PT  - JOURNAL ARTICLE
AU  - Youngkyun Park
TI  - Variation of Retirement Income from 401(k) Plan Sponsors’ Target-Date Fund Choices?
AID  - 10.3905/jor.2016.3.3.020
DP  - 2016 Jan 31
TA  - The Journal of Retirement
PG  - 20--34
VI  - 3
IP  - 3
4099  - https://pm-research.com/content/3/3/20.short
4100  - https://pm-research.com/content/3/3/20.full
AB  - 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