Retirement Guardrails
Retirement Guardrails
Scores of lawsuits have pushed retirement plan sponsors to shorter, easier-to-navigate menus, but – as Ian Ayres and Quinn Curtis argue in this work – we've only scratched the surface of retirement plan design. Using participant-level plan data and straightforward tests, Ayres and Curtis show how plan sponsors can monitor plans for likely allocation mistakes and adapt menus to encourage success. Beginning with an overview of the problem of high costs and the first empirical evidence on retirement plan fee lawsuits, they offer an overview of the current plan landscape. They then show, based on reforms to a real plan, how streamlining menus, eliminating pitfalls, and adopting static and dynamic limits on participant allocations to certain risky assets or 'guardrails' can reduce mistakes and lead to better retirement outcomes. Focusing on plausible, easy-to-implement interventions, Retirement Guardrails shows that fiduciaries need not be limited to screening out funds but can design menus to actively promote good choices.
- Offers a new approach to retirement menu design
- Provides numerous straightforward and explicit ways to monitor participant choice
- Uses real participant level data to form an analysis of restricted retirement menu design
Reviews & endorsements
‘A masterpiece of meticulous and exhaustive research … an insightfully informative, thoughtful, thought-provoking, and highly recommended contribution to personal, professional, college, and university library Contemporary Economics and Money/Finance Studies collections and supplemental curriculum studies lists.’ James A. Cox, Midwest Book Review
Product details
June 2023Hardback
9781316518632
180 pages
235 × 158 × 18 mm
0.46kg
Available
Table of Contents
- Introduction
- 1. The case for proactive fiduciaries
- 2. Fees and dominated funds
- 3. Of lawsuits and letters
- 4. What more fiduciaries should learn: Assessing the prevalence of allocation errors
- 5. What more fiduciaries should learn: Assessing whether participants portfolios perform poorly
- 6. What fiduciaries can do to remedy menu misuse: Different ways to implement streamlining and guardrailing
- 7. How should fiduciaries trade-off divergent participant interests?
- 8. Can streamlining and guardrailing mitigate allocation error?
- 9. The growing misuse of brokerage windows
- Conclusion
- Index.
