About 45% of defined contribution plans may already be offering "target date" funds, or funds designed for employees who expect to retire around certain designated years, such as 2020 or 2035.
Researchers at the International Foundation of Employee Benefit Plans, Brookfield, Wis., have reported that finding in the foundation's latest investment management services survey, which drew on responses from a non-random sample of 167 corporations, multiemployer trust funds and public employers in the United States and Canada.
Participants in the survey, who may be working at larger employers with strong ties to groups such as the IFEBP, also told researchers that about 41% of their plans now offer an automatic portfolio rebalancing feature, to help keep growth in investments in certain asset classes from skewing overall portfolio allocations.
About 54% of the defined contribution plan participants said they use a bundled service provider arrangement, and 31% said they use an unbundled arrangement.
The researchers also surveyed administrators at defined benefit plans.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.