One-quarter of 401(k) participants have money invested in a lifecycle fund, but, on average, only 7% of DC plan assets are invested in such funds, according to a joint report from the Employee Benefit Research Institute and Investment Company Institute.

Lifecycle and balanced funds are also popular among new or recent hires, with 28% of recently hired people in their twenties invested in balanced funds at the end of 2007, compared with 24% in 2006, 19% in 2005 and 7% in 1998. Also, at the end of last year, 19% of the account balances of recently hired people in their twenties was invested in lifecycle funds, compared with 16% at the end of 2006.

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