Participants in 401(k) plans and plan sponsors may be challenged to understand whether their future savings and investment plans, combined with the range of likely market outcomes, are consistent with their planned retirement income. The attractiveness of potential modifications (higher savings, lower retirement spending, deferred retirement, etc.) can be evaluated in the same manner with a consistent process allowing participants to evaluate the impact of different choices that will lead them to a promising plan.

In this article, we investigate a simple approach to compare the ambitiousness of the participant’s plan with the reality of growth available from existing target date solutions.

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