Equities Widen Their Lead
Retirement participants of all ages are investing more of their retirement plan money in equities, reflecting the long-term horizon of retirement savings. If balanced and asset allocation as well as sector investments are included, it is estimated this allocation increases to two-thirds of an account holders balance.
Asset Allocation of Retirement Accounts
By Age
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Overall, equities make up 40% of the balances of those participants surveyed, with younger participants allocating slightly over half of their balances to equities. While the average stands at 40%, it is estimated that 20% of younger participants do not hold any equities within their respective accounts. Recent provisions included within The Pension Protection Act (PPA) include options, i.e. lifestyle funds, which will provide equity exposure to those participants that do not choose an investment option. This is an effort by the PPA to improve selection in the default investment option. >> Read more articles
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