Is your defined contribution plan successful?

Plan sponsors should focus on three core metrics to gauge defined contribution plan success: participation rate, savings rate, and investment results. Automating enrollment and increasing contribution rates are key levers for improvement.

The article also emphasizes keeping retirees in the plan to benefit both participants and sponsors through continued access to low-cost options and increased plan assets. Sponsors should regularly measure these metrics, make adjustments, and repeat the process to ensure ongoing plan health. This proactive approach allows sponsors to control outcomes rather than relying solely on participant behavior.