From the Field
Plan sponsor, plan sponsor, make me a match
Savings behavior impacts glide paths more than defined contribution plan match formulas.
2024-05-13 08:52
Justin Harvey, ASA, CFA, Head of Analysis, Multi‑Asset Solutions
Adam Langer, CFA, Senior Quantitative Investment Analyst
Key Insights
  • Our modeling work found that participant savings behavior had a greater impact on glide path design than employer match generosity did.
  • The richness of the match formula shifted the optimal glide path equity allocation by less than 5% at all ages, even in the absence of a defined benefit plan.
  • These findings support the idea that participants ultimately own their outcomes when their retirements are supported primarily by defined contribution plans.

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