Does age affect a participant’s asset allocation?
The asset allocation of participant account balances varies considerably with the age of the 401(k) participant. Younger participants tend to concentrate their assets in equity funds, while older participants tend to invest more in fixed-income securities, such as GICs and bond funds. At year-end 2007, participants in their twenties had invested nearly half of their account balances in equity funds, while those in their sixties held nearly 39 percent in equity funds.
