Defined contribution plans will start looking more like pension plans as they borrow concepts such funded ratios and create lineups with real estate, hedge funds and private equity, according to a recent blog post by Russell Investments.
By 2025, plan sponsors will as a matter of best practice conduct periodic retirement readiness studies of their plans “to better understand the collective ‘funded status’ of their participants,” the authors predict in the blog post. They give their prediction a probability rating of 5, the highest rating on a 1-to-5 scale.
