Conservative Options in Defined Contribution Plans

March 2017
Capital preservation options are widely utilized in DC plans and, in fact, data shows participants can over-allocate to these options. For some, capital preservation is the ultimate “sleep at night” option. For others, it’s a conservative strategy designed to limit risk to principal and preserve purchasing power of assets. There is an evolving spectrum of options in the marketplace to address various participants’ needs and there are several timely reasons why plan sponsors should revisit these options within their plan line-up. This Insights evaluates the most heavily represented Defined Contribution capital preservation plan options and provides a framework for constructing and communicating the most appropriate line-up for participants.


Download PDF