Analyzing the Value of Managed Accounts
Managed accounts provides a structured way to deliver personalized investment and savings-rate guidance within DC plans.
For the first time, we’ve examined managed accounts within the full complexity of real-world plan design and participant savings behavior—using millions of records across thousands of plans.
This new research shows that managed accounts improves projected retirement outcomes, even after considering fees and features like auto-enrollment and auto-escalation. This result is largely driven by higher sustained savings rates and disciplined portfolio construction.
The research also finds that managed accounts delivers the greatest value for younger, newer, lower- to middle-income, or self-directed participants.
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Morningstar Retirement offers research- and technology-driven products and services to individuals, workplace retirement plans, and other industry players. Associated advisory services are provided by Morningstar Investment Management LLC, a registered investment adviser and subsidiary of Morningstar, Inc.
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This commentary is for informational purposes only. The information, data, analyses, and opinions presented herein do not constitute investment advice, are provided solely for informational purposes and therefore are not an offer to buy or sell a security. Please note that references to specific securities or other investment options within this piece should not be considered an offer (as defined by the Securities and Exchange Act) to purchase or sell that specific investment. The performance data shown represents past performance. Past performance does not guarantee future results. This commentary contains certain forward-looking statements. We use words such as “expects”, “anticipates”, “believes”, “estimates”, “forecasts”, and similar expressions to identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially and/or substantially from any future results, performance or achievements expressed or implied by those projected in the forward-looking statements for any reason.