Twenty percent of retirement plans don't have a default investment, according to a survey of more than 1,000 defined contribution plan sponsors.
If that's not shocking enough, the smallest plans are nearly twice as likely (37 percent) as respondents as a whole to lack one. Among the largest plans, just 13 percent do not have a default investment.
All of this is according to a survey from AB Global, which also found that about half of its survey respondents don't have a qualified default investment alternative (QDIA), despite the fact that QDIAs provide a "safe harbor" for plan sponsors under the Employee Retirement Income Security Act.
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