4/5/2015 – Investigating alternative approaches to 401(k) plans (Pittsburgh Post-Gazette)
A number like $6.7 trillion is hard to ignore. That’s how much people have in retirement savings accounts and other defined contribution plans, according to the Investment Company Institute, an investment industry group.Hedge and private equity funds and other alternative investments have yet to claim much turf in the growing market, but that could change.
Shifting responsibility for retirement saving from employers to employees means fewer employers are offering pension plans. Some are getting out of the pension business by offering lump sum payments to workers and retirees or are purchasing annuities that turn their pension liabilities over to insurance companies. Other companies have frozen benefits and are offering 401(k) plans to employees.
With their biggest market in decline, purveyors of hedge funds and other alternative investments are venturing into the more promising side of retirement saving.
Read the full article at the Pittsburgh Post-Gazette.