EBRI Calls New 401(k) Default Options 'Significant'

New default options that 401(k) providers can use when investors fail to select investments on their own will “significantly” improve investors’ returns, according to Dallas Salisbury, president and chief executive officer of the Employee Benefit Research Institute.

The Department of Labor is considering making balanced funds, target-date funds and managed accounts three default options, rather than stable value or money market funds, and is expected to reveal its decision within a month.

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