July 30, 2021 Is Your Target-Date Fund Providing Enough Inflation Protection? by Christopher Nikolich, Vinod Chathlani, Elena Wang With inflation on the rise in the post-pandemic recovery spending power for plan participants near or in retirement could be vulnerable. Target-date funds have tools at their disposal to battle inflation, but if they’re not deployed effectively, it could end up exacting a performance cost. Asset Allocation, Inflation, Plan Design, Target-Date Solutions Likes 0 SHARE Bookmarks
March 01, 2021 As Retirement Income Needs Grow, DC Plan Sponsors Weigh Solutions by Jennifer DeLong, Andrew Stumacher As more plan participants worry about retirement income security, demand for guaranteed income solutions is growing—and plan sponsors are pondering the options. While there are many ways to measure the benefits, we believe that some approaches—like in-plan and default options—have distinct advantages. Plan Design, Target-Date Solutions Likes 0 SHARE Bookmarks
August 06, 2020 DOL’s New Rules Don’t Have to Slow DC Plan ESG Adoption by Jennifer DeLong, Michelle Dunstan Demand for ESG investing is growing among DC plan participants, but with plan sponsors facing many choices and proposed new DOL rules, what’s the best approach? As we see it, fully integrating ESG considerations is fundamental to better financial outcomes—which is always in participants’ best interests. Plan Design, Policy & Regulation, Responsible Investing/ESG, Target-Date Solutions Likes 0 SHARE Bookmarks
June 16, 2020 How Target-Date Funds Can Use Equities for Stability by Christopher Nikolich, Chris Marx Target-date portfolios that use carefully chosen defensive equities are best equipped to protect from coronavirus market turmoil and volatility in general. Active & Passive , Asset Allocation, Coronavirus, Target-Date Solutions, Volatility Likes 0 SHARE Bookmarks
May 07, 2020 Systematic Target-Date Rebalancing: Taking Emotion out of the Equation by Christopher Nikolich, Elena Wang The turmoil in the first quarter of 2020 reinforced the importance of rebalancing in target-date design. As we see it, a finely tuned, systematic approach can help keep emotions in check and risk under control—benefits that translate to many types of multi-asset solutions. Asset Allocation, Multi-Asset, Plan Design, Target-Date Solutions, Volatility Likes 0 SHARE Bookmarks
April 24, 2020 DC Plan Sponsor Fiduciary Torch Is Brighter—and Can Help Light Dark Days by Jennifer DeLong DC plan sponsors are taking their fiduciary roles more seriously today, and upping training among their ranks while relying more on third-party expertise, based on our latest survey. Plan Design, Target-Date Solutions Likes 0 SHARE Bookmarks
April 06, 2020 Don’t Panic! Bear Market Communication Tips for DC Plan Sponsors by Jennifer DeLong The bear market is challenging defined contribution (DC) plan sponsors to reinforce timeless investing principles while also conveying new rules that bring relief to participants. Good communication practices are a key ingredient to achieving success in both these areas. Coronavirus, Multi-Asset, Plan Design, Target-Date Solutions, Volatility Likes 0 SHARE Bookmarks
December 23, 2019 Stick to the Plan! Benefits of Remaining in DC Plans During Retirement by Jennifer DeLong, Andrew Stumacher The SECURE Act will likely prompt more DC plan sponsors to seriously consider adopting a lifetime income solution. Plan sponsors may also determine that they want to let participants keep their assets in the DC plan during the withdrawal phase of retirement. This could be beneficial for both the plan and the participants. Target-Date Solutions Likes 0 SHARE Bookmarks
December 20, 2019 Lifetime Income: Weighing Costs vs. Benefits by Jennifer DeLong, Andrew Stumacher With the likely passage of the SECURE Act within the new government appropriations bill, annuities will gain safe harbor protections. This—and presumed cost concerns—has been a sticking point making some plan sponsors hesitate to offer a lifetime income solution in their defined contribution plans. There are important and valuable benefits that only annuities can provide. So they deserve another look. Target-Date Solutions Likes 0 SHARE Bookmarks
October 16, 2019 Five Lessons Packaged Target-Date Solutions Can Learn from Customization by Jennifer DeLong, Andrew Stumacher As defined contribution (DC) plan sponsors know, the US Department of Labor recommends considering both packaged and custom target-date strategies when choosing a solution. As we see it, packaged solutions can learn a few things from fully customized target-date solutions, which are generally used by large and megasize plan sponsors. Asset Allocation, Multi-Asset, Target-Date Solutions Likes 0 SHARE Bookmarks
October 03, 2019 Finding a Flexible, Plan Sponsor-Friendly Secure Income Solution by Jennifer DeLong, Andrew Stumacher When plan sponsors consider a lifetime income solution as their DC plan’s default investment, they frequently cite two must-have ingredients: flexibility in adjusting to individual participant circumstances, and simplicity in implementation. Target-Date Solutions Likes 0 SHARE Bookmarks
October 02, 2019 US DC Plan Participants Want Certainty and Control by Andrew Stumacher, Jennifer DeLong For any lifetime income solution to be effective within a DC plan, it will have to satisfy two major participant concerns: certainty of that retirement income and control over those hard-earned plan assets. Not all lifetime income solutions are able to provide those must-have ingredients. Target-Date Solutions Likes 0 SHARE Bookmarks
September 11, 2019 Selecting Insurers for Lifetime Income: Help Is on the Way by Jennifer DeLong, Andrew Stumacher When it comes to implementing a secure lifetime income solution for a defined contribution (DC) plan, sponsors may balk at the task of evaluating insurers and different types of retirement income options. But fiduciary help is already available, with additional services and innovations on the way. Target-Date Solutions Likes 0 SHARE Bookmarks