k) sa m Ac ec u frm om ul at ye io ar ns -en Gen d 2 er 0at 1 -1 9e , 2 (S 9 4i0 6 g.n 4i fp icer an cten In t)c o to m year e for- en Fud 6 tu ,7 2 r6 e 01 23 $10M or less 75.4% 7.2 >% $10M to $100M More than $100M All plans 22% 50s 40s 43.3%4.3%36.7% -1 2..2 0% % 6.0% 3.1% 0.8% 2.06 % .9% 2.0 4.% 8% 0.9% 5.1%0.9% 72.0% 0.0% percent from 2019 to 5 .2 1% 023, rising from $82,27425% to $148,092 at year-end 2023. The median 401(k) plan year -end 2019 and year C $0 o -n en sid st e 2n 0t2 sa 3.m Fp olr e ex inample, E BtR he I/Iaver CI 40ag 1(e k)accouC nt o n bsi al st an en cte sa of m 4 p0 le 1 ( in k) partE icB ip R an I/It C sI i4 n0 t 1h (k) eir thirties sm30s all *Data from business the year es—w-it end 2023 EBRI h a variety /Io CI f i401(k) database nvestment op are preli tions.m inary. 5.2% 4.8% 71.4% 5.9% 70.7% >30 306,763 354,766 392,152 357,670 430,914 4.2% m 20ake 23 (u Fp ig a u rle o n 8g )i.t u Cd oin ns al is tsen am t p 4l50 e, .21 % (w k) h ip ch ar rtem icipo an ve ts s itn h et hef eifrec fitf to ies f ph ar ad tic tip han e stm s al an lest d p ln an ets m en otve erm inen g an t ad w la eavi y frn og m t h ae 1d 0at 0 ab per as ce e. n t 5 equ Biac ty kgr poro tiu on nd fo orn T F Dac Fst was o4 rs .3 % In es ft lu ima entced u ing 4 si0 n1 g( t k) he Pl in an du Ac strc y oav un etr age Balan equ ces ity ................................ percentage for the assi ................................ gned TDF, which was ........ -0.1% 11 2023 N/A N/A 4.8% 3.9% N/A 7,860 Note: The consistent sam 50s -2.2%ple is 2.7 m 5 2019 .0 illion % 401(k) plan pa -1.3 62020 % 7rticipants with accou .5% 3.7% -1.0% 2021 nt balances 1.8% at the en 2022 d of each 0.5%year from 2023 2019 t 5.5% hrough ( 9B6ec .60s 0a u pse erR co et en f it rth ees?” ) es (F e ig c u h In ran eve g 6s es )t.m Al 3 in 8 en t .h t 8 2 h t % o 0 e Co u 1c g 9rm h o 3 s p m s 5an .o 7 se s % y tc tIn ag ios n ets i2t ,g d . u 5 c ra to % o e tu mpa ab Per pa s se r s sih 7 n p i.o g a ec n 2w % 2 ted ver 0 ive 1 9l a i8 tge t1 ,l e .n 3ac o % c.h c an 3 ou , n g an 1 te ba 0d .b 2 3 0 et % E lan 2 B w 3R cees Ien Is 2ac .s 4 yu % ear ro e ss B -r en di ief ff d 0 d, a .er 82 tn % a en 0 o b1 .a t 9 y 2 se 5 an ea 1 i1 n rd .( 1 -2 N en % y 0o 3 ear 2d .ve 5 3% * c- m ren o 6b ss 0er d .9 - % ) 2.0 23, 66.7% 4.2% 66.4% accou3 n-.t 4.4% 2 % balance for consistent participants P fo lallno w asse edt sa similar pattern and increased at a compound annual rose 179.1 percent (a 29.3 percent compo3 u.n 3% d annual average growth rate) between year-end 2019 an 65 d. 3year % -end3 2 .10 % 23 3.5% 29% 64.7% 3.9% 3.0% 2.7% 20s 63.7% 3.1% -10.0% 2023. Account balance 5 s a Allre participant ac Alco l unt bala8 nc 2es ,2 he 74 ld in 40 11(k 01,) p 62lan 6 s at th 12 e p 6 02 ,art 8 .5 7% icip 7 ants' 1 1 cu 3rre ,91 nt 1em 63.plo 0% 1 ye 48 rs ,0an 92 d are net of plan 3.0% 2.7% 2024 N/A N/A N/A 8,875 c Co c al on n cc u ten rlat ibted u urtat ioin o sis n n — g to t w h t he ar icM g het op r o ndisn at itgs ie v tel far u y L naf d ife sf:ec c 3 ytc 8 l4 .e7 0 A 1 p l( ler o k) cc at en pilo an tn o In ac f c de c oon xu es sn istt( en b see al t an M 40 c o1 es r( nk) — in gs ip nar t car lu ti 2 d cie 0 p 2 an b3 o). tts h ie nm th pei loryer fo r 2an t.i5 es % d h ead mp 1 lo0yee 0 p ercent of M A elld C iao nn tsi est nu e rn et:60s S a m p l e 7 yea 4.4 rs % - 1 . 2 % 6 years 3 . 2 % 2 . 5 % 1 . 2 4 .% 1 1 % 1 years 0 . 2 % 4 6. 6 ye % 2 a.r1 s% 39.8% 2.0% 40.4% 2.3% 5.7% 0.8% 7.0% 2.1% 0.8% 0.9% 72.4% sec Inves tion tm alen sntapsh retuortn s sc , an wh liea chd t var o f y alw se ith c o4 n0 c1 lu(si k) o n pslan . F oac r e cx oa umpl nt as e, n set ew al lylo fo cat rm io ed n, pl alan sos in wfo lu u1en ld t .7% cen e td ht eo pul chan l d go es w n in t h pe ar a tv icer ipa an ge ts’ participan Avail ts in ab th leei P at r a rs tw iic xw itp ies a w n. tib s c ec ii.n o a r tg h m e /e p ir d s sfli/ixg p th ier etsl0 y8 l-ess 03. p likel df an y td o w ow wn w s .eb om rie .o eq rg/ ud ito ies cs /o dv ef er au th lte -ss oa um rcp e/ leeb prer i1-.ii5s o % s du ( ed -b ec riref easin /110 g2 fib ro .p m d f. Changes in Consistent 401(k) Participants’ Asset Allocations .................................................................................... 