FTFM The defined contribution pension market is coming of age and as DC assets rise, the fund industry is beginning to extend the innovations it has brought to the defined benefit pension market into DC as well.
The US 401k market has seen the growing popularity of target date retirement funds, which automatically change the risk profile of the investment portfolio, switching to less risky assets as the target date draws nearer. New rules introduced in 2006 allow plans to offer such funds as a default option where previously low-risk money market or stable value funds were the norm.
