Account balances are affected by participant age and job tenure. Younger participants tend to favor equity funds while older participants are more likely to invest in GICs and bond funds.
Asset allocation varies with salary.
The percentage of account balance invested in equity funds rises as salary increases. Investment options influence asset allocation. Participants in plans with company stock as an investment option tend to reduce their allocation to balanced and equity funds while those in plans with GICs lower allocations to equity, bond, and money funds. Moreover, participants in plans in which employer contributions are made in company stock appear to decrease allocations to equity funds and increase the allocation to company stock in self-directed balances. Among participants eligible for loans, only 18 percent had loans outstanding at year-end 1999.