AB
showing 1 - 8 of 864 results
{{maindata.mainmenu}}

{{maindata.submenu.desc}}

{{maindata.submenu.col_1.type}}

{{maindata.submenu.col_1.title}}

{{maindata.submenu.col_1.desc}}

{{maindata.mainmenu}}
{{maindata.submenu.mainnav.title}}
{{maindata.submenu.resource.title}}
{{maindata.submenu.dashboard.title}}
INSIDE THE MINDS OF PLAN PARTICIPANTS

INSIDE THE MINDS OF PLAN PARTICIPANTS

Who’s ready, who’s willing, who’s able...who’s not. We queried over 1,000 workers to help us understand their attitudes toward, and behaviors regarding, retirement savings. What we uncovered can help companies reach higher plan participation, engage participants more effectively and help them achieve greater retirement confidence and better outcomes.

Learn More

WHO’S WHO AMONG PARTICIPANTS

Link

WE’VE IDENTIFIED THREE DISTINCT INVESTOR PERSONAS

  • CAPABLE, CONFIDENT INVESTORS
  • EAGER, YOUNG, UNAWARE PARTICIPANTS
  • CONSERVATIVE, CAUTIOUS SAVERS

WHICH TYPE OF INVESTOR ARE YOU?

TAKE THE SURVEY

KNOWLEDGE OF THE FINANCIAL MARKETS, WITH THE DISCIPLINE TO INVEST WISELY

CAPABLE INVESTORS
Source: AB Research, 2015

KNOWLEDGE OF THE FINANCIAL MARKETS WITH DISCIPLINE TO INVEST WISELY

CAPABLE INVESTORS
As of November 2015
Source: AB

RETIREMENT CONFIDENCE IS CHRONICALLY LOW

Link

42% OF WORKERS STATE THE KEY REASON IS NOT SAVING ENOUGH

  • Workers’ top concern remains the same: They don’t think they’ll have enough money to live as they do now
  • One-fourth of them plan to delay retirement and, curiously, nearly a quarter say they’ll receive a pension
  • 32% say they will continue to work part time

FEW WORKERS SEE A COMFORTABLE RETIREMENT AS A REALITY

How confident are you that you’ll have a comfortable retirement?

FEW WORKERS SEE A COMFORTABLE RETIREMENT AS A REALITY
% of employees who are confident/very confident
Source: AB Research, 2015

FINANCIAL LITERACY: TOO MANY UNKNOWN KNOWNS

Link

HIGHER ENGAGEMENT, CONTRIBUTION RATES AND CONFIDENCE ARE AT STAKE

  • We asked eight simple questions about investing, and many of our respondents didn’t fare too well
  • Two-thirds of respondents got only zero to five right answers, with only 12% answering all eight questions correctly
  • In the example to the right, less than half of all respondents knew the answer, but the “older and wiser” group (age 65–75) did far better (72% correct) than the younger groups

CONSIDERING A LONG TIME PERIOD

(for example 10 or 20 years), which asset normally gives the highest return?

FINANCIAL LITERACY

MISINFORMATION PLAGUES TARGET-DATES

Link

23% OF PARTICIPANTS DON’T KNOW IF THEY ARE IN A TARGET-DATE FUND OR NOT

  • 34% of target-date users incorrectly believe that their target-date funds automatically “guarantee you’ll meet your income needs in retirement”
  • More target-date users in 2015 than in 2014 incorrectly equate target-date funds with guarantees—something almost no retirement plan investment options can boast
  • Target-date users most frequently say these funds keep them appropriately invested to, and through, retirement

MISPERCEPTIONS RISING AMONG TARGET-DATE USERS

Percent of respondents answering incorrectly (among those who know whether or not they use target-date funds [TDFs])

TARGET-DATE USERS
Source: AB Research 2014, 2015

LIFETIME INCOME: THE PERENNIAL WISH-LIST FAVORITE

Link

69% STATE “A STEADY STREAM OF INCOME” AS A TOP FEATURE THEY WOULD LIKE TO SEE IN THEIR DC PLAN

  • Guaranteed income topped employees' wish list of retirement plan features in our past seven surveys
  • 54% of plan participants would be likely to invest in a guaranteed-income target-date fund, and 78% of nonparticipants agree
  • Nearly 90% of all employees would keep some or all of their contributions in a guaranteed-income target-date fund if their employer automatically enrolled them in it

HOW WOULD YOU FEEL...

... IF YOUR EMPLOYER AUTOMATICALLY INVESTED YOUR CONTRIBUTIONS INTO A TARGET-DATE FUND WITH A GUARANTEED-INCOME FEATURE?

% of plan participants and nonparticipants

LIFETIME INCOME
Source: AB Research, 2015

About AB’s Defined Contribution Research.

Early in 2014, AB’s defined contribution team conducted a web-based survey of over 1,000 DC plan sponsors. The survey’s respondents comprised relatively equal representation from all plan sizes across the full universe of DC plans. Thus, the survey does not necessarily reflect the status quo for overall DC assets, which are more heavily weighted to the largest plans (herein referred to as “institutional” plans).

Here is a breakdown of respondents by plan size:

Segment Plan Size Number of Respondents
Micro <$1 Mil. 204
Small $1 Mil.–$9.9 Mil. 211
Mid $10 Mil.–$49.9 Mil. 196
Large $50 Mil.–$249.9 Mil. 198
Institutional $250 Mil–$500 Mil.
>$500 Mil.
96
105

The goal was to understand how plan sponsors feel about the current state of their companies’ plans, their participants and the DC industry. This includes the key findings from our survey. It comprehensively updates the research we last conducted in 2011.

“Target date” in a fund’s name refers to the approximate year when a plan participant expects to retire and begin withdrawing from his or her account. Target-date funds gradually adjust their asset allocation, lowering risk as a participant nears retirement. Investments in target-date funds are not guaranteed against loss of principal at any time and account values can be more or less than the original amount invested—including at the time of the fund’s target date. Also, investing in target-date funds does not guarantee sufficient income in retirement.

Note to All Readers: The information contained herein reflects, as of the date hereof, the views of AllianceBernstein L.P. (or its applicable affiliate providing this publication) (“AB”) and sources believed by AB to be reliable. No representation or warranty is made concerning the accuracy of any data compiled herein. In addition, there can be no guarantee that any projection, forecast or opinion in these materials will be realized. Past performance is neither indicative of, nor a guarantee of, future results. The views expressed herein may change at any time subsequent to the date of issue hereof. These materials are provided for informational purposes only and under no circumstances may any information contained herein be construed as investment advice. AB does not provide tax, legal or accounting advice. The information contained herein does not take into account your particular investment objectives, financial situation or needs and you should, in considering this material, discuss your individual circumstances with professionals in those areas before making any decisions. Any information contained herein may not be construed as any sales or marketing materials in respect of, or an offer or solicitation for the purchase or sale of, any financial instrument, product or service sponsored or provided by AllianceBernstein L.P. or any affiliate or agent thereof. References to specific securities are presented solely in the context of industry analysis and are not to be considered recommendations by AB. This is not intended to be legal advice (and should not be relied upon as such) but just a discussion of issues. Plan sponsors should consult with their legal advisors for advice regarding their particular circumstances.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

© AllianceBernstein L.P.