08.14.25

American 401(k)s Are More Tied to Stocks Than Ever

by: Anne Tergesen; Hannah Lang

U.S. retirement investors are leaning more heavily into equities, propelled by target-date funds that have steadily raised stock allocations. Alight Solutions reported just 1.3% of 401(k) balances were traded this year, showing most investors stayed the course despite volatility. Target-date funds, which now capture 64% of 401(k) contributions, have shifted equity exposure higher — averaging 55% for savers five years from retirement, up from 40% a decade ago.

Read the full article on The Wall Street Journal