Approximately 37% of investors are participating in target-date funds when their employer offers one, according to the
That percentage is likely to grow as more employers automatically enroll new employees into these plans, EBRI said. Target-date funds held about 7% of total 401(k) plan assets in 2007.
"Younger workers are significantly more likely to invest in target-date funds than older workers," the study said, noting that "almost 44% of participants under age 30 had assets in a target-date fund, compared with 27% of those 60 or older."
Most investors in target-date funds have low incomes, few assets and little time on the job.
