Fixing the Fixed Income Options in Defined Contribution Plans

More than $4.5 trillion of defined contribution assets are held by participants over the age of 50, the period when fixed income exposure becomes more prevalent in retirement portfolios. Jessica Leoncini, Head of Fixed Income Product Specialists, joins Retirement Director Ben Rizzuto in a discussion on what plan sponsors should consider when designing the fixed income portions of their plan menus.

Listen to our Retirement Series: Plan Talk as our experts discuss the latest news in defined contribution.

Fixing the Fixed Income Options in Defined Contribution Plans - Ben Rizzuto and Jessica Leoncini

Key Takeaways

  • When building the fixed income portion of their plan menus, plan sponsors should consider both interest rate risk and credit risk.
  • The menu of fixed income options within many plan menus could be either too simple or too complex to effectively and efficiently address those risks.
  • Plan sponsors should review and rationalize their approach to building a fixed income lineup that considers participants’ expectations at each stage of their retirement journey.

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