Inside the Minds of Plan Sponsors

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About AB's Defined Contribution Research:

In late 2016, AB' defined contribution team conducted a web-based survey of over 1,000 plan sponsors. The survey's respondents had roughly equal representation from all plan sizes across the full universe of DC plans. So, the survey doesn't necessarily reflect the status quo for overall DC assets, which are more heavily weighted to the largest plans (referred to here as "institutional" plans).

Here is a breakdown of respondents by plan size:

Segment Plan Size Number of Respondents
Micro <$1 Mil. 202
Small $1 Mil. - $9.9 Mil. 209
Mid $10 Mil. - $49.9 Mil 194
Large $50 Mil - $199.9 Mil. 196
Institutional $250 Mil. - $500 Mil.
>$500 Mil.
95
104

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 2014.

"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.

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Are Not FDIC Insured | May Lose Value | Are Not Bank Guaranteed

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