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.
An exciting football game can often be the bad kind of exciting—such as when your team’s high-priced quarterback fails to deliver on what his agent promised. The same might be said of some alternative investments.
The prospect of rising interest rates could make plan sponsors lose sight of the greatest risk to participants in target-date funds, along with the important reasons to invest in bonds.
Vanguard Fixed Income Group principal Josh Barrickman discusses how careful sampling, the use of a specialist model, and other techniques help his team’s bond-trading experts tightly tracking bond market indexes.
This blog discusses creating a cadence for planwide events. Margaret Rux, head of Vanguard Strategic Retirement Consulting, says a schedule of reenrollments and sweeps can improve plan participation rates and help get participants into age-appropriate investments.
Michael Palazzi, senior DC investment strategist, Vanguard Defined Contribution Advisory Services, shares how a “vanilla” TDF portfolio construction can be the best option for plan participants.
Should your defined-contribution retirement plan serve employees to retirement or through retirement? For sponsors interested in the lifetime approach, the head of our institutional business explains five plan design options.