Trends in retirement plan contributions and asset allocations by TIAA participants : 2012 to 2018

This paper examines how workers allocated their contributions and assets in their employer-sponsored retirement savings plans within the TIAA system over the 2012 to 2018 period. Consistent with previous research, we find that Lifecycle funds, an auto-diversified target-date fund with an age-based glide path, are used by an increasing share of participants. Younger participants, who are more likely to have defaulted into the Lifecycle fund, tend to use it as a single comprehensive fund-of-funds investment. Older participants who invest in a Lifecycle fund tend to use it as part of a broader portfolio strategy. As with previous studies, we find older workers, participants with longer TIAA system tenure, and higher asset participants are more likely to customize their investment portfolio across multiple asset classes and investment products.Overall, we find the current investment menu provides a strong set of options capable of meeting the needs of a diverse workforce