Get more! Sign up for PLANSPONSOR newsletters.
Benefits June 17, 2009
Vanguard Sees Continued Explosion in Target-Date Fund Usage
June 17, 2009 (PLANSPONSOR.com) - The Vanguard
Center for Retirement Research reported that the use of
target-date funds in defined contribution plans administered
by Vanguard continues to grow rapidly.
Reported by Fred Schneyer
A Vanguard news release said at the end of 2008, seven in ten such plans offered a target-date fund, and more than one-third of participants opted for them.
The report notes that three factors were fueling the adoption of target-date funds by plan sponsors and participants:
- the funds’ simplified approach to investment decisionmaking;
- the growing use of automatic enrollment within plans; and
- target-date funds’ designation as a qualified default investment option under the Pension Protection Act of 2006.