1.7% 12 1. 5% Sourloans. ces aver a Retirem nd ag T eent y gp ro savings ew st of h rheld in at De atoa plans f 25.9 at previo percen us em t over ployers the or rolled period over into , to $5 IRA 8,8 s 9 are not 8 at year include -en d. See d 20 Figure 3 23. for additional 8 Source: ICI (F ta ig bu ulat reion 4s o ). f U Bec S au Depa sertm yo en u t o ng f L er ab p or ar Fo trm ici 55 pan 00t Re s’ ac searc coh F unile t balances tended to be smaller (Figures 3 and A3), their contributions 1 17 Initially, this group wa Note: A s dem ge and te ograph nure groups a ically similre based on ar to the participant ag entire EBRe and ten I/ICI 40 ure at year-end 1(k) databa 2023. T se at he year all - end 2019. However, by A target date fund typically reb All alances its portfo 4.4% lio to becom -1.2% e less focused 3.2% on growth an 1d m .9% ore focused o -15.4% 0n incom .7% e as it approa 5.1%ches and passes t ch oei ntrr iac bucto io un nst, in an ves d m ted os itn 4 t0 ar 1g (k) et p dar atte ic fip uan ndtss at ar e ye iar n - pen lan ds 2w 0h 1er 9,e co th m e pe ar m ed pl ow yer ith c3o8n.t 2r ip ber utc es. ent at In y2 ear 022 -en , m do 2 r0 e 2t3 h.an nine in -20.0% detail. account balance bu $500,000 t would tell us nothing about consistently participating workers. Similarly, the aggregate average account 9 ac 5c .0 o upner tsc.en Altt h at o uyear gh as -en set d 2 al0lo 1c 9at to io n 9 3var .8 ip ed er c w en ith t at ag year e, an -en d m d an 20y2 3 p) ar . ticipants held a range of investments, stock market 1 Although this approach misses some variation in individual TDF choice, the -18.1% error is unlikely to be significant. At year-end produced significant pcategory include ercentage grs participants with m owth in their ac issing tenure info count balancrm es. ation. A ccount balances are participant 25 the target date of the fund, which is usually included in the fund’s name. 23% *Data from TotaSo l co urc n the year-end 2023 te: ribT uab tioula ns tio inns clu fro dem EBRI b o EB thRI /I e CI /I m CI 401(k) database are p p lo Pa ye rtic r a ipa nd nt e -Dire mplo cte ye d R e relim co etin rem inary. trib en utt io Pla ns. n D ata Collection Project. year Fac -en tod rs 2 In 02 fl3 u,en thcese ing p Ch aran ticg ip es an itn s Co had ns g isrto en wtn 4 o0ld 1er (k) , ac Par crtu iced ipa ln otn sg ’ er As s jo et b Al ten lou cat res, ion an s ................................ d accumulated larger .................... account 12 Several EBRI and ICI members provided records on active participants in 401(k) plans for which they kept records. <$10,000 $10,000 to >$20,000 to >$30,000 to >$40,000 to >$50,000 to >$60,000 to >$70,000 to >$80,000 to >$90,000 to >$100,000 to >$200,000 1 0 participants wer $450,000 e in 401(k) plans where the employer made contributions (Figure A6). This figure was relatively Hold 2en, Sarah, and Jack VanDerhei. 2004. “Contribution24% Behavior of 401(k) Plan Participants During Bull and Bear balan •c e wo Yo uu ldn tg en er d t 4o 0 1 be p account balances (k) u lp led d artic o27% w ip n held in 401(k an if a tsl ar oge nu r t) plans at t hombe se w r he partici it of p h s ar m tipants' all cipa en r current em tye s re ar tir-e eployers and ar an ndd 2 ro 0l1 l o 9v er b e net of plan al th an eirce ac sc e ou xn pte ba rie lan nc ces ed t o h ig oth her er t ax- p2erformance tends to have an impact on these balances because, in large part, 401(k) plan participants’ balances Not all p< articipan $1,000ts are o $1,ffered 000 this inve $5,00stm 0 ent op $7,0 tion. 00 $10,000 >$20,000 >$30,000 >$40,000 >$50,000 >$60,000 >$70,000 >$80,000 >$90,000 >$100,000>$200,000 -30.0% 2018, 88 percent of TDF-holding participants in the EBRI/ICI database held a single, age-appropriate TDF (see Holden, $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $200,000 Total benefits disbursed include both benefits paid directly from trust funds and premium payments made by plans to insurance carriers. b At Note: T al year ances he consistent -en co dm 2p 0ar 23ed sam , s lw iple is 2.7 m gih th tl y p ar mtoiillion 401(k) plan pa c re ip an con tss iisnt en thte 4year rticipants with accou 01(k) -en pd ar 2 ti0 c2 ip 3an c nt