What is Morningstar® Retirement Manager℠?
Morningstar Retirement Manager is a platform designed to provide your employees with a personalized retirement plan. With employees focused on today’s priorities, it can be hard for them to find the time and motivation to focus on planning their financial futures. Your employees can access Morningstar Retirement Manager as part of their company’s overall benefits package. Participants can log into Morningstar Retirement Manager online, so they can use it just about anywhere. It takes about five minutes to get started with setting up a plan—and that plan will be personalized to the participant’s unique situation.
How can Morningstar Retirement Manager help?
Morningstar Retirement Manager is designed to make it easier for your employees to prepare for retirement. It may also add a competitive edge to your benefits packages that many prospective employees value. Powered by Morningstar Investment Management LLC, the service assigns a portfolio to each individual participant, and our research has shown it has the potential to lead to better outcomes for employees1. Morningstar Retirement Manager can help you differentiate your retirement plan by extending your benefits offering beyond target-date funds and other, less-personalized options. Plus, you can apply the work you’ve already done: Our customized portfolios are built using the investments from your existing lineup.
How is Morningstar Retirement Manager different from a target-date fund?
When an investor chooses a target-date fund, they choose one fund out of a series that corresponds to their expected retirement date. The fund's portfolio has been built by a fund manager to apply broadly to all investors expecting to retire within a set time frame (i.e. 5 or 10 years.) Morningstar Retirement Manager builds personalized portfolios based on the financial information you, your plan provider, or employee provides and offers savings recommendations, retirement date recommendations and, through an optional add-on service, can provide advice for the employee during the in-retirement phase.
Is Morningstar Retirement Manager available as a qualified default investment alternative (QDIA) for plans?
Yes, Morningstar Retirement Manager is a QDIA option for plans, according to the definitions provided by the Pension Protection Act of 2006.
Does Morningstar Retirement Manager help me fulfill my fiduciary obligation to my employees?
Yes. Morningstar Investment Management acts as a 3(21) fiduciary to participants in the Morningstar Retirement Management advice service and a 3(38) fiduciary in our discretionary managed account service. Because we act in a fiduciary capacity to the participant, the managed account service can help you fulfill some of your fiduciary obligations to your participants.
How can I inform my participants about Morningstar Retirement Manager?
Participant education is extremely important to ensure participants engage and take advantage of the services provided to them. Ask your plan provider for educational materials to distribute, which provides information on how to use the platform, and where and how to set up their account. Circulate materials by hand, email, or by posting on your intranet. Your provider may also provide digital workshops for participants, which are 30-minute educational online presentations. If available, these digital workshops can help educate your participants on the service and allow them to ask questions during the Q&A section of the presentation.