Plan Participant Allocation Analysis

A picture is worth a thousand words. As more plans adopt automatic enrollment and automatic escalation to improve savings rates, attention is now turning to asset allocation.

Three Ways to Share Plan Allocation Insights With Your Clients

1. Show The Plan Overall

Use American Century Investments' online tool to generate an asset allocation scatter graph. Share the results to demonstrate how plan participants are currently invested, and help determine if a plan investment re-enrollment may be appropriate.

2. Identify Potential Issues

Using data from the record keeper, engage your client in a thoughtful dialogue about how the plan is helping participants invest for the future. After uploading an Excel file that includes participant's ages and equity allocation percentages, access a client-ready PDF that you can share.

3. Evaluate a Re-Enrollment

The scatter graph gives you a simple and straightforward way to evaluate the possibility of a plan investment re-enrollment. It will illustrate if participants are suitably allocated based on their time horizon, and visualize possible extreme allocations among participants. What to look for:

• Early-career participants who may be missing out on potential gains by being invested in stable value, money market or other non-diversified options.
• Pre-retirees may be taking on too much risk by being over-exposed to equities.

A Success Story

A Midwest manufacturer of home and lifestyle products had 443 participants with plan assets of $21 million.