Managed Accounts vs. Target-Date Funds: Do Default Decisions Matter?

When it comes to helping increase employee retirement savings, getting employees enrolled in a retirement plan is a great first step. However, is simply participating really enough? Once employees are enrolled, there is so much plan sponsors can do to fine-tune their plans to encourage more saving and better retirement outcomes. Decisions such as the default deferral rate and the default investment solution (managed accounts vs. target-date funds) can potentially impact how much an employee may defer into their plan. Check out the infographic below to learn more the impact these decisions had in a recent study on 195 Schwab retirement plans.


Infographic: 3 Steps to Take Defaults to the Next Level

*For important disclosures about the information shown in this infographic, click here.

Morningstar Investment Management LLC is a registered investment adviser and subsidiary of Morningstar, Inc. The Morningstar name and logo are registered marks of Morningstar, Inc. Opinions expressed are of current date and subject to change without notice. Morningstar Investment Management shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, the information, data, analyses or opinions or their use. This commentary is for informational purposes only. The information, data, analyses, and opinions presented herein do not constitute investment advice, are provided solely for informational purposes and therefore are not an offer to buy or sell a security. Before making any investment decision, please consider consulting a financial or tax professional regarding your unique situation.

Lacey is the team¬†lead focused on B2B demand generation for Morningstar’s growing Workplace segment. This includes responsibility of marketing strategy and execution with plan sponsors and key providers to expand Morningstar’s market reach. The Workplace umbrella includes financial wellness and retirement products for employees as well as custom models and fiduciary services. With products, services and thoughtful marketing, we strive to empower companies to help employees build financial wellness today and get ready to retire when the time comes.

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