Long-term care costs should be addressed as part of the retirement planning process, but it’s helpful for people to stop panicking and get a realistic understanding of what may lie ahead.
In October 2017, Vanguard plan participants reached a tipping point: Half of all Vanguard participants are invested in a single target-date fund—and 57% are invested solely in a professionally managed allocation.
In June 2017, Vanguard issued the first How Australia Saves. Investment behavior is similar worldwide. Investors who choose professionally managed allocations have reduced the dispersion of risk and return vs. self-directed investors.
Since 2001, more defined contribution plans are adopting automatic enrollment and many are also implementing stronger savings rate defaults. Over 20% more people are saving in these plans. Meanwhile, the total savings rate has stayed the same.