RT Journal Article
SR Electronic
T1 Wake Up and Smell the Coffee! DC Plans Aren't Working
JF The Journal of Investing
FD Institutional Investor Journals
SP 81
OP 99
DO 10.3905/joi.2007.698967
VO 16
IS 4
A1 M. Barton Waring
A1 Laurence B. Siegel
YR 2007
UL https://pm-research.com/content/16/4/81.abstract
AB Defined-contribution plans are not meeting the goal of enabling employees to save enough to retire. Improving them involves a savings component, an investment component, and a payout component. To encourage savings, employers can use behavioral strategies such as a high default savings rate and auto-escalation. The investment component should center on pre-mixed asset allocation funds built of index funds and carefully selected active funds. Payout options should include annuities, which enable the employee to convert savings to a guaranteed lifetime income as in a defined benefit plan.TOPICS: Retirement, in wealth management, mutual funds/passive investing/indexing