Research and Markets: The Retirement Plan Solution: The Reinvention of Defined Contribution.
The Retirement Plan Solution provides a clear solution to the problems that have popped up with the defined contribution plan. The authors' solution is twofold. The first addresses the accumulation process in which the retiree is making and saving his or her money during the working years. Here, workers are earning much, much less than they could be if they were given the right education and investment tools. Many are over-confident, are projecting the past, and are simply confused by too much choice. Instead of earning the returns that the market provides, they earn much less, purely because of their behavioral tendencies. The authors identify a few solutions to this problem, including "target date" investment plans as a default option that aims at spreading risk sensibly for the average participate over the participant's working lifetime. The second solution addresses the decumulation process in which the retiree is spending his or her money during the retirement years. Here, the problem stems from the fact that the payout from a DC plan is in one lump sum, after which the retiree is left to his or her own devices. Faced now with the dual problem of managing assets and making the assets last for an uncertain, and increasing, longevity span, retirees are even less well informed than during the accumulation phase. Again, the authors suggest more education and by a changed focus in the periodic reports provided to participants.
Key Topics Covered:
* CHAPTER 1: DC Version 2.0.
* PART ONE: The Dynamics of the Retirement Plan.
* CHAPTER 2: More than You Ever Wanted to Know about Life Expectancy.
* CHAPTER 3: Retirement Is Expensive.
* CHAPTER 4: Investment Returns Are All-Important.
* CHAPTER 5: Sustainable Spending.
* PART TWO: Opportunities in the Accumulation Phase.
* CHAPTER 6: Save More.
* CHAPTER 7: Limit Leakage.
* CHAPTER 8: Invest Better.
* CHAPTER 9: Reduce Fees.
* PART THREE: We Need the Right Sort of Education.
* CHAPTER 10: Why the Waste? Because We're Only Human.
* CHAPTER 11: Financial Education.
* PART FOUR: Other Ways of Running Defined Contribution Plans.
* CHAPTER 12: Case Study--Australia.
* CHAPTER 13: Three Defined Contribution Plan Models.
* CHAPTER 14: Collective Defined Contribution.
* PART FIVE: The Perspective of the Individual in Decumulation.
* CHAPTER 15: The First Dial: Your Personal Spending Policy.
* CHAPTER 16: The Second Dial: Your Longevity Protection Policy.
* CHAPTER 17: The Third Dial: Investment Policy.
* CHAPTER 18: Product Innovation with Decumulation in Mind.
* PART SIX: The Plan Sponsor's Role.
* CHAPTER 19: Defined Contribution Plan Governance.
* CHAPTER 20: Defined Contribution Plan Effectiveness.
* CHAPTER 21: The Defined Contribution Plan Sponsor's Role in Decumulation.
* About the Authors.
For more information visit http://www.researchandmarkets.com/research/7b8f33/the_retirement_pla
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|Date:||Jul 28, 2009|
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