At a glance
- The paper, Evolving DC Core Menus, 2013-2023: Seven Key Themes, summarizes three previously published RRC studies of core menus.
- For plan advisers, the paper’s conclusion frames the next phase of menu reviews as a question of whether participant portfolios are positioned for retirement rather than how many lineup options the plan offers.
- In a separate DCIIA study for Allspring this month, 70% of participants ranked control above guaranteed income, as Private Wealth Daily reported.
Target-date funds, indexing and fee reductions drove the biggest changes in 401(k) core menus from 2013 through 2023, according to a paper released Oct. 29 by the DCIIA Retirement Research Center.
The paper, Evolving DC Core Menus, 2013-2023: Seven Key Themes, summarizes three previously published RRC studies of core menus. Its release was first reported by 401(k) Specialist.
For plan advisers, the paper’s conclusion frames the next phase of menu reviews as a question of whether participant portfolios are positioned for retirement rather than how many lineup options the plan offers. The authors name diversification, retirement income, fixed-income exposure and risk management as areas that may need more attention as the retirement system matures.
“Much of the industry’s progress over the last decade has occurred through implementation rather than menu redesign,” said David Blanchett, head of retirement research at Prudential Financial and a portfolio manager at PGIM. “The research shows that plan sponsors have successfully improved participant access to lower-cost, higher-quality investments, even as the overall structure of plan menus has remained relatively consistent.”
In a separate DCIIA study for Allspring this month, 70% of participants ranked control above guaranteed income, as Private Wealth Daily reported.
The research shows that plan sponsors have successfully improved participant access to lower-cost, higher-quality investments, even as the overall structure of plan menus has remained relatively consistent.David Blanchett, head of retirement research at Prudential Financial and a portfolio manager at PGIM
Reported by the Investments desk from 401(k) Specialist. Published . Corrections