Key takeaways:
- The core menu is the backbone of the defined contribution DC plan, yet many plans still rely on legacy funds that create unintended risks – especially for “do-it-yourself” participants.
- Traditional approaches may fail to meet the needs of participants due to isolated fund assessments that focus on style boxes, leading to overlapping exposures or coverage gaps, as well as misleading categories and unrecognized risks.
- Active management can help elevate plan menus, enhance diversification, and improve participant outcomes.
Today’s defined contribution (DC) plan is the primary retirement savings vehicle for millions of Americans. The core menu serves as its backbone – and getting it right is essential to helping participants pursue their objectives.
Core menus are critical, yet many plans still rely on legacy, stand-alone funds that create unintended risks – especially for “do-it-yourself” participants. Overlapping options and gaps in coverage can undermine diversification and participant outcomes.
