While it’s important for plan sponsors to balance the need for a well-designed default fund against the expanded menu options for a minority of participants wanting to make active investment choices, participant savings rates are even more important.
Although it’s still common to talk about DC menu options in terms of choice overload, Steve Utkus, director of Vanguard Center for Retirement Research, explains why it’s time to retire that concept in DC plan menu design, given the growth of automatic enrollment and target-date funds in DC plans.
Steve Utkus, principal and director of Vanguard Center for Retirement Research, analyzes DB and DC plan performance data. He concludes more data and deeper analysis are needed for more concrete results.
Individual demand for annuities is low, but in-plan annuities are getting more attention as concerns grow over helping retirees draw down their savings.
Despite the surge in activity among some investors in volatile markets, many plan participants let inertia rule and make no portfolio changes.