Tag: QDIA

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. 

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?”

Offered by Alight Solutions, WealthSpark combines highly customized investment portfolios designed by AllianceBernstein (AB) with Personal Capital’s digital wealth management tools.

“There is no such thing as a passive glide path design, and this, as well as the many other active decisions that go into the creation and management of a TDF, can translate into meaningful differences in investment risks and results, even among passive TDFs,” observes Jake Gilliam at Charles Schwab.

In its discussions with TDF managers, Mercer has found many managers say they have not aligned with the ACWI, and have continued with portfolios that display home equity bias for a number of reasons; the research also shows strong growth in passive TDF market share.

A paper from Morningstar Investment Management lays out a framework for advisers and plan sponsors to determine the qualified default investment alternative (QDIA) that is the best fit for a plan's demographics.

Providers are enhancing managed accounts with new features and are seeking to maximize the benefits of these solutions in order to outweigh their costs.