balances rto s sh sad sec nto at the en io nn e. o At f d of each tyear heir -4 en 0year from 1 d( k) 20 b 1al 9 2019 throu ,an thce es m ied n gh 2023. ve ian sted p Participant ten ar in ti ctiar pan get t id nure at e These plan record $400,000 keepers include mutual fund companies, banks, insurance companies, and consulting firms. Although loans. Retirement savings held in plans at previous employers or rolled over into IRAs are not 3 unch 2017 anged during2018 the to longitudin to 2019 al study.to Regar 2020 din to g individu to 2021 al particto ipants 2022 ’ coto ntribution to 2023 activity, todefin 2024 ed c toontributito on to to Ch anges M inar C ket ons s.is ” tN en at t io 4n 0al 1( k) Tax Par As tis co ip can iattio s’n Al Pr looccat ee iodnin s gts o, E Nqin uet ities y-S ................................ ixth Annual Conferenc ................................ e on Taxation, Novem ............. ber Com 13pound –12 qualiDe fi GIe Cs are guarante d a te ccrom unini ts. ng ed investm a 4 ent contracts. 01(k) Participant’s Allocation to Equities tended to p e br ece wn eitg g ht red ow ttoh w in ar dacc eqo uiu tin es. t b Al atlan oget ce hs er c , o at m yea parre -en d w d i2 t0 h2 o 3,ld eq eru ip tiar est— iceq ipu ain ty t s f uo nrd t sh , o th se e eq wu itih ty lp ar or gte iorn y o efar - In A m co ou n nttr s as ex tcl , u th de e bav ener efag its e pa ac id c do ire uct nlty b bal y an insu cre ano ce f o ca ld rer rie rp s.ar ticipants, or those with longer tenures—both of whom tended to Vis tenu anDer re as of hei, a the ye nd Ba ar-end in ss 202dicated 1). . $350,000 Changes in zero allocation to equities included. Size of 401(k) Plan Account Balance 27% average annual f t t u h hn e e d 4c Eso B n tR h sI/ an isICI t en at t 4 year 0 sa 1m (k) -p en < le p $d r 5 w o ,2 0 jas ec 0 00 1 t4 9 5 h .< a An $ ye s7 ,ar c al 0o 0y s l0 lz ec o in l< d tg ed $, 1 tt0 h hd ,e 0 e at 0g s 0a ram o f$ u r2 o e p0 m ,a o 0 s f0 1 0 c i9 n o9 n t6 $ h s 3 ie ts 0 h t,en r en 0o 0u 0 tti g r4 e h0 $ d 1 4 2at 0 (0k) ,2 0 ab 0 3 p 0 ,as ar th e. t $e i5 c B 0 iu p ,y n 0 an 0 iyear v 0t er s,s $ 18 e t -6 h en 0 o e ,f0 d d 0 d at 2 0 at 0a a 2$ 3 sp 7 h ,0 r o o t ,h 0 w vid 0 e 0tm h er at ed s $ 8var 1 0 ian . ,0 10 i es p p 0er ar fr c t $o ien 9 cm 0 ip ,t0 a ,year 0 n o 0tn $ 100,000 $200,000 Equities include equity funds, company stock, the equity portion of target-date funds, and the equity porti 12 on of non-target-date balanced funds. ( DC) plan 1 5 p,ar 2t0ic 0i3 p,an Ch tsi ctag eno d: t4 o4 c –o 5n 3t.i n Wa ue sc ho in ng trtio bn u,t iD ng C: t o N at thie oin r al pl an Tas x iAs n an soy c iat giivoen n. year. The pattern of 401(k) plan 3 end 2019 balances. Three primary factors affect account balances: contributions, investment returns, and t har Source: T ave getl ar dat g abulations from er e fb ual nan ds,c e th s EBRI e ateq t/Ih u CI e it Participant-D y b eg poirntn ioin ng o irected Retir o f fn tohne –tsar tem ug dent Plan Data Collecti e y t p der atie o db al than anc ed yoon Project ufn ug ner ds ,wo an rker d s c o om r t ph an osye sw toitch k — sh o rep rter resen tenu ted res m —o s growth rate, rh eo wed 6 $300,000 Moved away Moved to Evidence of ReallocSource: T ation Ac abulations from tivity to or f EBRI rom/I CI Eq Participant-D uities Amo irected Retir ng Consiem sten ent Plan Data Collecti t 401(k) Particon Project. ipants ....................................13 This category includes interest, dividends, rent, net gains or losses on sale of assets, unrealized appreciation or depreciation of assets, 22 Acc 5ount balances are net of unpaid loan balances. t n in o et T tye ,h h e A m e ar sset allocation b c o I.n o ved In v nest s iad sto men ten d a itt i tz o s er C y age group n am o ,o mpa t p h tar le e g p n het y la an is am d I n d sa s at tu g ie t ong the co s ed u in ftu e g fn o ta d ru a rp al c nsistent sam ar ks year lot r c ic at eu s al i lo ar ( lo tnh c — p a e ple of 2.7 tr3 io lo en 3 vid n. 6 g o er tf a p her m c o cillion 401(k) plan pa an c c f o en tu im c n th te o ba an ff o tg lh r an e is to h c g es v erer o a lrticipants with accou ou n n tp id g m ih t c e. ad u hd an R in n ec ge al o o s ian n rtd ves os al