Participants with a 401(k) plan who invest in target-date funds (TDFs) tend to stick with these investments over time.
According to a report released Tuesday from the Employee Benefit Research Institute, more than 90 percent of 401(k) participants investing in TDFs in 2007 stuck with them through 2009. Those identified as "auto-enrollees" were more likely to have stayed with TDFs, at a rate of more than 95 percent.
Participants who are younger and those who have lower account balances are more likely to use TDFs, and to continue to use them.
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