Tag Archives: S&P STRIDE Indices
How Is Your Undefined Benefit Plan Going?
I have probably been receiving them for years, but lately I have noticed opposing position papers in my inbox. Some claim Americans need a revival of defined benefit (DB) plans because of a looming retirement crisis, while others contend that defined contribution (DC) plans are doing great and there is no cause for alarm. DC…
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Monitoring Progress Toward an Income Goal
In a previous blog post, I described some benefits of having an income goal and a method of estimating one’s retirement income liability. I reviewed a hypothetical example to illustrate steps 1-2 from the list of benefits below, and I calculated a net estimated retirement liability (the portion of retirement income one must fund with…
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How to Address Retirement Income in Investment Policy Statements
Recently, the US Department of Labor (DOL) turned its attention to the adequacy of a retirement plan participant’s account balance, stimulating two debates about how to improve participant outcomes.[1] The first debate concerns how to help participants measure their “retirement readiness” in terms of income replacement at retirement. The second centers on whether there are…
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Benchmarking Retirement Withdrawal Strategies
Capital market benchmarks are, of course, widely used yardsticks of investment performance. For the production of the S&P STRIDE Index, in addition to providing performance data we also calculate hypothetical retirement income for vintages of the index that are at, or past, their target date. Hypothetical retirement income is expressed in index points, and can…
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How Benchmark Selection Can Support a Retirement Plan’s IPS
Sponsors of 401(k) plans sometimes do not approach the selection of capital market benchmarks as if it has a significant role to play in the implementation of their investment policy statements (IPSs). They may leave benchmark selection to investment managers, consultants, or service providers, but in so doing they may be missing an opportunity to…
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