Target-date funds, or TDFs, can have a powerful influence on plan participants’ retirement savings by simplifying investment decision-making. And when TDFs are carefully selected to match with plan participant characteristics and behaviors, they have the potential to help more participants achieve greater retirement security.
That’s why TDFs are a popular choice for a qualified default investment alternative (QDIA) for 401(k) and other defined contribution plans.
In general, customization is important, and the reason is quite simple: Not everyone is living the same life. All kinds of products can benefit from customization, and that includes retirement plans and other financial products and services. Managed accounts represent an ideal way for retirement plan participants to access more personalized service, with customization as a major focal point.
As the American middle class in particular continues to lose confidence in their ability to enjoy a fulfilling retirement, they may be eager for new opportunities to set themselves up for financial success. Managed accounts could provide plan sponsors with an appealing option.
For the most part, Gen Z — born in the late 1990s or later — never knew a world without the internet. Neither are they old enough to remember the attacks on 9/11. These young digital natives watched as their parents navigated the Great Recession, as their nation elected the first Black president, and as the globe embraced social media.
Now, many Gen Zers are in their mid 20s and among the youngest in today’s workforce. Retirement is a long way off, but that doesn’t mean they’re pushing off planning for it.
It’s been said that if you believe in yourself, anything is possible. Such statements have drawn ridicule from some who suggest that belief will get you nowhere without action. To achieve business growth in the financial services sector, professionals generally feel the need to form their beliefs on data, research, product knowledge and other information to develop successful strategies.
Small business leaders and employers sometimes have a harder time recruiting workers due to their inability to offer the robust retirement plan benefits that larger enterprises can. That may no longer be the case since the introduction of rules surrounding Pooled Employer Plans, also known as PEPs.
