More than one-third of participants in Vanguard 401(k) plans invested in a professionally managed account in 2012, the company said Tuesday.
According to Vanguard’s latest report on its customers’ habits, “How America Saves 2013,” 27 percent of all participants in its plans were invested in a single target-date fund in 2012. Another 6 percent held a single traditional balanced fund, and 3 percent used a managed account advisory program.
The number of individuals who chose a professionally managed option more than doubled to 17 percent since 2007. Also, more participants took advantage of investment advice offered by Vanguard in 2012, rising to 14 percent.
Account balances, although not the primary indicator of retirement readiness, rose by 10 percent to $86,212 in 2012. The increase reflected ongoing contributions and a robust stock market.