"Mega" defined contribution plans are experiencing a surge in managed accounts in 2015, according to data released by Cogent Reports.
Nearly one-fifth of those plans, which the Massachusetts-based consultancy defines as holding $500 million in retirement assets or more, now default participants into managed accounts. In 2014, only 5 percent of the plans relied on managed accounts. Already in 2015, that number is now 18 percent.
"The increased usage of managed accounts among Mega plans signals a growing desire in the industry to offer a more personalized solution of plan participants," said Linda York, vice president at Cogent Reports, a division of Market Strategies International.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
