New MetLife Study: Majority of Plan Sponsors Concerned about the Impact of Market Volatility on Near-Retirees and Retirees
MetLife's Stable Value Study reveals that 69% of plan sponsors are concerned about market volatility's impact on near-retirees, while 61% worry about its effect on retirees. Stable Value funds, offering safety and stability, remain popular with 82% of DC plan sponsors currently offering them. 84% of plan sponsors say stable value was recommended by their advisors, with 76% of advisors citing better historical returns as the top reason.
The study also highlights interest in strategies to manage volatility in Target Date Funds (TDFs). 95% of plan sponsors and 97% of advisors expressed interest in TDF solutions that reduce volatility while maintaining returns. Similarly, 94% of plan sponsors and 95% of advisors showed interest in options that enhance returns while keeping volatility constant.
Lo Stable Value Study di MetLife rivela che il 69% dei responsabili dei piani è preoccupato per l'impatto della volatilità del mercato sui quasi pensionati, mentre il 61% è preoccupato per il suo effetto sui pensionati. I fondi a valore stabile, che offrono sicurezza e stabilità, rimangono popolari con l'82% dei responsabili dei piani di previdenza (DC) che li offrono attualmente. 84% dei responsabili dei piani afferma che i fondi a valore stabile sono stati raccomandati dai loro consulenti, con il 76% dei consulenti che citano rendimenti storici migliori come il motivo principale.
Lo studio evidenzia anche l'interesse per le strategie per gestire la volatilità nei Target Date Funds (TDF). Il 95% dei responsabili dei piani e il 97% dei consulenti hanno espresso interesse per soluzioni TDF che riducono la volatilità mantenendo i rendimenti. Allo stesso modo, il 94% dei responsabili dei piani e il 95% dei consulenti hanno mostrato interesse per opzioni che migliorano i rendimenti mantenendo costante la volatilità.
El Estudio de Valor Estable de MetLife revela que el 69% de los patrocinadores de planes está preocupado por el impacto de la volatilidad del mercado en los casi jubilados, mientras que el 61% se preocupa por su efecto en los jubilados. Los fondos de valor estable, que ofrecen seguridad y estabilidad, siguen siendo populares, con el 82% de los patrocinadores de planes de contribución definida (DC) que los ofrecen actualmente. El 84% de los patrocinadores de planes dicen que los fondos de valor estable fueron recomendados por sus asesores, con el 76% de los asesores citando mejores rendimientos históricos como la principal razón.
El estudio también destaca el interés en estrategias para gestionar la volatilidad en los Fondos de Fecha Objetivo (TDF). El 95% de los patrocinadores de planes y el 97% de los asesores expresaron interés en soluciones TDF que reduzcan la volatilidad mientras mantienen los rendimientos. De manera similar, el 94% de los patrocinadores de planes y el 95% de los asesores mostraron interés en opciones que mejoren los rendimientos manteniendo constante la volatilidad.
메트라이프의 안정 가치 연구에 따르면, 69%의 계획 후원자가 시장 변동성이 가까운 은퇴자에게 미치는 영향에 대해 우려하고 있으며, 61%는 은퇴자에 대한 영향에 대해 걱정하고 있습니다. 안정 가치 펀드는 안전성과 안정성을 제공하며, 현재 82%의 DC 계획 후원자가 이를 제공하고 있으며 여전히 인기가 높습니다. 84%의 계획 후원자는 안정 가치가 그들의 고문에 의해 추천되었다고 말하며, 76%의 고문이 더 나은 역사적 수익률을 주요 이유로 언급했습니다.
이 연구는 또한 목표 날짜 펀드(TDF)의 변동성을 관리하기 위한 전략에 대한 관심을 강조합니다. 95%의 계획 후원자와 97%의 고문이 수익률을 유지하면서 변동성을 줄이는 TDF 솔루션에 대한 관심을 표명했습니다. 비슷하게, 94%의 계획 후원자와 95%의 고문이 변동성을 일정하게 유지하면서 수익률을 높이는 옵션에 관심을 보였습니다.
La Stable Value Study de MetLife révèle que 69% des sponsors de plans sont préoccupés par l'impact de la volatilité du marché sur les futurs retraités, tandis que 61% sont inquiets de son effet sur les retraités. Les fonds à valeur stable, offrant sécurité et stabilité, restent populaires avec 82% des sponsors de plans de cotisation (DC) qui les proposent actuellement. 84% des sponsors de plans affirment que la valeur stable a été recommandée par leurs conseillers, avec 76% des conseillers citant de meilleurs rendements historiques comme la principale raison.
