Capital Group adds retirement income to target-date funds; HSA invested balances top $100 billion

Capital Group published a retirement-income framework for its target-date funds that models a 30-year retirement with fixed annual withdrawals starting at 4% to 4.5% and variable withdrawals at 5% to 5.5%. The Los Angeles manager also renamed its 2010 through 2025 target-date funds to include "retirement income," pointing the funds at the spending phase.

Vanguard is preparing a Target Retirement Growth Trusts collective investment trust series built on its existing Target Retirement foundation, with more equity throughout the glide path.

Devenir reported that invested HSA balances topped $100 billion, or 52% of HSA assets. Investment-holding accounts—11% of HSAs—hold 59% of HSA assets and average $23,837, according to Devenir.

Morgan Stanley's poll of 200 plan sponsors found 45% rank helping employees understand the DC plan among their top three concerns. Another 69% call the advisor a top resource for lineup decisions. Participant understanding outranks benefits competitiveness among sponsors' three most important concerns, and the share naming the DC plan the single most valued benefit rose to 34%.

401(k) Specialist's October installment examines AI in retirement plan advice and administration, covering participant-facing app guidance and back-office assistants for advisors and asking which tasks still need a person.

AIC found private equity's median 10-year annualized return across the 200 funds studied was 13.2%, compared with 10.58% for public equities. That was the 14th consecutive year private equity topped public pension returns.

At a Treasury and IRS hearing on proposed Trump Account rules, Aon's Grace Lattyak said the rules may shortchange children of divorced or separated parents. Elon Musk pledged one SpaceX share per child as the rules are debated.