When it comes to a defined contribution retirement plan, how do you define success? If you use investment performance as a key measure, you're not alone. In fact, a 2009 Hewitt Associates study[1] showed that six out of 10 plan sponsors ranked investment performance as one of the top two criteria they use to measure their retirement plan's success.
But while investment performance is an important part of the picture, it's not the whole picture. One big picture measure of retirement plan success might be in the answer to this question: Are plan participants on track for a more financially secure retirement? Those who are on track may be able to replace about 85 percent of their income at retirement.
Clearly, the last few years have been tough on this measure. The markets pounded account balance values, and many participants reduced their salary deferrals—or stopped contributing altogether—as their families dealt with job losses and other financial pressures.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
