RT Journal Article
SR Electronic
T1 DC Plans: International Experience and the Need to Address
Retirement Security
JF The Journal of Retirement
FD Institutional Investor Journals
SP 71
OP 88
DO 10.3905/jor.2014.2.1.071
VO 2
IS 1
A1 Stacy Schaus
A1 Will Allport
A1 Justin Blesy
YR 2014
UL https://pm-research.com/content/2/1/71.abstract
AB Despite having participants with similar retirement-outcome goals, the three countries with the greatest reliance on defined-contribution (DC) plans—Australia, the United States, and the United Kingdom—have adopted dramatically different approaches to plan design and investment management. Typical glide paths in these countries, though, tend to have one thing in common: They may leave investors exposed to excessive risk. The authors contrast the key features of DC plans in these countries and call for a more thorough analysis of the risk of loss, as well as the sources of risk, in investment defaults. Glide-path design should focus on desired outcomes, respect risk-capacity limits, and incorporate risk diversification, inflation hedging, and market-shock protection strategies.TOPICS: Retirement, developed, risk management