Which Default Investment Is the Stickiest?

It’s no secret that target-date funds have risen above other options to become the predominant default investment choice for employers, however, there has been little research exploring the stickiness, or the likelihood of participants accepting and continuing to use the default. Differences in acceptance and usage could mean that employers may need to reconsider how they select their plan’s default investment.

In this report, you will learn:
  • The characteristics of participants who tend to accept the default investment
  • Which of the three default investments (target-risk funds, target-date funds, or managed accounts) is the stickiest
  • Why employers should consider default usage when selecting a QDIA

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