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February 2022 / RETIREMENT INSIGHTS

Making the Benefit Connection

In the discussion below, our multi-asset team details the importance of defined benefit plans in glide path evaluation.

Many employers have made changes to their overall retirement plan offerings over the years, resulting in a wide range of defined benefit (DB) and defined contribution (DC) plan access options across different participant groups. Some employers maintain open and ongoing DB plans, others have closed their plans to certain participants, and some have decided to freeze these benefits for participants entirely. In this webinar, we explore how DB plan access should impact sponsor decisions related to DC plan glide path evaluation, including:

  • Overview of our framework for evaluating glide paths holistically
  • Discussion of how to account for differing DB access across a single employee population
  • Understanding how the wealth provided by the DB plan is often offered at the opportunity cost of a richer DC plan
  • Discussion of the impact of various DB plan designs on resulting suitable glide paths
  • Investigation of employee savings behavior and retirement age decision-making on glide path suitability.

Important Information

This material is being furnished for general informational and/or marketing purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, nor is it intended to serve as the primary basis for an investment decision. Prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.

The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.

Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources’ accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date written and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.

The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request. It is not intended for distribution to retail investors in any jurisdiction.

This material was prepared for use in the United States for U.S.-based plan sponsors, consultants, and advisors, and the material reflects the current retirement environment in the U.S. It is also available to Canadian-based plan sponsors, consultants and advisors for reference. There are many differences between the two nations’ retirement plan offerings and structures. Therefore, this material is offered to accredited investors in Canada for educational purposes only and does not constitute a solicitation or offer of any product or service.

USA—Issued in the USA by T. Rowe Price Associates, Inc., 100 East Pratt Street, Baltimore, MD, 21202, which is regulated by the U.S. Securities and Exchange Commission. For Institutional Investors only.

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202201‑2012173 (2/2022)