t nt balances w y h ts m e er isass en e ), en tw e st h c a in at the en irllypt e lto ar tch at ed g e et io d of each m tn o d ed o at cf o ie an nc f year u eal nd s th at e Each 401(k) participant’s allocation to equities is calculated as the sum of: 2019–2023 account balance growth rates from year to year also reflects the stock market per 13 formance. Between year-end 2019 $250,000 Zero in from Remained at zero Net Zero in25% Size of 401(k) plan account balance and otherw in it co hd mreaw anal d ean xpd en lse oan s. Tac het ibvit ulk y. o fT th hie s ca per tec gen ory t is ch nan et ig nv e est inm aver ent ga ag ine s o 4r0 l1 osse (k) s. plan account balance of participants in t m ho an re 7m 0 opder es cten pt er ocfen co tag nsie s tg en rotw 4t0 h1 i(n k) ac pc lan ou n ptar st iz ic ei p(an Fig ts u’r e as 4 s)et . s F o (r F iex guam resp 5 le, an th de A aver 4). ag e account balance of 401(k) 24% from 2019 through 2023. 26 *Data from the year-end 2023 EBRI/ICI 401(k) database are preliminary. Ch p year 7 co ar n an ttir-c ig en bu ip es an d ti o i2 n tn 0 fs C o 1fo r 9 o n r tan a h sie s d sa ten en 3 mpl 4 tti .r4 7 e e 0p d 1 oer at ( f r k) c ab ec en Par o as tr dkee e h tiad c w ip as pe an no 4 rt s. s i4 n ’ Th ve year Als le o tm c su sat en o rivey o ld tn s ( s r F i n tie o g su t u ar Trlar te g s et g A1 in et di d ) .at c Dat a Se tie m feu a ilF n ar m u dln s iy, n dat osw r ................................ ityear h yi o lef D t-h en C e p d m l2 an ed 02 ipar an 3 ( tF tien c ig ipan u urre ............................. e t s 8 in ) c .h tT h an e hge is en n ttet h irei e c rh aan sse g15 t e Ho iden ldten ity , o Sfar eah mp , lJ oac yer k sVa an nd D er em hei pl,o 2019 yees and S , tb even utze w r er o B as b ey c s 2o . 0d 2 2ed 0 32 1s.o “ T tze har at rg o et bo tDat h ce o u b Flyu d 2 n b 0 de 2s3:t rE ac vid ked en ch c o aever n g Po e im ntu sl ttio p le G 2023 ryear owin sg . P F oo pru le ar ac ith y and 401(k) plan accA og u $200,000 ent balances ten24% d to increase with both age and tenure among the consistent group of participants, as an Td h iye s nar umb -ener d i2 s 0l2 o3 w er (ex th can ep i t tf w oro d uu ld ha ringve 20been 22), itf hie t me USr s elty oc rk ef m lec ar ted ket e m gen plo er ye al e ly turronsoeve (F r a ign ud rer et A7 ir) e,men whitc . F h o ten r ed xs am to p lp er , i ofvid 40e1 ( a k) 4 *Data from the year-end 2023 EBRI/ICI 401(k) database are preliminary. Note: Fu thnds inclu eir twen de m ties utual f waunds, s heavil bank co y in llective t fluencrusts, life ed by t insuran he relat ce sepa ive srate acc ize of ounts, their and a cont ny poo ributiled inve ons to stm th ent pro eir ac duct p coun rim t arily invest balances ed in and Note: T phe ar c tion cip sian stent ts s iam n pl th e ei isr 2. s7 ix m tiies llion i n 40 c1(k reased ) plan pa 56 rti.c8 ipa pnt er sc wen itht a c (c an ou nt 1 1 ba .9 lan p cer esc at en thte c en od m of p e oac un h d y ea an r fro num al 20 aver 19 thro agug e h g20 ro23 wt . h Ac r cat oue) nt ba bet lanw ces ee are n Estimates through 2022 are based on the Department of Labor Form 5500 Research File. • Compan $150,000 y stock. The percentage of their 401(k) account balance invested in the stock of their employer. d al ref at lolab ec cattas iso n e 3 i .w 2 n a as per n y sc 20s i x gi en ven ye t ar m per o s vin at io g b d. o f F r to h om rye 1 .ex 4 zar % er a-mp o en tlar d e ,g 2 8 0 et .1 0 - 9 0 dpe . at 5 an % re cd en f u ye tn o d ar f D o -e w C n 0n . pl d 9 er % 2 an s0 h2 p ip 3ar ,t o ttih cat e ipan 0 m l.e 4ed % as ts itc an h san o tm en ge, ed u -r4 0t e ..h 1 3fe % op ass rer th c ee en t al cto lo m n 1 cs .o a 3 is vin t% ito en n g t o fp f t ro an h m ei el s r a o ro m cs ce e o u tfo r no t m participan Ap Note: T t, pd rat op he consistent a riiat nc e luU dsee d sam bat y e 4 ple is 2.7 m 0 o1 f (b k) ir tPl h,an illion 401(k) plan pa fr o Par m tw ich ip ican h tan s.rticipants with accou ” ag ICI e g Rrese oupar is c ha s Per nt balances sigs np ed ec;t id ve at the en at e 2 7o,f n d of each hoir.e, 7 ,f r an o year from m d E wBhR ic 2019 throu Ih I s a su ten e B ugh 2023. r rie e fr,an no g A .e ccount balan 5is 3 7 ces are