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:
||Number of Respondents
||$1 Mil.–$9.9 Mil.
||$10 Mil.–$49.9 Mil.
||$50 Mil.–$249.9 Mil.
||$250 Mil–$500 Mil.
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.
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