The Total View - (Page 29) Lifecycle/Lifestyle Investment Options & Managed Accounts Use of lifecycle/lifestyle investment options continued to grow dramatically in 2006, with approximately 80% of plans sponsors offering them in their investment line-up – this number is more than double from 2004. Because employees want help in choosing investment options, the popularity of lifecycle and lifestyle investment options continues to swell. At The Principal, just under 4,000 plan sponsors added lifecycle/lifestyle investment options in their retirement plan in 2006. 32.9% 11.3% 1.1% Principal Managed Accounts ProgramSM Usage by Participant Age By the end of 2006 approximately 80 percent of our plan sponsors offered a lifecycle/lifestyle investment option in their investment line-up, which more than doubled from 2004. 28.1% 26.6% An increasing number of plan sponsors had designated lifecycle/lifestyle investments as their default investment option for the plan (nearly 6.3 percent in 2006 vs. 2.9 percent in 2005). Nearly $9 billion were invested in these investment options by the end of 2006, an increase of 36 percent from 2005. More than 875,000 participants directed their retirement funds to the Principal LifeTime or Russell LifePoints® investment options by the end of 2006, which is approximately a quarter million more participants than in 2005. In addition, more than 265,000 of the participants invested in the Principal LifeTime or Russell LifePoints® investment options had truly embraced the intent of the investment with 100 percent of the account balance directed to the investment. 27.7% 27.9% 14.6% 2.1% Under 34 35-44 45-54 55-64 Over 65 27.8% Lifecycle Investment Options Usage* by Participant Age * Percentages in graphs are rounded to the nearest integer percentages in order to increase readability and may not total exactly 100%. 29
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