A new survey indicates that a growing number of plan sponsors are at least thinking about more customized investment options for their DC plan menus.
Still, according to preliminary results from the Towers Watson 2014 Defined Contribution Survey, only about half of the 457 U.S. large- and mid-sized employers surveyed see the value of custom target-date funds (TDFs). About one in five (22%) plan sponsors have implemented a custom TDF solution, with another 27% indicating they may explore implementing one.
The survey found that a third of respondents currently delegate either all or a portion of their plans’ oversight, or may be interested in doing so.
The Towers Watson 2014 Defined Contribution Survey was conducted in June and July 2014, and includes responses from 457 large and midsize U.S. companies that sponsor a DC plan. The full survey results will be available in October.
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