Participants' reluctance to allocate all of their 401(k) assets into target date and target risk funds signals a communication problem, according to Invesco's bi-annual analysis of the defined contribution market.
The report cites Aon Hewitt's research showing 68 percent of plan participants have money invested in the qualified default investment alternatives.
But the average allocation is only 69 percent of assets, indicating to both Aon and Invesco's analysis that participants are combining TDFs and target risk funds with other investment options.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
