Give your plan participants a retirement that makes a difference
Accumulation
Help participants stay invested for the long-term and continue to contribute
Decumulation
Give participants the ability to convert their accumulated assets into lifetime income and stay in the plan
Purpose
Give participants options that provide the purpose they seek
Source: Schroders. There is no guarantee these objectives will be achieved. Diversification cannot ensure a profit or protect against loss of principal.
Accumulation: Growth is Critical
Pursue consistent alpha performance to reduce surprises during volatility; Options for diversification to smooth the reide and manage emotional risk
- Pre-retirees have 25% in cash, not contributing to accumulation
- 51% of pre-retirees don’t know how their retiree assets are allocated
- Just 26% of Americans near retirement have enough saved for retirement
Decumulation/ Lifetime Income
Customized solutions desinged to provide monthly income and principal protection against sequence of return risk
- 82% of plan participants are concerned about not knowing how to best generate income and/or draw down their assets
- 50% of retirees said they had no strategy to generate income they just “take money when I need it”
- 74% expressed concerns that they don’t know how to best generate income and/or draw down their assets in retirement
- 53% believe they must take their assets out of their DC plan when they retire
Purpose
Access to fundamental, diversified investment options that have ESG embedded in their investment philosophy, including fixed income
- 90% of plan participants offered a sustainable/ESG option in their DC plan said they invest in it
- 69% said they would or might increase their contribution rate if their plan offered sustainable/ESG options
Test your lineup
Will it make a difference to your plan participants? When it comes to your DC plan, is your portfolio offering complete?
Questions to ask:
- Does the plan offer a balance of domestic, international and emerging markets fixed income investments?
- Does the plan offer a balance of non-core investments for participants seeking diversification?
- Does the plan offer funds with ESG embedded in their overall investment process?
- Does the plan offer a retirement income solution that protects against sequence of return risk?
Contact Us
Deb Boyden, Head of US Defined Contribution