In its most recent report on target-date fund (TDF) adoption in defined contribution (DC) plans, Vanguard reported that 42 percent of its total plan contributions are being allocated to TDFs.
In just five years, from 2009 through 2014, the portion of all contributions allocated to Vanguard TDFs doubled – from 21 percent to 42 percent. Virtually all Vanguard DC plans (97 percent) have adopted a Qualified Default Investment Alternative (QDIA). Among those plans, TDFs were the QDIA choice in 94 percent.
Of course, not every 401(k) participant chooses to use a QDIA or TDF. In fact, most experienced investors select their own plan investments or rely on a professional advisor.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
