Private assets are gaining traction in many portfolios, as investors seek new frontiers given a more challenging market landscape. Returns of traditional asset classes in the years ahead are likely to be lower on an inflation-adjusted basis, and public markets offer fewer options for diversification today, at a time when managing risk is becoming increasingly important.

Steady income and access to remaining assets are key considerations for DC plan sponsors.

It can be a tall task to compare diverse lifetime income solutions. Applying a comprehensive framework may enable a level playing field.

Secure lifetime income is a top wish-list item for defined contribution plan participants, and it has benefits for plan sponsors too. But there are very different ways to deliver it.

Lifetime income solutions are high on the wish lists of defined contribution (DC) plan participants, with the certainty of a guaranteed lifetime income stream ranking as the top feature in our surveys over the past decade.

Inflation has been on the rise recently, raising concerns about long-run inflation and its impact on the spending power of those who can least afford it—investors approaching or already in retirement.

Target-date portfolios that use carefully chosen defensive equities are best equipped to protect from coronavirus market turmoil and volatility in general.

The turmoil in the first quarter of 2020 reinforced the importance of rebalancing in target-date design. As we see it, a finely tuned, systematic approach can help keep emotions in check and risk under control—benefits that translate to many types of multi-asset solutions.

With market returns expected to be lower going forward, target-date funds that invest in passively managed underlying components are at risk of underdelivering. We think diversifying beyond traditional asset classes and tapping alpha opportunities with a multi-manager structure can increase the chances of success.

Rising US interest rates could pose a challenge for target-date funds (TDFs) that concentrate on “core” US fixed-income exposure. Diversifying across a broad range of bond markets and strategies can create a cushion in a rising-rate environment.

For decades, there were two things that workers saving for retirement could count on: falling interest rates and low inflation. Change may be afoot. We think target-date funds should take notice.