PLANADVISER Weekend Newsdash
Week ending June 8th, 2018

Happy Friday, readers! So far in 2018 there has been something of a resurgence of the target-date fund research topic in the financial services trade media. As the Great Recession of 2008 and 2009 retreats further into the rear-view mirror, providers are increasingly concerned about investor complacency—and on the optimal way to shape their risk glide paths for TDF product users who are approaching and entering retirement. Providers are also more prone to discuss the way workplace demographic shifts are morphing their approach to risk management and product presentation. Find the latest retirement investing news and analysis below.

Editor's choice
TDF Investor Behavior Improves, But Allocation Mistakes Remain Common
As new data shared by Vanguard shows, when constructing their own retirement portfolios, about 10% of participants still tend to hold extreme allocations—defined here as holding either 0% or 100% equities in a retirement-focused portfolio. Read more >
J.P. Morgan Retirement Leader Examines Sequence of Returns Risk in TDF Context
The latest though leadership from the firm asks an increasingly important question: “What should the TDF glide path look like as participants move from accumulating asset balances to spending down those balances in retirement?” Read more >
Are Managed Accounts Better for Participants Than TDFs?
Professional investment assistance helps DC plan participants’ outcomes; however, an analysis from Alight Solutions found users of managed accounts see higher returns, are more diversified and save more in their DC plans. Read more >
ICI Data Shows Managers Have Substantially Cut TDF, Other Mutual Fund Expenses
A broad new Investment Company Institute analysis shows the expense ratios of target-date mutual funds have fallen 34% since 2008, alongside the expense ratios of most other types of long-term funds.  Read more >
Leveraging the Popularity of TDFs to Provide Retirement Income
In a Q&A with BlackRock Managing Director Anne Ackerley, PLANADVISER hears about emerging opportunities to deliver retirement income solutions to DC plan participants, including through TDFs.   Read more >
MOST POPULAR STORIES
Fidelity Faces a Myriad of Allegations in New ERISA Lawsuit

In addition to self-dealing allegations, the complaint calls out Fidelity for not negotiating revenue sharing refunds for its 401(k) plan participants and not considering stable value options for its plan investment lineup, among other things.

Education About Tax Treatment and Fees Could Boost 401(k) Participation

Findings from a Capital One survey about why employees do not participate in their employer-sponsored retirement plan offers opportunities for education, according to Stuart Robertson.

Open MEPs Could Create Many Opportunities for Advisers
Should Congress or federal regulators eliminate the common nexus and bad apple rules that have held back open multiple employer plans, experts anticipate many more small businesses will jump in.
AARP Launches Social Security Resource Center

The new website is designed to be a one-stop place for investors and retirees to have their Social Security retirement questions answered, including when to claim.

Aggressive Saving Is Simply Essential for Retirement Adequacy

A detailed analysis prepared by Aon suggests the typical worker would have to start saving at age 25 and put away 16% of pay annually—including the employer retirement plan match—to achieve a stable retirement outlook by age 67.

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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