Sponsors of Fully Automated Retirement Plans Feel They Are Reaching Goals
Seventy percent think their approach will help employees retire at their targeted retirement age, compared to only 43% of plan sponsors without this specific plan design.
Tag: Qualified Default Investment Alternative
DC Plan Sponsors Slow to Adopt Hybrid QDIAs
Just as defined contribution (DC) plan sponsors were once concerned about automatically enrolling employees in the plan when they didn’t actively select it, they have hesitations about using qualified default investment alternatives (QDIAs) that automatically place participants in a managed account.
Some Plan Design Choices Could Undermine Participant Outcomes
Setting defaults too low, choosing the wrong default investment and offering company stock as an investment option could result in unintended consequences, BlackRock found.
Morningstar Paper Lays Out Method to Determine the Best QDIA
“The world is moving toward big data, and thus far as an industry we haven’t been able to use big data in a meaningful way. We are now in the midst of a paradigm shift that will allow plan sponsors to make data-driven decisions in an entirely new way,” says Thomas Idzorek, with Morningstar Investment Management.