401(k) Specialist Issue 2 - 2020 - 7
401(k) NEWS YOU CAN USE
What to Do About 'Forgotten'
401(k) Target Date Fund Participants
SHOULD PARTICIPANTS ONLY be invested in one target date fund
for the product to work effectively in providing successful retirement
outcomes?
It's a question Morningstar recently tried to definitively answer
(yes). Regardless, there is a " significant subset " of participants who
prefer more control in building their own portfolios and don't view
investing in a single TDF as right for them.
A recent study from Invesco called The Forgotten Participant finds
these participants intentionally allocate across TDFs and the core
menu in an effort to diversify and fine-tune their risk level.
" These are the Forgotten Participants that DC decision-makers often
overlook, " according to the company. " They approach decision
making with limited investment knowledge and often with overconfidence.
This can lead to poorly constructed portfolios that may
not be systematically rebalanced, properly diversified or in line with
how much (or how little) risk a participant is willing to take. "
Indeed, in an asset allocation exercise among focus group participants,
only 6% invested in a single TDF, and 71% of
participants are/plan to be moderately to aggressively
invested 10 years away from retirement.
ONLINE
EXTRA
By Default: DC Plan Adoption
of Auto Features Still Rising
NOWADAYS, EMPLOYEES HAVE TO " opt out " more than they have
to " opt in " when it comes to company retirement plans-significantly
more than 10 years ago, according to NEPC's Defined Contribution
Plan and Fee Survey.
It found 76% of corporate retirement plans and 54% of healthcare
plans have included an automatic enrollment feature into their plan
designs as a measure to help increase overall plan participation.
Of the plans that incorporate auto-escalation, almost half (48%)
offer it as an opt-out feature-a significant change from 2010 when
72% of plans that offered auto-escalation indicated they required
participants to opt-in to this feature.
The results show how plan sponsors are using innovative strategies
to address many of the unique challenges posed by the " new
American retirement. "
For those plans with more than $1 billion in assets, 24% offer
participants custom target-date funds tailored to participant characteristics,
likely as a strategy to better control the glide path and
investment allocations.
ISSUE 2 2020 | 401kSpecialist.com
7
© Josepalbert13 | Dreamstime.com
© Grkistock | Dreamstime.com
http://www.Dreamstime.com
http://www.Dreamstime.com
http://www.401kSpecialist.com
401(k) Specialist Issue 2 - 2020
Table of Contents for the Digital Edition of 401(k) Specialist Issue 2 - 2020
Table of Contents
401(k) Specialist Issue 2 - 2020 - Cover1
401(k) Specialist Issue 2 - 2020 - Table of Contents
401(k) Specialist Issue 2 - 2020 - 1
401(k) Specialist Issue 2 - 2020 - 2
401(k) Specialist Issue 2 - 2020 - 3
401(k) Specialist Issue 2 - 2020 - 4
401(k) Specialist Issue 2 - 2020 - 5
401(k) Specialist Issue 2 - 2020 - 6
401(k) Specialist Issue 2 - 2020 - 7
401(k) Specialist Issue 2 - 2020 - 8
401(k) Specialist Issue 2 - 2020 - 9
401(k) Specialist Issue 2 - 2020 - 10
401(k) Specialist Issue 2 - 2020 - 11
401(k) Specialist Issue 2 - 2020 - 12
401(k) Specialist Issue 2 - 2020 - 13
401(k) Specialist Issue 2 - 2020 - 14
401(k) Specialist Issue 2 - 2020 - 15
401(k) Specialist Issue 2 - 2020 - 16
401(k) Specialist Issue 2 - 2020 - 17
401(k) Specialist Issue 2 - 2020 - 18
401(k) Specialist Issue 2 - 2020 - 19
401(k) Specialist Issue 2 - 2020 - 20
401(k) Specialist Issue 2 - 2020 - 21
401(k) Specialist Issue 2 - 2020 - 22
401(k) Specialist Issue 2 - 2020 - 23
401(k) Specialist Issue 2 - 2020 - 24
401(k) Specialist Issue 2 - 2020 - 25
401(k) Specialist Issue 2 - 2020 - 26
401(k) Specialist Issue 2 - 2020 - 27
401(k) Specialist Issue 2 - 2020 - 28
401(k) Specialist Issue 2 - 2020 - 29
401(k) Specialist Issue 2 - 2020 - 30
401(k) Specialist Issue 2 - 2020 - 31
401(k) Specialist Issue 2 - 2020 - 32
401(k) Specialist Issue 2 - 2020 - 33
401(k) Specialist Issue 2 - 2020 - 34
401(k) Specialist Issue 2 - 2020 - 35
401(k) Specialist Issue 2 - 2020 - 36
401(k) Specialist Issue 2 - 2020 - 37
401(k) Specialist Issue 2 - 2020 - 38
401(k) Specialist Issue 2 - 2020 - 39
401(k) Specialist Issue 2 - 2020 - 40
401(k) Specialist Issue 2 - 2020 - 41
401(k) Specialist Issue 2 - 2020 - 42
401(k) Specialist Issue 2 - 2020 - 43
401(k) Specialist Issue 2 - 2020 - 44
401(k) Specialist Issue 2 - 2020 - Cover3
401(k) Specialist Issue 2 - 2020 - Cover4
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-3-2024
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-2-2024
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-1-2024
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-3-2023
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-2-2023
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-1-2023
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-3-2022
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-2-2022
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-1-2022
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-4-2021
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-3-2021
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-2-2021
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-1-2021
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-4-2020
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-3-2020
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-2-2020
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-1-2020
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-4-2019
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-3-2019
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-2-2019
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-1-2019
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-3-2018
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-2-2018
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-1-2018
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-4-2017
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-3-2017
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-2-2017
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-1-2017
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-4-2016
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-3-2016
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-2-2016
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-1-2016
https://www.nxtbook.com/401kspecialist/401k/401k-specialist-issue-1-2015
https://www.nxtbookmedia.com