An Informed, Research-Based Approach to Better Retirement Outcomes
- Glide paths underlying target date solutions must represent multiple life-cycle phases leading up to and through a participant’s retirement because they are the most commonly used qualified default investment alternative in defined contribution plans.
- There is value in evolving the way glide path strategies are assessed relative to the evolving retirement needs of participants.
- It is equally valuable for plan sponsors to consider the multiple forms of “risk” that are present within the retirement life cycle and to understand the corresponding trade-offs of mitigating each of these risks.
- Taking the time to assess the relative importance of each phase of a glide path will allow plan sponsors to understand the proportional impact on outcomes for retirement savers.
- Evolving the glide path assessment process may help plan sponsors ensure that target date products and their glide paths are well understood and chosen in accordance with their plans’ long-term goals and their participants’ retirement needs
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The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation, or a solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.