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Workers rely increasingly on defined contribution plans, but their investments may be too risky.
As the global economy heads toward an inflection point, we believe it’s time for DC plan sponsors to review their core investment lineups.
By revamping defined contribution plans to include an appropriate level of inflation hedging, sponsors may help their participants preserve purchasing power throughout retirement.
We believe target-date strategies may expose participants to more risk than they can afford.
Based on our research, we believe retirement plan participants’ capacity for loss may be much lower than many investment default options accept as tolerable.