2019 Trends & Experience in Defined Contribution Plans
: Changes in the retirement
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.
Decreasing the friction points to getting money in the plan
of companies have automatic enrollment
Up from 58% in 2015
of companies with automatic enrollment report opt-out rates of <1%
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
Moving from “savings” plans to “retirement” plans
of plans have a distribution option other than an all-or-nothing lump sum
of plans have partial distributions
of plans have installment plans