participant account 1 they do in the cross-sectional EBRI/ICI 401(k) database. Younger participants or those with shorter job tenures at their particip pl aan nt a the security indicated. A c sp coo un ns t o ba rls a c nch ean s hge eld t inh ge group is based on the participant' 4 e0 ir 1 s (ke ) r pvi lac ne s pr at th oe v ip de arti rs c, ip a an llts pa ' cu rt rre s age at year-end 2023. Percentages are dollar-weighted averages. icn ipan t emtps loiyn e t rsh ao nse d apl re a nn et s ow f po la unld be loans e . Ret xcliu rede med fr nt so am vingts h e hec ldo in nsi pls atnen s att s pa remp viou le s. e mployers b T o ho e sas t ts oet 4 0 al 1lo (k) cat pio lan n oac f p co ar utn ictisp an hotld s in ing teq heu citoies. nsisO ten n ta ver sam ag ple, e var moired e tw han ith 70 par p tier cic pen antt o ag f e, th ea c 11 p oat ns ter istn en tth at sa m alp so le is o fo 4 b0 ser 1(v ked ) Indexes are set to No Etvid e: D 100 in Decem en ata ce exo cl fu R de eal ber 2019. pla lo nc s at co io ve nr iAc ng toivit nly y on te o po arr tfici ro pm an tT . arget Date Funds Among Consis 21% tent 401(k) Participants.....................15 increased at a compound average growth rate of 56.1 percent per year between year-end 2019 and year-end year-end 2019 and year-end 2023). Investment returns, rather than annual contributions, generally account for most balances held i $100,000 n 401(k) plans at the participants' current employers and ar 9 e net of plan loans. Retirement savings held in plans at previous employers or rolled over into IRAs are not or rolled over into IRAs are not included. See Figure A8 for additional detail. 30s 1.7% -0.5% 1.2% 0.5% 0.0% 1.7% balances, and 4.0 percent changed the asset allocation of their contributions in 2022 (see Holden, Schrass, and Chism 2023). s z as er even so ig Source: T , nan ed year d (; S 3 o ep s0 abulations from u t .tt4 o sem t p an 1er 1bd er c year ien n)g . t Avail ls EBRI o w an oitvh er ab /I b z CI al er tl Participant-D e h an o e at c h se; a o w m l d w fu e iw nn g p .d irected Retir is er c s i i.in io o n r d b g t o h ( /tF feh i14 i lg es/ p em 2 u ar 0 rent Plan Data Collecti 2 e 1 ti0 9 cA2 2 i p an 1a )/.n p dt er ’2 s0 2i7 2 n3 - ves 0 . 7.tp m on Project den f an t p do w rtfw ow lio .eb s; ran i.odr gas /dso et cs valu /defe au s lat t-s troib uu rcte/ edeb to r i- 2 N/A = not available current employers tended to have smaller account balances, while those who were older or had longer job tenures ip nar th tie cip can ros ts s’- sac eccto io un nal t b Eal Ban RI/ cICI es w 4er 01e (k) in vdest atab eda isne. eq u Yo itiu es n g (er Fig p uar res tic 5 ip an antds A4 gen ). erally tended to be more invested in equity The S&P 50 Source 8: T 0 index abulati m on easures the p included s from EBRI/I . erform CI Paance of 50 rticipant-Dir 0 stocks chosen ected Retireme for m nt Pla arket siz n Data Col e, liquidity, and lection Proje industry group ct. representation. 16% 2023. $50,000 14% of the change in accounts with larger balances. For the report on the year-end 2019 EBRI/ICI 401(k) database, see Holden, Bass, and Copeland 2022. Ab •o ut E th qe u iE tB yR fI/ un ICI ds 4 . 0T1h(e k)p Dat ercen abtas ag ee ................................ of their 401(k) accou................................ nt balance invested in................................ equity funds. ..................16 40s 2.11% 7% -0.6% 2.1% 0.8% 0.2% 2.9% 27 Sources: Investment Company Institute and Department of Labor 20s 30s 10 40s 50s 60s All 3 t hose fun isdssu. eAn -b rac iefc /o eb un rit_ ib bal _5 an 37 ce _4 fo 0r 1 kt eac dfh s- p 9ar sep tic 2i1 p.an pdtf .i s the sum of the participant’s assets in all funds. Plan balances 23 The ICE BofA ten US Corporate I ded to have ndex hig tracks the pe her accourform nt bance of inve alances. stm Fo ent grade co r examplrporate debt e, within that is pub the cons licly issued in the US d istent gr 4% oup, amo om nestic m g 401arket and de (k) particnom ipan inated in US d ts with ollars. funds and Source: T target abulations from date f $0 unds, EBRI whil/Ie CIo Participant-D lder particirected Retir ipants wer em eent Plan Data Collecti more likely to in on Project vest in fixed-income securities such as bond For a detailed analysis of 401(k) plan participants’ use of target date funds by participant age or job tenure in the year-end 50s 3.7% -0.7% 3.0% 1.2% 0.5% 4.2% Consistent 401(k) participants in all age groups moved, on net, away from target date fund ownership between year- 9 401(k) Plan Participant 2019 s Can Accum 2020 ulate Siz 2021 able Account 2022 Balance 2023 s Wi TS ten h od u urr raw e ces ral efer an s an s d td T o ype b yea orsr r o s ow at f iDat n tg h e raed c ................................ uu rrcen e t4 0 emp 1(k) lo ye plan r a n ac d i cs o................................ u gen nt er bal alan ly c de es riv in ed f thr e om EB ................................ d Rat I/e ICI of hi 40r1 e (k) rep d oat rted ab fo as ................................ e, r t h w e hpar ile tlo ican ipan t. Tenu16 re Sources: LSEG Data & A are constru nalytics, Federal cted as the s Reserve Bank of St. Louis, um of all partici4 p0an 1(k t Standard & Poor' )b pal laan n p ca es rtic in ip t ah s, and I ne t a p glan e CE Data I . ndices more than 5 to 10 years of tenure at year-end 2023, older participants tended to have higher balances than younger fund • s , m4 o0 ney 1( k fu )n p dar s, to ic r ip gC u a o ar n nt an ss is tt teed e en ntd is n t ave o m co s ptlm en en ice n tn c to rn at E tr B e ac R tIth /s Ie C (ir IG 4 ICs acco 01()k an )un d to sC t h in o er n e ss q is tu ab te it n ly e t s s valu a em cu e pr le fit u iin n ed ss.. On E B aver RI/Iag CI e, 40 at 1( kyear ) -end 2022 cross-sectional EBRI/ICI 401(k) database, see Holden, Bass, and Copeland 2024. Among 401(k) plan participants holding • Equity portion of TDFs. The percentage of their 401(k) account balance estimated to be invested in 60s 5.0% -0.7% 4.3% 1.9% 1.2% 6.2% end 2019 and year Note: A -endge and te 2023, nure groups a with particre based on ipants in participant ag their sixties e and ten havinure at year-end g the largest 2023. T net m he oal vem l category ent. For example, ICE BofA US Corporate Index. Atlanta: ICE Data Indices, LLC. will not reflect the years of participat 20i1 o9 n in the 401(kd ) a pl ta an ba is f e th ie n 4 20 01 1( 9k) plan was add 202 ed 3 by the empld oa yer tab aa ts a e lia n t er 20 da 23t*e or if repayment has a positive impact. Withdrawal activity among active DC plan participants is relatively rare. Typically, participants: those in their forties with more than 5 to 10 years of tenure had an average account bal21 ance of $89,673, 2023, more than 70 percent of consistent 401(k) participants’ assets were invested in equities—through equity target date funds Allat year-end 20138 ., 6 % 88 percent- h 0.7 el % d one age2 -appr .9% opriate t1 a.r1ge %t date fun 0d .4( % see Holden 4,. V 0% anDerhei, and Bass Investment Options...........................................................................................................................................16 equities ( includes based participa on the nts with indusm trissing te y avernure inf age as orm set ation. allo Ac ccount ationbalance for ths are pa e TDFrticipant approaccoun priate t balan to th ces held eir age in ) through 3 T5 ren .3 dpser in c en Note: E thte ocfo quities c no sn isstien include sten t gtr 4 o equity 0 u1 p( ’s k) funds, ac pc ar o com u tin citp pany st b an altan s ock, th ic nes th h ei e equ ig r h sliity portio ix gth ies t th h n of t e ad ac h arget d cel ud m n u ate fu o lat tiar o nds, a n g et ef fnd the d ec at t e o equity ffu onndgs portion o at in gyear 4 of no 01-(en n–targe k)d p 2 ar 0 t date t1 ic 9i,p at coim on p. ared t Ih nv ere es ar te ment restri cO tio pn ts ion ons pa rticipating in the 401(k) plan immediately upon hire. f Few inal er ly, thlo an an 5 o p r er wciten hdtr aw of ac al tac ive ti vit DC ies p lan can p h ar ave tici p an an itm s p ta ac ke t o an n y 4w 01 it(h k) d rp alw an al ac inc a o u gn iv t en bal yan ear ces. , w iAl tht h few oug er h tin h an gen 2er pal er,c en ver ty few compM areed dia n w a itgh e Note: E :an 401(k) plans aver quities ag e include at the partic of $9 4 equity 9 5, ye 60 ipants' a4 funds, rs f o r current em com p ar t pany st ic i p ployers and ar an ock, th t s 4 i5n e equ ye th aei rs e net of plan loans ity portio r s i x t i es n of t w arget d i t h m . Retirem o ate fu r 4e 9 t ye nds, a h ent savings hel an ars 5 nd the t o 1 equity 0 d in plans at year portion s o f4 of 4 ten yeu ar rs e (Figures 3 2021). funds, the equity portion of target date funds, the equity portion of non–target date balanced funds, or TDFs. balanced funds. A target date fund typically rebalances its portfolio to become less focused on growth and more focused on income Internal Revenue Service, Statistics of Income Division. 