For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.
Benefits June 17, 2009
Vanguard Sees Continued Explosion in Target-Date Fund Usage
June 17, 2009 (PLANSPONSOR.com) - The Vanguard
Center for Retirement Research reported that the use of
target-date funds in defined contribution plans administered
by Vanguard continues to grow rapidly.
Reported by Fred Schneyer
A Vanguard news release said at the end of 2008, seven in ten such plans offered a target-date fund, and more than one-third of participants opted for them.
The report notes that three factors were fueling the adoption of target-date funds by plan sponsors and participants:
- the funds’ simplified approach to investment decisionmaking;
- the growing use of automatic enrollment within plans; and
- target-date funds’ designation as a qualified default investment option under the Pension Protection Act of 2006.
You Might Also Like:
ERISA Advisory Council Explores Annuity Default Options in DC Plans
Experts recommended annuities in QDIAs would help participants avoid outliving their assets.
Benefits |
PSNC 2024: Essential QDIA Considerations
Plan sponsors may need additional time and processes to consider qualified default investment alternatives, as various TDFs, managed accounts and...
Participant Spending Behavior Plays Role in Selecting QDIA, Guaranteed Income Solutions
New J.P. Morgan research finds that participants experience spending surges and volatility at different points of retirement.