Nevin's Data "Points"

  For years now, I’ve been saying that the only thing wrong with the 401(k) system is that there aren’t enough of them. And to be fair, the past several years have largely validated that view. Indeed, Vanguard’s latest How America Saves report paints what is, on the surface anyway, a remarkably encouraging picture. Participation rates among eligible workers are near record highs. Contribution rates rose — 45% of participants increased their savings rate in 2025, contributing to an average savings rate of 12.1%, an all-time high. Professionally managed investments dominate participant portfolios. Most investors ignored market volatility entirely — and, doubtless as a result of all that — account balances reached new highs. Yes, after decades spent worrying about employees failing to enroll, hunkering down in stable value funds, or panic-trading during downturns, the modern defined contribution system increasingly appears to be functioning as designed — or, as Vanguard labels it — a...

The retirement industry spends enormous time modeling outcomes, but most of what really prepares us for retirement isn’t found in a Monte Carlo simulation. It’s learned from watching people around us live their lives. Often our fathers. My parents led mostly through example — and powerful as that can be, as a kid those messages are often too subtle to be noticed, much less appreciated. At 6’ 5” he was an imposing figure, all the more from the pulpit from which he did speak. He was a good speaker, but not a natural one. As a minister, he worked hard at it, studied his subject matter, and practiced his presentation relentlessly, each and every week. I always thought it amazing that such a quiet, introverted man would choose that career — but, and though it can’t have been easy, it was something he felt called to do at an early age. ad space He had opinions, but didn’t impose them on others. It was difficult (and sometimes frustrating) to wrest opinions from him. Indeed, despite his minis...

  There are a handful of institutions in the benefits world that have become so woven into the daily rhythm of the industry that it’s hard to imagine the business without them. For many of us, BenefitsLink was one of those institutions. And now, after more than three decades, effective June 30 it’s coming to an end. [i] Back in 1995 — when most of us were still figuring out what the internet was, much less what it might become — Dave Baker and Lois Baker launched something that would fundamentally change how the retirement and benefits community shared information. It’s difficult to fully explain to those who came later just how revolutionary that was — and the inspiration it provided for a whole generation of benefit news sources, including my own “baby,” PLANSPONSOR’s NewsDash. [ii] Before BenefitsLink, finding timely information on retirement plans, executive compensation, health benefits, ERISA litigation, or regulatory guidance was often a scavenger hunt involving trade publi...

   I will confess that I am (still) of a mixed mind on imbedding retirement income solutions in 401(k) plans — and a new whitepaper on the implications of the new Investment Selection rule has done little to assuage those concerns. The Morningstar paper — aptly titled “ Guaranteed Income in DC Plans: Evaluating Target-Date Funds with Built-In Annuities ” — covers a lot of ground. That said, more than half the paper is background [i] — chronicling both the trend lines to date, as well as offering a readable description of the two primary types of retirement income options that have found their way into the target-date fund framework (and yes, they’re quite different!). Those trendlines have captured the attention (and doubtless recirculation) of the paper, particularly among proponents. But the “meat” of the paper considers the implications of applying the Labor Department’s “new” Investment Selection Rule (though its official label at present remains “ Fiduciary Duties in Sel...