Setting up a DC plan can be relatively easy; getting your employees to enrol and make smart investing decisions is much harder.
The main challenges of retirement savings—plan participation, contribution rates, and portfolio diversification—are being met head-on by sponsors through their plan and investment menu design decisions, finds a Vanguard report.
Should you go active or passive? Two experts weigh in.
The evolution of 401(k) plan designs has resulted in a significant increase in the use of balanced funds, including target-date funds, by recently hired 401(k) plan participants in 2013 compared with recently hired participants 15 years ago.
A majority of Canadian employers with DC plans say retirement readiness has become a major issue for their employees and for their organizations.
The majority of large and mid-size U.S. employers that sponsor DC plans say retirement readiness has become a major issue for their employees.
Encouraging plan members to set aside money for their future—and to invest those savings in a thoughtful way to grow them over time—is the great retirement savings challenge for plan sponsors. But one thing is clear: making it easy for members to save and invest removes a key barrier to success. Hats off to the DC plan sponsors that are doing just that. Through creativity, innovation and smart decision-making, there is a pronounced and measurable move to simplify the DC plan experience for members.
Target-date funds are continually evolving, but how will they change moving forward?
Constructing a simpler menu of investment choices can help plan sponsors' employees get more from their DC plan, according to a BMO white paper released in the U.S.
Target date funds offer DC plan members a single, convenient investment solution. An asset allocation trajectory known as a glide path automatically and gradually shifts from a focus on capital growth to one of capital protection as the fund approaches maturity.