TY  - UNPD
A1  - Mitchell, Olivia S.
A1  - Utkus, Stephen P.
T1  - Target date funds and portfolio choice in 401(k) plans
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 662
N2  - Target date funds in corporate retirement plans grew from $5B in 2000 to $734B in 2018, partly because federal regulation sanctioned these as default investments in automatic enrollment plans. We show that adopters delegated pension investment decisions to fund managers selected by plan sponsors. Including these funds in retirement saving menus raised equity shares, boosted bond exposures, curtailed cash/company stock holdings, and reduced idiosyncratic risk. The adoption of low-cost target date funds may enhance retirement wealth by as much as 50 percent over a 30-year horizon.
T3  - CFS working paper series - 662 
KW  - automatic enrollment
KW  - pension
KW  - portfolio allocation
KW  - endorsement effect
KW  - default effect
Y1  - 2021
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/62404
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-624047
UR  - https://ssrn.com/abstract=3965695
N1  - This research is part of the NBER programs on Aging and Labor Studies and the Household Finance Working Group, and it was undertaken pursuant to a grant from the US Social Security Administration (SSA) to the Michigan Retirement Research Center (MRRC). This research support is gratefully acknowledged along with that of the Pension Research Council and Boettner Center at The Wharton School of the University of Pennsylvania, and Vanguard.
IS  - May 2021
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -