Additional key metrics from the fourth quarter 2011 and full year include:

More participants benefited from employer contributions: 82 percent of active participants received employer contributions—typically a company match or profit sharing—during 2011, up from 79 percent in 2010. Seventy-five percent of employers made contributions to eligible participants last year, averaging $3,270, up from $3,170 the year before.
Target date funds helped drive improved diversification and asset allocation: One-in-four participants invested 100 percent of their 401(k) assets in this option, with nearly half of participants age 35 or younger investing all their plan assets in the option. Diversified, age-based target date funds, such as Fidelity Freedom Funds, remain extremely popular with 98 percent of plans now offering such options. Of participants who were in a plan for 10 years and took on more risk in their investment portfolio than their applicable age-based Freedom Fund, 62 percent underperformed the Fund over the time period.
Very few participants made exchanges last year: Only one in 10 participants made an exchange — the transfer of money from one investment option to another—during a year of significant market volatility, down from 15 percent in 2006. Much of the reduction in exchanges may be attributed to the increased use of target date funds and an appreciation of a long-term, steady approach to retirement saving. Over the past few quarters, when investors made exchanges, more assets moved out of equities toward conservative holdings such as short term, stable value and fixed income options.

Fidelity Investments provides financial services, with assets under administration of $3.4 trillion, including managed assets of $1.5 trillion, as of Dec. 31, 2011.

Instant Insights /

Investment savings rose slightly in 2011

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