DC 20/20: Pathways to a Secure Retirement

Abstract

This article proposes ways to improve retirement outcomes for defined contribution plan participants in terms of three key drivers: savings rates, investment strategies, and post-retirement distributions. Levers include raising saving rates through plan automation and other means; enhancing investment returns through active management; making asset allocation structures more flexible; redesigning investment menus to incorporate inflation and recession risks; and encouraging consideration of deferred fixed annuities to ensure late-in-life financial security.

Keywords: Active Management, Asset Allocation, Defined Contribution, Glide Path, Pension Fund