Employees who are automatically enrolled in target-date funds when they are signed up for a 401(k) plan are very likely to stick with the target date investment strategy for the long haul, according to a study conducted by the Employee Benefit Research Institute (EBRI).
Using it’s database of some 20 million participants in some 50,000 employer-offered 401(k) plans, EBRI found that among plan participants who were identified as auto-enrollees in 2007, 97.2% who had been placed into target date funds were still enrolled in target date funds a year later and the fall off by 2009 -- a period in which many investors were cashing out of stocks and bonds -- still only lowered the percentage staying in target date funds to 95.7%.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access