Defined Contribution

Challenge accepted

Retirement has changed. Workforce demographics have become more complex, pensions are rare, people are living longer, and workers are challenging conventional thinking about retirement. Employers are recognizing the need to advance their defined contribution (DC) plans with improved investment solutions, more effective plan designs, and the recognition that the plan’s true goal is financial well-being, not just retirement readiness.

Defined contribution plan sponsors are looking for partners that can help them rethink their DC plan along with their changing objectives. We have a team of experts dedicated to all aspects of the DC ecosystem, including investing, research, plan design, and employee well-being and engagement. We invite you to join us in accepting the challenge to reshape the future of retirement.

Passion plus purpose

Head of DC Nate Miles and Head of Strategic Business Segments Fredrik Axsater talk about how people’s aspirations for retirement are inspiring new solutions for the future.

Defined Contribution

Nate Miles, CFA: I think one of the things that I’ve heard from our clients or that I see at an industry level is that we really haven’t made much progress, that innovation takes an incredibly long time in the DC space. And what we’ve started to recognize about our clients and tried to make them aware is they’ve actually made some tremendous progress over the past several years. The auto escalation gets you really in the plan, auto enrollment gets them saving more, auto referral into the QDIA, the Qualified Default Investment Alternative, gets them to diversify their assets. And so we really feel like on the accumulation side we know the recipe for success.

If you contrast that with the other side, so the kind of in retirement time period, really don’t have any of those automatic features kind of in existence or in play and plan sponsors are starting to think about how they introduce those types of features in the retirement side of the equation for the benefit of their employees.

Another trend that we’re seeing that I think falls neatly within this more tailored solution kind of bracket is the move towards ESG. We’ve done some primary research and we’ve found that employees are significantly more engaged when their DC plan incorporates ESG solutions. We’re thinking through what that means for DC plan options and how to incorporate that in to tomorrow’s DC plan menu.

Fredrik Axsater, CFA: I think that retirement is very personal. It affects all of us. I would challenge almost anyone saying this to say that, can't you think of a friend or a colleague, a family member, that hasn't asked these basic questions: How much do I need to save? When can I retire? How much money can I afford to get an income in retirement? And just the complexity that is inherent in answering those basic, important questions. And that's really what we're about. We're trying to solve that challenge and answer that call. That is so important for almost everyone.

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Related insights

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Joining forces

If you’re like many of our clients, you want to find new approaches to strengthening your employees’ financial resiliency. Many employers have taken bold steps to improve DC plans with automation, age-appropriate diversified default investments, and more effective communications.

We’re looking at ways to rethink financial well-being, to design and build DC plan improvements, and to improve your employees’ confidence in their ability to retire with dignity. We invite you to join us as we answer the call to build financial resiliency for American workers.

Sharing our expertise

We believe retirement is ripe for innovation, from the investments in your plan to the ways you engage with employees. We can tap a broad range of experts to bring the right people, insights, and solutions to the table.

Dynamic investment expertise

We have diverse capabilities to build investment solutions for your default fund and your core menu and custom solutions designed for your unique employee base.

Advances through collaboration

We partner frequently with plan sponsors and stakeholders such as consultants and academics, to tackle big challenges, to help optimize your plan design, increase employee engagement, and deliver a smooth implementation experience.

Deep experience and long history

We are a proven leader in defined contribution, with more than $114 billion in assets under management* and a 20-year track record of delivering defined contribution solutions.

*As of December 31, 2018. AUM includes $80B from Galliard Capital Management, an investment advisor that is not part of the WFAM trade/GIPS firm.

Investment intelligence

We provide a broad range of investment solutions for your plan. We co-launched the original target date fund in the 1990s and we continue to evolve our investment strategies and retirement solutions. Our investment experts can analyze and refine your plan lineup with the goal of meeting your employees’ needs and fulfilling your responsibilities.

Target date funds

  • Deeply researched glide path construction
  • Factor-driven indices
  • Dynamic series with active risk management
  • Custom solutions for unique plan objectives

Multi-asset solutions

  • Custom solutions including absolute return, alternative risk premia, income, and asset allocation strategies

Core funds

  • Evaluation of your core fund needs
  • A range of strategies, including index, active, and quant across equity and fixed income, as well as money market and other specialty funds
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Your team of experts

Our retirement experts can explore solutions, plan designs, and employee engagement strategies with you.