More than 7% of 401(k) assets were invested in lifecycle funds at the end of 2007.
Researchers at the Employee Benefit Research Institute, Washington, and the Investment Company Institute, Washington, have published that figure in a new retirement asset investment review.
Lifecycle funds, also called “target-date” funds, are designed to serve the needs of individuals expecting to retire around a designated date.
The mix of assets in the funds is supposed to become more conservative as the target date of the fund approaches.
Here are some survey findings:
- About 25% of 401(k) participants were using lifecycle funds at the end of 2007.