Shifting trends in investments – and the long-term fears that retirement savers have developed after being burned by the stock market in past years – have led to a significant growth in target-date funds in America's 401(k) accounts, among other diversification measures.
According to 401(k) Plan Asset Allocation, Account Balances and Loan Activity in 2011, a joint study created by the Employee Benefit Research Institute and the Investment Company Institute, nearly three quarters of 401(k) plans offer TDFs as a part of their investment options by the end of 2011, up from 57 percent back in 2006.
And while 61 percent of 401(k) participants' assets were, at the end of 2011, invested in equity securities and 34 percent in fixed-income securities, the percentage of participants taking part in TDFs is on the rise. Stock investments do, however, still form the largest percentage of 401(k) investments nationally.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
