However, changes in the retirement landscape suggest that future retirees will face much more difficulty.
ERISA requires plan sponsors to regularly monitor investment lineups to ensure they remain prudent—a task made more complicated by the multi-layered construction of target-date funds; a new paper points to the best practices of defined benefit plans for some guidance.
Compared with those who seek out traditional advisers, “online enthusiasts” are marginally more skeptical of believing that financial services firms are working in their best interests, according to Cerulli research.
The number of 401(k) savers with at least $1 million in their 401(k) increased to 150,000 at the end of 2017, up from 93,000 a year ago.
Common sources of plan sponsor and participant concern with managed accounts include cost concerns, lack of participant understanding, and lack of qualified default investment alternative status unless only options on the plan's core investment lineup are used.
Ahead of small adjustments being made for 2018, the Endowment Index gained 17.61% for the calendar year ended December 31, 2017.
With the new opinion, the district court seeks to make clear where the line is when it comes to pleading standards in ERISA lawsuits.
Voya Investment Management has pledged to adopt six basic principles to promote and support the use of environmental, social and governance investing programs.
Empower’s PlanVisualizer aims to create a holistic view of a client’s retirement plan in its current state, along with the ability to model how changes to key design elements can potentially affect participant preparedness.
For one thing, a federal court judge found the defendants provide no authority supporting their contention that a plan document executed after the participant has ceased participation in the plan can bind the participant to arbitration.
Fidelity confirms that it will soon begin charging a 0.05% fee on assets invested through its platform into Vanguard products.
About a third of participants across Millennials, Generation X, and Baby Boomers who self-manage the investment of their plan accounts are more conservative than a typical target-date fund appropriate to their age.
Looking at asset flow data provided by Wells Fargo, there is very little money going into the standalone index equity fund options being added to DC plan menus—and this is probably a good thing.
Today, just 8.8% of “mega plans” with assets greater than $1 billion utilize a fully bundled structure.
Part of the very light trading activity can be explained by the prevalence of target-date funds, the largest asset class in the Alight Solutions 401(k) index.
Institutional investors with less than $1 billion in assets paid 65% more for investment management than medium-size funds ($1 billion to $10 billion in assets) and 91% more than the largest funds (greater than $100 billion in assets), Callan found.