For the past 40 years, plan sponsors have focused on making defined contribution plans reliable vehicles for their employees to build a nest egg.
As defined contribution plans have replaced defined benefit plans for many employers, defined contribution plans have evolved from being an option to help employees make it to retirement to one that will take them through retirement. This change in philosophy means that plan sponsors will have to rethink their approach to employee needs, retirement income, and plan design.
This paper highlights how Aon believes the defined contribution plan will transform over the next decade. How can plan sponsors best embrace change in a financially efficient way that improves the retirement futures of their employees?