Three Fiduciary Risks
Three Risks for Plan Sponsors to Worry About: Yesterday, Today and Tomorrow
It's a new world of retirement: financial markets are uncertain, the workforce is shrinking, people are living longer and increasingly relying on their 401(k) plan to get them through retirement. The problem DC plan sponsors face is that what's worked in the past may not work today.
BlackRock is here to help with thought leadership, experienced insight and innovative products that help meet emerging fiduciary risk, whether its source is from yesterday's best practices, today's environment or tomorrow's challenges. We will help you recognize the opportunities to create stronger DC plans that create more secure participant retirements.
Yesterday's Risk: The Growing Risk of Low Risk
Established best practices for low risk solutions, including stable value and money market funds, are under stress, revealing new risks just as conservative participants are turning to them for safety. BlackRock can work with you to explore new approaches that reduce or eliminate counterparty risk, create greater transparency or increase flexibility and liquidity.
Today's Risk: Is Your QDIAs Meeting Its Objective
The QDIA universe is far more complex than it was just a few years ago. There's more choice, with a wider range of objectives – and as recent history shows a significant spread in returns among funds with the same target dates. How well do you understand your target date fund's objective? What are the right questions to ask a target date fund provider? And finally, is your current target date fund right for your plan – and is it meeting its objective?
Tomorrow's Risk: The Case for Income
Defined contribution's biggest challenge is how to turn participants accumulated balances into a reliable stream of lifetime income. The urgency to find solutions is only going to increase as retirement income moves to the front of the national agenda. Participant surveys show increasing interest in in-plan income solutions, and regulatory scrutiny may lead to imposed solutions if the DC market place doesn't rise to the challenge. The greatest risk may be not stepping up and choosing a solution.
Meet Chip Castille
Chip Castille, is Managing Director and head of BlackRock's US & Canada Defined Contribution Group. Mr. Castille was part of the development team that created the industry's first target date funds, the LifePath Portfolios, in 1993.
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