American workers are suffering from a decline in confidence that they will be sufficiently prepared for retirement — and they’re looking to their employers for help.
Plan sponsors often find the target date fund (TDF) selection process understandably daunting. Evaluating TDFs is a multi-faceted process that requires a deep dive into the four components of TDF design — glide path design, asset allocation, selecting underlying managers, and portfolio construction.
Retirement readiness is a major challenge for many plan participants. For plan sponsors, plan design is no longer about simply focusing only on helping participants build their savings. Providing participant income solutions in the decumulation stage is now equally important, especially because new research shows that many workers need help in this area.
Passive investing has become popular with defined contribution plans due to its low costs and ease of use. In addition, many DC plan sponsors tend to view offering passive funds as a means of preventing participant lawsuits. But fiduciary responsibility doesn't automatically equate to offering only the least expensive or most hands-off investment options.
As people approach retirement, their investment priorities change. They become less concerned with growth and more concerned with preservation of capital and generating income. And they are looking to their employers for investment solutions that can help.
The retirement tier describes the investment products and solutions available within defined contribution (DC) plans that address the unique needs of participants who are entering the decumulation phase of retirement.
Target date funds should be designed not just to maximize wealth accumulation during a participant’s career; they should also protect that wealth as the participant approaches and enters retirement. Here are three reasons why the glide path design of target date funds matters.
A new income strategy from Voya Investment Management gives employers a tool to help plan participants meet their retirement spending needs and reduce their chances of running out of money.
Collective investment trusts (CITs) offer many benefits to defined contribution plan sponsors — and, ultimately, to plan participants — but misconceptions about them persist.
This paper presents a glide path design process that seeks to maximize the probability of successful retirement by factoring plan participant profiles into investment decisions.
Voya’s biannual defined contribution plan sponsor survey seeks to offer perspectives on sponsors’ priorities, the challenges they face, and the services they may need.