Anxiety about turning DC plan assets into a “lifetime retirement paycheck” in such a low-rate environment is keeping aging Americans in the workforce—including many who very likely have enough money saved to retire comfortably and don’t want to keep working.
A BrightScope/ICI study also found collective investment trusts (CITs) accounted for a larger share of assets in larger plans than smaller plans.
A new academic paper published by the TIAA Institute shows little difference in behavior among undergraduate students, young adults, middle-aged people and older subjects when it comes to rationally navigating uncertain conditions.
While only 0.21% of balances were exchanged in May, it was the highest monthly activity so far this year, according to Alight Solutions.
Many retirement plan participants want to deploy their values in their portfolios, as do portfolio managers; advisers can help make this happen.
Long-duration private debt can be used for hedging liabilities, and other alternative investments may be used for enhancing risk-adjusted returns, a report from Cerulli Associates explains.
Studies conflict over the long-term performance of environmental, social and governance (ESG) investing, and institutional investors say they want better track records.
A research report argues that even defined contribution (DC) plan participants in plans with a default investment do not have the financial acumen to know whether the default is right for them or whether they should opt out.
Sales of fixed annuities increased 38% during the first quarter of 2019 relative to the same period last year, according to the LIMRA Secure Retirement Institute.
The large increase, rising to an average of $267,609, was due to the improvements in the market, Charles Schwab says.
History shows it is one thing to feel prepared, and quite another to be prepared.
Investors also look at historical performance and performance compared to an index, ICI found.
U.S. equities were the driver of rebounds from the 4th quarter of 2018, according to the Northern Trust Universe and the Wilshire Trust Universe Comparison Service.
April marks the 15th month in a row that 401(k) investors have been fleeing equities for the safety of fixed income, Alight says.
This is driving providers to offer inexpensive options, such as series that rely on CITs and passive funds, Morningstar says.
Fidelity analyzed the balances of those who remained invested in their 401(k) in the decade following the Great Recession of 2008 and found that the balances went from $52,600 to $297,700.
A report by Morningstar credits this decline to the migration towards lower-cost funds and an influx of strategic-beta funds.
Doing so could encourage more employees to participate in the plan, sources say.