Investing

The asset management firm points to the importance of increasing savings and diversification as two ways to counteract potential lower returns.

Thanks to increases in longevity and lower expected returns from stocks and bonds in the foreseeable future, annuities are now seen as a big part of the solution.

Experts analyzed market performances from last year and outlined what they anticipate for 2021.

While there is certainly room for optimism about where the equity and bond markets are heading, experts say it is still crucial to focus on sequence of returns risk for those near and in retirement.

The slow but steady distribution of coronavirus vaccines in the U.S. and other developed nations is also having a favorable impression on the equity markets, but serious risks remain. 

Assessing the relationship between interest rates and debatably inflated stock prices is a useful exercise, sources say, especially at a time when stocks are about as ‘expensive’ as they have ever been.

TIAA says a variable annuity and mutual funds that take an ESG approach are widely used on its retirement plan platforms.

A wave of key leadership changes is expected to drive regulatory shifts in environmental, social and governance strategies.

The lingering question is what speed the recovery will take.

As one expert tells PLANADVISER, repositioning portfolios after the recent run-up in risk asset prices could help mitigate future volatility.

But Republican support will be crucial for a number of President-elect Joe Biden’s proposals. 

By the end of the month, investors had nearly 70% of their balances in equities, according to the Alight Solutions 401(k) Index.

More retirement plans could begin offering environmental, social and governance funds in their lineups.

In addition, Cerulli says it expects that plan sponsors and retirement plan providers will engage in more exploratory discussions about including private equity in target-date funds.

The change in presidential administration could result in more opportunities in Chinese companies, for example.