Not all replacement rate studies are the same, according to David Blanchett, research consultant from Morningstar's Investment Management division. And that could seriously hurt your clients.
Blanchett recently completed a research paper about the level of inaccuracy in the replacement rate studies that plan sponsors and consultants frequently request and undertake.
"Well-minded defined contribution plan fiduciaries and their consultants are increasingly interested in making sure their plan participants are 'on track' for a successful retirement," he writes. "We certainly applaud this mindset and the pursuit of the adoption of plan policies, investments and investment programs that will lead to a successful retirement. The pursuit of this goal naturally leads plan sponsors to focus on a variety of measures that assist the plan sponsor in determining if their participants are on track."
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.