|PR Newswire Association LLC|
Since the financial crisis of 2008, on average, more than 20% of retirement assets have been invested in stable value investments and half of all participants across
"Gen Y has not experienced a positive market cycle during their professional careers, and Baby Boomers just watched a good portion of their retirement erode in rough market conditions," said
The reliance on stable value is not attributed solely to an aging population that wants to shelter their retirement savings from the marketplace. Instead, significant stable value usage spans all age ranges. On average, Baby Boomers – participants between 49 and 66 years of age – allocate 22% of their assets in stable value, compared with 12% for Gen X participants – those between 33 and 48 years – and 10% for Gen Y – those between 23 and 32 years.
Moreover, half of all participants invested at least a portion of their defined contribution balances to stable value in 2011, according to the analysis. Baby boomers logically had the highest rates of stable value use, at 58%, followed by Gen X at 46% and Gen Y at 32%. The data is significant, given that participants are not automatically defaulted into a stable value investment, but must proactively place assets there.
Plan sponsors and advisors have noted this trend as well and many are scrutinizing their current stable value investment choice.
"A principal preservation asset class was once an afterthought for most sponsors and advisors, with a recordkeeper's proprietary solution being an easy choice," said
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"New York Life Investments" is a service mark used by
 Source: Pensions & Investments,
SOURCE New York Life Retirement Plan Services</p>