Financial wellness is a bit of a conundrum. Its roots are in a person’s wallet, but when things go wrong, it can impact their health. As a result, employee benefit programs that don’t include a financial component may not be addressing a critical impediment to wellness.
Sponsored by John Hancock Retirement Plan Services
Fidelity Investments recently released the 8th edition of Plan Sponsor Attitudes, its survey of 1,106 plan sponsors. Andrew Dierdorf, target date strategies portfolio manager at Fidelity, discusses what the firm learned from this research and how target-date fund strategies can help address advisor and plan sponsor concerns.
Many defined benefit (DB) plans were closed to new entrants and/or frozen after the market crash in 2001 and the financial crisis in 2008. Due to many reports of the demise of DB plans, advisers might think all these plans would be terminated by now. However, many are still in existence and are—despite significant market returns during the past few years—still underfunded.