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According to recent data, sponsors of defined contribution plans are becoming more attuned to the retirement needs of their members and are reacting to improve retirement outcomes for them, writes James Comtois for Pensions & Investments.
A survey by J.P. Morgan Asset Management (JPM) reveals that 24 per cent of DC sponsors say that “ensuring sufficient income in retirement” is the main function of their plan, “a figure that has doubled since 2013,” he writes.
“DC plan sponsors are taking advantage of innovative design features and investment vehicles to strengthen their plans. Of the sponsors surveyed, 64 per cent have implemented auto enrollment; 62 per cent offer target-date funds; 50 per cent have implemented auto escalation; and 13 per cent have either conducted or plan to conduct a plan re-enrollment,” writes Comtois.
“Significant progress has occurred over the last four years,” Catherine Peterson, managing director and global head of insights programs at J.P. Morgan Asset Management, is quoted saying. “The entire plan population is now where large plans were in 2015. So we’re seeing broad progress on many fronts.”
More: DC sponsors “definitely concerned about outcomes.”

ARIA provides a forum for an informed discussion on retirement income adequacy, and other related issues, including pension and retirement coverage, and defined benefit pension plans – ARIA pensions blog, 12 Dunlop Street, Barrie, ON, L4N 1V6 – sitemanager@ariapensions.ca

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