Plan sponsors need to rethink their target-date fund decisions

“Across all plans, we find that 58% of defined-contribution plan assets are invested in off-the-shelf TDFs. Off-the-shelf TDFs are not customized but are offered with the same glide path to multiple plans.”

By Dan Cook | July 26, 2022 at 10:17 AM

Far too many benefits plans are exposing their close-to-retirement members to risky investment strategies that could seriously compromise their retirement financial status.

Why and how? The why: the plan designers are on autopilot, not thinking about the characteristics of the group. The how: they are choosing inappropriate target-date funds (TDFs) for plan members.

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