Challenging market conditions and increasing longevity are having a profound effect on retirement planning for most Americans – and they are relying more heavily on their defined contribution (DC) plans to help them meet their retirement savings goals. That’s why it’s more important than ever for DC professionals to understand the evolving retirement landscape.
Investment menus designed with clarity, transparency and simplicity that can adapt to ever-changing markets can help individuals achieve the savings they will need to last through their retirement years. Help clients and prospects meet these needs with index building blocks, target date funds (TDFs), new thinking in fixed income and more.
Assess the Target Date strategy
Have you reviewed the TDF strategy offered by your clients’ plans lately? Help clients and prospects assess whether their plans’ target date strategy still meets their needs. Consider whether it is built to withstand market volatility while providing growth potential through a wide range of market cycles and facilitate a smoother transition into stable retirement income.
Rethink Your Bonds
With interest rates at record lows and the outlook uncertain, fixed income styles and strategies that worked in the past may not work as well in the future. Consider bond menu choices that can help enhance diversification, decrease interest rate sensitivity and manage risk.
Intelligently Incorporate Index and Active Strategies
Increased focus on fees, investment expenses and transparency is fueling a growing DC trend toward index strategies. A thoughtful combination of both active and indexing can potentially deliver better returns for plan participants. Do your clients' plan investment menus mix of active and index funds offer an ideal combination of value and performance?