New data indicates that target-date funds are used by roughly 55% of the participants in 401(k) plans at Vanguard, referencing a growing attraction to balanced investment options that automatically cuts down risk with age.

With more than 4,000 defined contribution plans and over 3.5 million participants under the Vanguard umbrella, new information notes that target-date fund attraction among half of the 401(k) participants is likely due to large take-up among retirement plan sponsors. Approximately 86% of the 401(k) and DC plans at the Valley Forge, Pa.-based investment management company currently offer these vehicles.

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