How Can US DC Plans Deliver a Lifetime Income Solution?
The federal government wants to make it easier for employers to offer lifetime income solutions in retirement plans. My colleague, Mark Fortier, offers an interesting approach to doing so.
read moreFees Matter a Lot, but They’re Not All That Matters
The US Department of Labor’s new fee-disclosure rules for defined contribution (DC) plans will provide participants with much more information on plan and investment-option fees. That’s good. But there’s a real risk that it may unintentionally drive participants toward making poor investment decisions, as my colleagues Mark Fortier and Daniel Notto explain below.
read moreNew Rules to Shed More Light on US DC Plan Provider Fees
This spring and early summer will be a busy time for US defined contribution plan sponsors and providers, but to a good end: greater clarity on services and fees.
read moreWhy Aren’t US DC Participants Annuitizing Their Savings at Retirement?
Two-thirds of US defined contribution (DC) plan participants say that a secure retirement income stream is the most important feature they’re looking for, as we noted in our seventh annual survey report. But US workers rarely convert their retirement savings to lifetime income by purchasing a traditional fixed annuity. What’s standing in the way?
read moreWhat Workers Get—and Don’t Get—About Target-Date Funds
Target-date funds have gained strong approval among US defined contribution (DC) plan participants who use them, as I have written before. But results from our seventh annual survey suggest that many US DC plan participants still have some mistaken notions about what target-date funds are…and are not.
read moreAre Traditional Annuities Bad for Your Wealth? A UK Perspective
Roughly 90% of defined contribution (DC) savers in the UK still buy fixed-rate immediate annuities at retirement. Does this make sense for UK workers, and is there a lesson to be learned for the US?
read moreRetirement Confidence Falls Sharply Among Older Workers
Market losses and continuing volatility have badly shaken US workers’—particularly older workers’—confidence in the prospects of a comfortable retirement, according to our recent survey of US defined contribution (DC) plan participants.
read moreOur View on the Final Participant Advice Rules
In a reversal, the US Department of Labor’s final regulation requires computer-generated investment advice to include target-date funds when comparing the investment offerings provided by a defined contribution plan. But the hurdles to being compliant are high.
read moreKnowing Your Account Value Isn’t Enough
A retirement account lump sum may look like a lot, but how much should one withdraw each year to have a good chance of sustaining income through retirement? Surprisingly few people know.
read moreHave Target-Date Funds Lost Their Allure?
A recent article in Pensions & Investments discussed a fund company survey that suggested defined contribution (DC) plan participants aren’t happy with their target-date funds. The survey found that only 22% of participants were “very satisfied” with their target-date investment. The fund company—which isn’t a target-date fund provider—called that “pretty darn low.” But the survey also found [...]
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