2021. SOI Tax Stats: Individual Information Return Form W-2 References ...........................................................................................................................................................25 with 37.0 percent at year-end 19 2023 (Figure 8). Am 15 ong participants in their twenties, 24.1 percent held no target date The consistent non–target date balanc saprevious em mple’s avployers or erage ed funds. Funds i an rolled ov d med er into I ian 4 nclude m RA 01 s are not inc (k) utual funds, bank c plan ac luded. See Figur count bollectiv alan e A ce trusts, l es 3 for additio werife insur e hnal detail. ighance separate acc er than in the ounts, cross-sectional 28 t ac akin tive g 4 h0 ar 1d (k) sh ip pl an wi tp har drtaw icip al an s.ts Dat take a w frio th m d rtaw he al Es B,RI/ p ICI art i4 c0 ip1an (k) ts d iat n ab thei as r es iix ntd ies icat ten e td h at to 1 h5 ave per ac en hig t hoer f 4p0r1 o(pk) en p slian ty to make 10 and A3). cA o as it approac m mo pn an g y co sn thes and passes the t o sc is k. ten Yo t u pn ar gter ic ip 4an 0 arget date of the fund, 1t(s k) i np ar thtei icri p san ixttie s which is st en at dy ear t usually i o h -en ave d ncluded in the fund’ h 2i0 g2 h3 er , tc ho on sc e en ws nam titrh at m io e. Funds incl n os re i n t heq anu ude m 5 it ies to utual funds, 1 th 0an year old ser o f4 t0 en 1(u k) re In the EBRI/ICI 401(k) database, investment options are grouped into eight broad categories. The cross-sectional EBRI/ICI 401(k) database also shows that younger participants and those with shorter tenures tend to 24 Statistiand any pooled inves cs. Available at w tmw ent product pri w.irs.gov/m st arily i atisnvested in the s tics/soi-tax-s ecurity i tats-in ndicated. T dividualhe consistent s -information am -rple is 2.7 m eturn-for illion m-w2-statistics. See note 22. funds at year-end 2019, compared with 24 16.6 percent at year-end 2023. year-end EBRI/ICSource: T I 401(k) abulations from database ( EBRI Figu/IrCI es Participant-D 1 and A8irected Retir ). At yearem -en ent Plan Data Collecti d 2023, 20.1 per on Project cent of the consistent group had bank collective trusts, life insurance separate accounts, and any pooled investment product primarily invested in the security N p war o itth tes id cr i p aw ................................ anal tss ia ns ptlh an ey s ap offp er ro in ac g................................ hlo ran etisr e hm ad en lo t.an s outst................................ anding at year-end 20................................ 22, with the youngest................................ and oldest—those in ..26 had • a low Eer qu aver ity p ag oe rt 4 io 0n 1 (o k) f n plo an n – btal ar an gc ee t ( d$ at 99 e, 6 b0al 4)an thce and t h fu on se d s w.i tT hh m e o prer e cten han tag 3e 0 o yfear ths ei o r f4 t0en 1(u k) re ac ($ c4 o3 u0 n,t9 b 1al 4). an ce particip 401(k) plan ants. participants with account balances at the end of each year from 2019 through 2023. Age group is based h *Data from ave low the year-end 2023 er 401(k) balan EBRI ces t/Ih CI an 401(k) database are p those who are orelim lderinary. or have longer tenures. See Holden, Bass, and Copeland 2024. indicated. The consistent sample is 2.7 million 401(k) plan participants with account balances at the end of each year from 2019 more than $200,000 in their 401(k) plan accounts at their current employers, while another 15.9 percent had between 25 on the participant's age at year-end 2023. • Equity funds consist of pooled investments primarily invested in stocks, including equity mutual funds, bank th ei Fo r rt t w hen e cto ies mp (l6 et p e er up cdat ente ) fan rod m stih xe ties yea (r1-2 en pd 2 erc0en 22t E )— BR less I/IC lI