The use of automatic features has also benefited participants, Vanguard says.
Tag: Default funds
Consultants interviewed by PIMCO weighed in on which target-date strategies are best for which plans, which active strategies are best for which investments, and more.
Many folks under 30 are “do-it-for-me” type investors.
An investment with lifetime income elements can be a prudent default investment option in DC plans, even if not a QDIA, the DOL said in an information letter.
Plan participants and sponsors face an impressive amount of complexity and diversity when assessing target-date funds.
The companies expect to bring new market cap-based equity strategies to retirement plan clients, with a focus on target-date funds.
Trends in redesigning retirement plan investment menus to avoid participant inertia or overload.
However, only 23% of small plans permit participants to contribute immediately to their 401(k).
Twenty-six percent of 401(k) assets are now in model portfolios and TDFs.
MassMutual publishes book on improving plan outcomes.
They want safety from market volatility, and they don’t think Social Security will be there for them.
On average, they started saving for retirement at age 26.
The new tool accounts for plan demographics in TDF selection.
Are investment menu consolidation and simplification in the best interest of plan participants?
These separately managed investment accounts are built around each participant’s asset profile and individual circumstances.
With numerous Baby Boomers retiring and current market and interest rate risk factors, conservative investment options remain an important part of the retirement plan menu.
A new study from the Employee Benefit Research Institute (EBRI) and the Investment Company Institute finds 401(k) plan design changes have led to substantial popularity for balanced funds, especially target-date funds (TDFs).
Responding to a request for information from the DOL, most industry groups said they believe no further regulation is necessary to govern use of brokerage windows in retirement plans.
Defined contribution (DC) plan participants reduced their holdings in fixed income and increased allocations to U.S. small-cap and mid-cap equities in 2013, while target-date funds continued to increase as a top asset class, says a recent analysis.
Five target-date funds (TDFs) are among the nine funds launched by BMO Global Asset Management.