Why is it important to align target date fund glide paths with retirement income goals? Employers today face significant challenges in maintaining a competitive benefits program that includes helping employees achieve financial wellness in retirement. As fewer employers offer defined benefit plans, there is an increasing reliance on defined contribution (DC) plans, placing the responsibility of saving and investing for retirement largely on employees. This shift in responsibility for saving and investing for what could be 25–30 years in retirement has left many employees struggling and overwhelmed.

Our research indicates:

• Half of participants may not be invested appropriately for their age.¹

• More than half of all employees are likely not on track to cover their basic lifestyle expenses—health care, food, and housing—in retirement.²

If employees are not on track to retire, employers may face increasing challenges in managing their workforce strategy.

Leading employers are focused on designing plans for retirement income replacement.