Looking Back: Key DC Plan Developments in 2018WealthManagement.com
January 09, 2019
2018 was characterized by two major themes: a persistent cost sensitivity for DC plans and an increased appetite for both investment solutions and retirement insights that address participants’ desire for better retirement outcomes according to Cheri Belski from T. Rowe Price.
Fiduciary awareness led to heightened cost sensitivity in 2018. Even though total plan costs have been steadily declining for the past 15 years, the perception among plan sponsors does not reflect that. Advisors had to communicate the value of each component in a plan and battle the misperception that “cost” and “value” are the same thing. We’ve seen many advisors address this concern by converting target date funds to lower cost CIT vehicles.