Default pathways in decumulation are emerging, led by larger funds Soft default dominates, but member choice still play a key role
AUM
Default pathway for the post-retirement phase
Half of the funds in the peer group offer a soft default into a retirement income pathway, with larger funds leading this trend, possibly due to greater capacity to design and implement post- retirement pathways. Meanwhile, seven funds continue to rely on members making an active choice, reflecting different levels of default pathway adoption across the DC markets.
Yes, a soft default (Member can opt out)
6
9
3
6
7
No, active choice required
1
Equal or less than$100bn (n = 13)
0
0
Yes, a hard default (No opt out)
More than $100bn (n = 5)
1
2
None of the above
1
n=18
22
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