Ten considerations

We believe that, by 2025, many DC plan sponsors will adopt characteristics of the most successful pension plans to help put them on a path to create a fully funded retirement income stream for plan participants. In this article, we discuss changes we hope will soon become mainstream.

We focus on the benefits of updating investment governance structures, the need to increase savings to better fund these future "liabilities," and the importance of using more efficiently managed portfolios to increase the likelihood that employees will have successful retirement outcomes.