ike 40 ly 1(tk o) d ha at ve abase loan , ssee outH so tan lden din , B g as ths, an an th d oC so epe inl an thd ei 2 r 0 th 24 ir.t ies, estimated to be invested in equities (based on industry average asset allocation) through these balanced through 2023. Age group is based on the participant's age at year-end 2023. In Note: T vesthe consistent ment Com sam pan ple is 2.7 m y Instituillion 401(k) plan pa te. Quarterly Su rticipants with accou pplementary Dat nt balances a. Wasat the en hington d of each , DC: In year from vestm 2019 throu ent Comp gh 2023. any In Participant ag stitute. e is 11 Contribution am 20 ounts and contribution rates tend to increase with age and earnings. See Figures A3 and A4 in Brady and $ 100,000 and $ Source: T 200,000 abulations from . In contras EBRI t, in /I CI th Participant-D e broaderirected Retir EBRI/ICI em 40 ent Plan Data Collecti 1(k) database, 9 on Project .8 percent had accounts with more age as of the year • c ollec Cto ive ns-end indicat is tru te stn st , l4 if0 ed. e 1 in (s ku )r an par ce tic sep ipa ar nat ts e ’ ac ex cp oo us nu tsr,e an to d e oq th uer it ip eo so w led a sin rves elat tm iv en ely ts .u nchanged between year-end forties, or fifties. In the database, a participant’s account balance is reduced in the year that the loan is originated, Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project funds. 26 The EBRI/ICI 401(k) database environment is certified to be fully compliant with the ISO-27002 Information Security Audit Bass 2021 or data tables in Internal Revenue Service, Statistics of Income Division 2021. tSource: T han $20 abulations from 0,000, and EBRI 8.2 /Ip CI er Participant-D cent had irected Retir between em $1ent Plan Data Collecti 00,000 and $200 on Project ,000. 2019 and year-end 2023. At year-end 2019, 96.4 percent of consistent 401(k) plan participants held some but repayment of the loan in the ensuing years contributes to account growth. standard. Moreover, EBRI has obtained a legal opinion that the methodology used meets the privacy standards of the Gramm- e e e e e e e e e e e e e e e e e e e e e e e e e e eb b b b b b b b b b b b b b b b b b b b b b b b b b br r r r r r r r r r r r r r r r r r r r r r r r r r riiiiiiiiiiiiiiiiiiiiiiiiiii...........................o o o o o o o o o o o o o o o o o o o o o o o o o o or r r r r r r r r r r r r r r r r r r r r r r r r r rg g g g g g g g g g g g g g g g g g g g g g g g g g g IIIIIIIIIIIIIIIIIIIIIIIIIIIs s s s s s s s s s s s s s s s s s s s s s s s s s ss s s s s s s s s s s s s s s s s s s s s s s s s s su u u u u u u u u u u u u u u u u u u u u u u u u u ue e e e e e e e e e e e e e e e e e e e e e e e e e e B B B B B B B B B B B B B B B B B B B B B B B B B B Bri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri ri riA e e e e e e e e e e e e e e e e e e e e e e e e e e efffffffffffffffffffffffffff re • • • • • • • • • • • • • • • • • • • • • • • • • • • s e Au Au Au Au Au Au Au Au Au Au Au Au Au Au Au Au Au Au Au Au Au Au Au Au Au Au Au arc g g g g g g g g g g g g g g g g g g g g g g g g g g gu u u u u u u u u u u u u u u u u u u u u u u u u u u hs s s s s s s s s s s s s s s s s s s s s s s s s s s re ttttttttttttttttttttttttttt 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 po,,,,,,,,,,,,,,,,,,,,,,,,,,,rt 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 fr2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 o5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 m • • • • • • • • • • • • • • • • • • • • • • • • • • • th N N N N N N N N N N N N N N N N N N N N N N N N N N N eo o o o o o o o o o o o o o o o o o o o o o o o o o o E ........................... BR 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 64 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 41 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I Education and Research Fund © 2025 Employee Benefit Research Institute 24 20 26 25 17 13 16 15 23 21 10 12 18 11 14 19 28 27 22 4 3 8 2 6 7 5 9

What Does Consistent Participation in 401(k) Plans Generate? Changes in 401(k) Plan Account Balances and Asset Allocations, 2019–2023

What Does Consistent Participation in 401(k) Plans Generate? Changes in 401(k) Plan Account Balances and Asset Allocations, 2019–2023