PLANADVISER - September/October 2017 - 16

Fidelity Research Reveals
How Target Date Strategies
Can Help Address Plan
Sponsors' Top Concerns
Fidelity Investments recently released the 8th edition of Plan Sponsor Attitudes, its survey
of 1,106 plan sponsors. Andrew Dierdorf, target date strategies portfolio manager at Fidelity,
discusses what the firm learned from this research and how target-date fund strategies can help
address advisor and plan sponsor concerns.
they make most frequently, and how do
these plan adjustments help participants'
reach their long-term retirement goals?
Andrew Dierdorf,
Portfolio Manager, Fidelity
PLANADVISER: Plan sponsors have
been making many plan design and
investment menu changes over the past
two years. What types of changes do
Andrew Dierdorf: Our research shows
that of the 92% of plan sponsors who
made plan design and investment menu
changes, 42% added automatic enrollment
and 30% enrolled or re-enrolled
in target date strategies. These findings
suggest plan sponsors are engaged and
continue to seek ways to improve retirement
outcomes for their participants.
We believe that these types of features
can improve outcomes, and there is an
opportunity for advisors to take a more
active and consultative approach with
plan sponsors. The top three reasons
plan sponsors make investment menu
changes are to address performance
issues, reduce fees, or adjust their plan
investment strategy. Our focus on tar7%
saver
get date strategies at Fidelity is consistent
with these learnings. The investment
process for our target date strategies
has delivered performance that
may help investors meet their retirement
goals; additionally we offer lowcost
solutions and product choice with
active, index, and blended strategies.
PA: Participants are increasingly delaying
retirement due to their lack of retirement
savings. How can plan sponsors incorporate
income replacement as an important
objective when evaluating target date
providers?
Dierdorf: We've learned that 80% of
plan sponsors have employees who are
delaying retirement because they don't
have enough in savings. This number is
meaningfully higher than many might
expect. Based on target date research
The Importance of Investment Returns and Savings Behaviors on Retirement Income1
3% saver
15% saver
122%
75%
62%
48%
25%
7%
13%
Income replacement
rate with a poor
return environment
SPONSORED SECTION
35%
20%
Income replacement
rate with a typical
return environment
Income replacement
rate with a favorable
return environment

PLANADVISER - September/October 2017

Table of Contents for the Digital Edition of PLANADVISER - September/October 2017

Onboarding New Clients
2017 Retirement Plan Adviser Survey
A Focus on the TDK Market
Reharvesting
Annuities in DC Plans
Keeping Them Happy
Laden With Student Debt
When Advisers Tout Their Own Services
PLANADVISER - September/October 2017 - Cover1
PLANADVISER - September/October 2017 - Cover2
PLANADVISER - September/October 2017 - 1
PLANADVISER - September/October 2017 - 2
PLANADVISER - September/October 2017 - 3
PLANADVISER - September/October 2017 - 4
PLANADVISER - September/October 2017 - 5
PLANADVISER - September/October 2017 - 6
PLANADVISER - September/October 2017 - 7
PLANADVISER - September/October 2017 - 8
PLANADVISER - September/October 2017 - 9
PLANADVISER - September/October 2017 - 10
PLANADVISER - September/October 2017 - 11
PLANADVISER - September/October 2017 - 12
PLANADVISER - September/October 2017 - 13
PLANADVISER - September/October 2017 - 14
PLANADVISER - September/October 2017 - 15
PLANADVISER - September/October 2017 - 16
PLANADVISER - September/October 2017 - 17
PLANADVISER - September/October 2017 - 18
PLANADVISER - September/October 2017 - 19
PLANADVISER - September/October 2017 - 20
PLANADVISER - September/October 2017 - 21
PLANADVISER - September/October 2017 - 22
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PLANADVISER - September/October 2017 - 24
PLANADVISER - September/October 2017 - 25
PLANADVISER - September/October 2017 - 26
PLANADVISER - September/October 2017 - 27
PLANADVISER - September/October 2017 - 28
PLANADVISER - September/October 2017 - 29
PLANADVISER - September/October 2017 - Onboarding New Clients
PLANADVISER - September/October 2017 - 31
PLANADVISER - September/October 2017 - 32
PLANADVISER - September/October 2017 - 33
PLANADVISER - September/October 2017 - 34
PLANADVISER - September/October 2017 - 35
PLANADVISER - September/October 2017 - 2017 Retirement Plan Adviser Survey
PLANADVISER - September/October 2017 - 37
PLANADVISER - September/October 2017 - 38
PLANADVISER - September/October 2017 - 39
PLANADVISER - September/October 2017 - 40
PLANADVISER - September/October 2017 - 41
PLANADVISER - September/October 2017 - 42
PLANADVISER - September/October 2017 - 43
PLANADVISER - September/October 2017 - 44
PLANADVISER - September/October 2017 - 45
PLANADVISER - September/October 2017 - 46
PLANADVISER - September/October 2017 - 47
PLANADVISER - September/October 2017 - A Focus on the TDK Market
PLANADVISER - September/October 2017 - 49
PLANADVISER - September/October 2017 - 50
PLANADVISER - September/October 2017 - 51
PLANADVISER - September/October 2017 - 52
PLANADVISER - September/October 2017 - 53
PLANADVISER - September/October 2017 - 54
PLANADVISER - September/October 2017 - 55
PLANADVISER - September/October 2017 - 56
PLANADVISER - September/October 2017 - 57
PLANADVISER - September/October 2017 - Reharvesting
PLANADVISER - September/October 2017 - 59
PLANADVISER - September/October 2017 - 60
PLANADVISER - September/October 2017 - 61
PLANADVISER - September/October 2017 - Annuities in DC Plans
PLANADVISER - September/October 2017 - 63
PLANADVISER - September/October 2017 - 64
PLANADVISER - September/October 2017 - 65
PLANADVISER - September/October 2017 - Keeping Them Happy
PLANADVISER - September/October 2017 - 67
PLANADVISER - September/October 2017 - Laden With Student Debt
PLANADVISER - September/October 2017 - 69
PLANADVISER - September/October 2017 - When Advisers Tout Their Own Services
PLANADVISER - September/October 2017 - 71
PLANADVISER - September/October 2017 - 72
PLANADVISER - September/October 2017 - Cover3
PLANADVISER - September/October 2017 - Cover4
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