The EBRI/ICI database, a joint project of the two organizations since 1996, has measured 401(k) plan asset allocation, account balances, and loan activity over time. This year, for the first time, the two organizations are reporting on lifecycle funds, which are now more than a decade old. The key findings for year-end 2007:
Assets in lifecycle funds represent 7.4 percent of total 401(k) assets in the database.
Of all 401(k) participants in the database, 25.1 percent were invested in lifecycle funds.
The full report, being published jointly by the two organizations, entitled “401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2007″ also finds that across all age groups, more new or recent hires invested their 401(k) assets in balanced funds, including lifecycle funds. At year-end 2007, 28 percent of the account balances of recently hired participants in their twenties were invested in balanced funds, compared with 24 percent in 2006, 19 percent in 2005, and about 7 percent in 1998. At year-end 2007, almost 19 percent of the account balances of recently hired participants in their twenties were invested in lifecycle funds compared with 16 percent at year-end 2006.