Aon Hewitt Investment Consulting is a premier global investment consulting firm with best-in-class capabilities in every area of interest to institutional investors. We are unmatched in our ability to provide independent advice, tailored solutions regardless of size or market segment, and a full suite of complementary consulting services.
Most participants in defined contribution (DC) plans are not on track to achieve retirement income adequacy. A key reason is that the investment lineups in most DC plans are structured in a way that reduces participants’ likelihood of implementing well-diversified and age-appropriate investment strategies.
Plan sponsors’ level of sophistication and ability to manage complexity should influence which strategies are most appropriate, and we outline several possible strategies and the governance needed to implement them successfully.
Asset allocation is well known to be one of the most influential determinants of portfolio risk and return.