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 SPONSORS

What’s in the future for DC plans? In AB’s latest survey, over 1,000 DC plan sponsors told us what they think about their companies’ plans, their participants and the DC industry. Their thoughts are always interesting…and sometimes surprising—showing noteworthy perspectives and controversial dividing lines.

Learn More
FIDUCIARY AWARENESS IS SLIPPING
37% OF PLAN SPONSORS DON’T KNOW THEY’RE FIDUCIARIES
  • That’s a poorer showing than four years ago
  • Results are better when plans offer target-date funds
  • Training helps, too. Companies that don’t offer training have nearly half their plan sponsors unaware of their fiduciary status
WHO ARE YOU CALLING A FIDUCIARY?
Read More

DO YOU CONSIDER YOURSELF A PLAN FIDUCIARY?

Percent of Respondents

DO YOU CONSIDER YOURSELF A PLAN FIDUCIARY
Due to rounding, numbers may not sum to 100%.
Source: AB Research, 2014
MORE PLANS NEED QDIAS
20% OF PLAN SPONSORS SAY THEIR PLANS HAVE NO DEFAULT INVESTMENT
  • More so among the smallest plans (37%) than the largest (13%)
  • One in five don’t know if their default is qualified
  • Nearly half use unqualified defaults
WHO’S AT DEFAULT HERE? QDIAS NEEDED IN MORE DC PLANS
Read More

WHAT IS YOUR PLAN’S DEFAULT?

Percent of Respondents

WHAT IS YOUR PLAN’S DEFAULT
Due to rounding, numbers may not sum to 100%.
Source: AB Research, 2014
TIME TO TRANSFORM TARGET-DATES
TWO-THIRDS OF PLANS WITH TARGET-DATE FUNDS HAVEN’T UPGRADED THEM
  • They still use traditional, off-the-shelf varieties, even though:
    • >Improved options are available to most plan sizes
    • >The Department of Labor (DOL) encourages looking at customized and nonproprietary solutions
  • But a better target-date future is on plan sponsors’ radar:
    • >69% of larger plans see appeal in guaranteed-income target-date funds
    • >93% may add them in the near future
ENCOURAGING LIFETIME INCOME IN US DC PLANS
Read More

MANY PLAN SPONSORS WANT TO ADD A GUARANTEED-INCOME TARGET-DATE FUND

Percent of Respondents

MANY PLAN SPONSORS WANT TO ADD A GUARANTEED TARGET-DATE FUND
† Asked of 595 sponsors of plans with $10 million or more.
Due to rounding, numbers may not sum to 100%.
Source: AB Research, 2014
EXPAND INVESTMENT OFFERINGS
58% OF PLANS DON’T OFFER NONTRADITIONAL, OR ALTERNATIVE, INVESTMENTS
  • More than a quarter don’t offer global bonds
  • Global offerings, with exposure to multiple countries, can provide diversification and the potential for improved returns
  • Real estate investment trusts (REITs) or commodities have been overlooked by many plans, despite their adoption by mutual funds, exchange-traded funds (ETFs) and collective investment trust formats for many years
THE RIGHT FIT: GLOBAL BONDS AND DC PLANS
Read More

INVESTMENT MENUS IN TRANSITION

Percent of plans without the following asset classes

INVESTMENT MENUS IN TRANSITION
Due to rounding, numbers may not sum to 100%.
Source: AB Research, 2014
THE FUTURE STARTS WITH AUTOMATIC ENROLLMENT
55% OF DC PLANS USE AUTOMATIC ENROLLMENT
  • It’s risen sharply since 2007
  • Two-thirds of plans using it have participation rates of 70% or more
  • Automatic enrollment helps more employees feel confident about their prospects for a comfortable retirement—the top success metric of plan sponsors
IT’S GOOD TO BE BETTER
Read More

WITH AUTOMATIC ENROLLMENT, PLAN PARTICIPATION RATES ABOVE 70% ARE MORE LIKELY

DC plan participation rate by automatic enrollment status
(Percent of Respondents)

WITH AUTOMATIC ENROLLMENT, PLAN PARTICIPATION RATES ABOVE 70% ARE MORE LIKELY
Due to rounding, numbers may not sum to 100%.
Source: AB Research, 2014
ADVISORS AND CONSULTANTS MAKE A DIFFERENCE
TWO-THIRDS OF SPONSORS VALUE THE HELP OF FINANCIAL ADVISORS AND CONSULTANTS
  • Financial advisors and consultants make their mark by helping plan sponsors with reviews of fees, investments and fiduciary issues
  • A big opportunity for financial advisors and consultants:
    • >36% of plans don’t provide training for their fiduciaries
    • >Advisors can also help sponsors understand the broader mix of available investments, like global bonds, alternatives and guaranteed-income target-date funds

SERVICES THAT MATTER MOST

How important are each of the following services to you? Respondents rated importance on a scale from 1 (not at all important) to 10 (extremely important).
(% rating 8, 9, 10)

ERVICES THAT MATTER MOST
Source: AB Research, 2014

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 service mark of AllianceBernstein and AllianceBernstein® is a registered trademark used by permission of the owner, AllianceBernstein L.P.

© AllianceBernstein L.P.