2019 Trends & Experiences in Defined Contribution Plans

September 20, 2019

2019 Trends & Experience in Defined Contribution Plans
Changes in the retirement
plan landscape

Defined contribution (DC) plans form the retirement backbone for millions of American workers, with more than 85% of employers saying that the DC plan is their primary retirement plan—an increase from 67% only a decade ago.

Below we’ve highlighted three trends from the 2019 Trends & Experience in Defined Contribution Plans report that show how DC plans continue to be enhanced, helping workers contribute more money to the plan, invest their balances wisely and use their accounts for retirement income.

Contributing

Decreasing the friction points to getting money in the plan

74%

of companies have automatic enrollment

Up from 58% in 2015

21%

of companies with automatic enrollment report opt-out rates of <1%

Growing

Making investing more personalized and simpler than ever before

2/3rds of plans have managed accounts

99% of employers ranked managed accounts as effective

40% of companies use white labeling for at least some funds

Using

Moving from “savings” plans to “retirement” plans

92%

of plans have a distribution option other than an all-or-nothing lump sum

78%

of plans have partial distributions

75%

of plans have installment plans

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