Made to Stick: The Drivers of Default Investment Acceptance in Defined Contribution Plans

Past research suggests participant demographics can have a significant impact on the acceptance and continued usage of default investments in defined contribution (DC) plans, but little is known about the affect of fund attributes. In this paper, we explore how key characteristics of a plan’s default target-date fund may impact a participant’s decisions to accept and remain in a default investment.

In this paper, you will learn:
  • How default investment acceptance varies by fund attributes
  • A refresher of the relationship between participant demographics and default investment acceptance
  • Key considerations when choosing between potential default investment options
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