TY - JOUR T1 - Variation of Retirement Income from 401(k) Plan Sponsors’ Target-Date Fund Choices? JF - The Journal of Retirement SP - 20 LP - 34 DO - 10.3905/jor.2016.3.3.020 VL - 3 IS - 3 AU - Youngkyun Park Y1 - 2016/01/31 UR - https://pm-research.com/content/3/3/20.abstract N2 - This article examines how the variability of target-date fund (TDF) participants’ retirement income resulting from plan sponsors’ TDF choices can be reduced by a qualified automatic contribution arrangement (QACA) that reflects plan demographics. Using Monte Carlo simulations, the article finds that a QACA where a maximum employee contribution rate is based on plan demographics can not only increase participant retirement income (measured as a success rate or probability of achieving a target replacement rate), but also reduce its variability.TOPICS: Retirement, simulations ER -