The Forgotten Participant

Examining participant investment
decision-making

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Forgotten Participant

What drives plan participants to construct their retirement portfolios?

Learn how plan sponsors can help evolve the DC investment menu.

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We connected with 110 large plan sponsors and 2,001 defined contribution (DC) plan participants who shared their views through online surveys, in-depth interviews and focus groups across the US. Our goal was to gain an understanding of why and how certain participants are allocating across individual options in the core investment menu while also investing in target date funds (TDFs). With this knowledge, plan sponsors can be better positioned to provide a more optimal mix of investment solutions for their participants.

More than 110 large plan sponsors and 2,001 defined contribution (DC) plan participants shared their views with us through online surveys, in-depth interviews and focus groups across the US.

To request a copy, complete the form below.
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EXECUTIVE SUMMARY

Our key insights

We set out to learn what beliefs and needs drive participants’ construction of their retirement portfolios, and what role DC investment menu design plays. What we found has been distilled into three important takeaways and next steps for plan sponsors.



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1 Source: Callan DC Index, quarter-end, September 30, 2019.

INDUSTRY CHALLENGE

Today’s DC investment menu

While Qualified Default Investment Alternatives (QDIAs) have evolved over the last decade, core menu design has remained relatively unchanged



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KEY INSIGHT

Participants prefer more control in building their portfolios

We believe the forgotten participants (those who allocate across TDFs and the core menu) are often overlooked by DC decision makers. Our research uncovered some interesting behaviors and next steps to address them.



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KEY INSIGHT

Forgotten Participants are interested in risk-based solutions

DC plan participants liked the ability to choose a professionally managed solution aligned to personal risk tolerance.



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KEY INSIGHT

A dynamic risk profile tool can help with decision making

Participants are more likely to invest in a risk-based strategy if they had easy-to-understand resources to help them select the right investment option.



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Get the full white paper

We connected with 110 large plan sponsors and 2,001 defined contribution (DC) plan participants who shared their views through online surveys, in-depth interviews and focus groups across the US. Our goal was to gain an understanding of why and how certain participants are allocating across individual options in the core investment menu while also investing in target date funds (TDFs). With this knowledge, plan sponsors can be better positioned to provide a more optimal mix of investment solutions for their participants.

More than 110 large plan sponsors and 2,001 defined contribution (DC) plan participants shared their views with us through online surveys, in-depth interviews and focus groups across the US.

To request a copy, complete the form below.
State