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

Our research indicates:

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

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

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

Leading employers are focused on designing plans forretirement income replacement. You can serve clients well by makingsure that they're thinking about income.