L'étude souligne également l'intérêt pour des stratégies de gestion de la volatilité dans les fonds à date cible (TDF). 95% des sponsors de plans et 97% des conseillers ont exprimé un intérêt pour des solutions TDF qui réduisent la volatilité tout en maintenant les rendements. De même, 94% des sponsors de plans et 95% des conseillers ont montré un intérêt pour des options qui améliorent les rendements tout en maintenant la volatilité constante.
Die Stable Value Studie von MetLife zeigt, dass 69% der Planverantwortlichen besorgt über die Auswirkungen der Marktvolatilität auf nahende Rentner sind, während 61% sich um deren Auswirkungen auf Rentner sorgen. Stable Value Fonds, die Sicherheit und Stabilität bieten, sind mit 82% derzeitig angebotenen DC-Planverantwortlichen nach wie vor beliebt. 84% der Planverantwortlichen geben an, dass Stable Value von ihren Beratern empfohlen wurde, wobei 76% der Berater bessere historische Renditen als Hauptgrund anführen.
Die Studie hebt auch das Interesse an Strategien zur Volatilitätsbewältigung in Zielterminfonds (TDF) hervor. 95% der Planverantwortlichen und 97% der Berater äußerten Interesse an TDF-Lösungen, die die Volatilität reduzieren und gleichzeitig die Renditen aufrechterhalten. Ähnlich zeigten 94% der Planverantwortlichen und 95% der Berater Interesse an Optionen, die die Renditen steigern und die Volatilität konstant halten.
- 82% of DC plan sponsors currently offer Stable Value funds
- 84% of plan sponsors say stable value was recommended by their advisors
- 95% of plan sponsors and 92% of advisors view stable value funds as valuable for participants seeking a safe haven
- 95% of plan sponsors and 97% of advisors are interested in TDF solutions that reduce volatility while maintaining returns
- 94% of plan sponsors and 95% of advisors are interested in TDF options that enhance returns while keeping volatility constant
- 69% of plan sponsors are concerned about market volatility's impact on near-retirees
- 61% of plan sponsors are concerned about market volatility's impact on retirees
- Only 12% of plan sponsors have implemented strategies to manage volatility in target date funds
“Stable Value has a nearly 50-year history as a capital preservation option in DC plans and provides protection against market volatility in uncertain environments,” says Tom Schuster, senior vice president and head of Stable Value and Investment Products with MetLife. “This is essential for those participants near or at retirement looking for earnings stability and liquidity, along with a guarantee of principal and interest.”
Stable Value: A DC Plan Mainstay
Stable Value remains a popular capital preservation option among plans sponsors, with
Eighty-four percent of plan sponsors say stable value was recommended by their DC plan’s investment or financial advisor. Eight in 10 advisors (
“Plan sponsors and advisors recognize and appreciate stable value’s long-term historical performance across all market cycles,” says Schuster. “Because of this compelling track record, stable value remains a popular choice and its outlook is strong.”
According to the Study, a majority of plan sponsors and advisors (
Stable Value and Target Date Funds
As target date funds (TDFs) remain popular within DC plans, a critical consideration is whether participant savings in these funds are adequately protected from market volatility. The Study found that more than a third of plan sponsors,
“The good news is that there are new solutions available in the market that apply the volatility smoothing principles of stable value to TDFs,” says Warren Howe, national director, Stable Value Markets. “These solutions allow plan sponsors to optimize the risk/return profile of their TDFs by either lowering volatility while maintaining returns or enhancing returns while maintaining volatility.”
When presented with an example of the first approach—the TDF provider delivers comparable returns, net of fees, while reducing volatility by approximately
“Plan sponsors can apply these strategies to custom TDFs to reduce the fund’s volatility, particularly for participants who are near or in retirement,” says Howe. “By doing so, they can create better retirement outcomes.”
About the Study
MetLife commissioned Greenwald Research to conduct surveys of plan sponsors and advisors between February 26 and March 21, 2024. A total of 238 interviews were completed among plan sponsors who offer a 401(k), 457 or 403(b) plan. Assets under management for plans included in the study ranged from under
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240723056918/en/
MetLife Contact:
Judi Mahaney
jmahaney@metlife.com
646-238-4655
Source: MetLife, Inc.
FAQ
What percentage of plan sponsors are concerned about market volatility's impact on near-retirees according to MetLife's Stable Value Study?
How many DC plan sponsors currently offer Stable Value funds as per the MetLife study?
What percentage of plan sponsors view stable value as a good capital preservation option due to its long-term historical performance?
How many plan sponsors are interested in TDF solutions that reduce volatility while maintaining returns?
What percentage of advisors recommend stable value funds due to better historical returns compared to other options?
