Advisers should be educated about annuities and how to analyze them to help plan sponsors decide the best products to use.
This is the first time it is pairing a managed account and retirement planning solution from its chief investment office.
A managed account program’s fees can be cut in half if it’s selected as a retirement plan’s default investment, although cost is just one of many important due diligence factors.
Plan sponsors that fully automate their plans are more likely than others to believe their workers are on the path towards a financially secure retirement, J.P. Morgan found.
In addition, a person invested in a stable value fund versus someone invested in a target-date fund could end up with a balance as much as 59% lower, BlackRock says.
Monthly expenses are their second concern, The Standard found in a survey.
However, only 33% are confident about their retirement readiness.
In addition, data on ESG investing is also inconsistent, assessing ESG could increase plan costs, and many investors incorrectly perceive that ESG investing can lower returns.
One measure is to encourage MEPs by eliminating the “nexus” requirement.
According to Fidelity, the enhanced managed account solution combines a personalized digital experience, discretionary investment management, ongoing support and access to a team of professional planning consultants.
How Hearst Corp. followed a prudent process to choose its qualified default investment alternative.
According to a T. Rowe Price study, 65% of defined contribution plan sponsors believe achieving the highest retirement income opportunity for participants is their greatest priority.