Survey: Target Date Funds Get a Second Look

January 21, 2017

Poll results show the latest trends. Have you examined your Target Date offering recently?

Getting the Target Date Fund Decision Right

The success of DC plans could ultimately depend on the effectiveness of Target Date Funds (TDFs). How are proactive plan sponsors creating a sophisticated retirement plan for participants to adequately save for retirement? In Part two of our three-part DC research series, we reveal how plan sponsors portray the outlook for DC plans and the role TDFs will play.

Key findings:

  1. Plan sponsors are offering non-recordkeeper TDFs.
    62% of those surveyed felt it is a good idea to separate asset management services from recordkeeping, highlighting the trend toward institutional investment products.
  2. Plan sponsors want to improve participation percentages.
    58% of all poll respondents offering TDFs said ideally more of their participants would use the TDFs they offer.
  3. Plan sponsors believe they should provide high-quality investment options.
    93% of polled sponsors said they have a fiduciary responsibility to make certain every effort is made to provide the participants with the best investment options possible.       

Survey Results: Target Date Funds Get a Second Look

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Legal Note

Information provided by SEI Investments Management Corporation (SIMC), a registered investment adviser and wholly owned subsidiary of SEI Investments Company.