DEFINED CONTRIBUTION

Find better results in DC plans

Investment selection might be the most important decision plan sponsors make. Even a slightly higher annual return can dramatically extend a participant’s retirement savings. 

Small increases, big outcomes

Even a hypothetical 0.5%-1% annual boost in returns can have a strong impact 

Impact of 50 bps and 100 bps increases in return in a hypothetical savings and withdrawal scenario

A graph shows that small increases in annual returns can dramatically increase retirement savings, resulting in several years additional retirement spending money.  Source: Capital Group. The demographic assumptions, returns and ending balances are hypothetical and provided for illustrative purposes only, and are not intended to provide assurance or promise of actual returns and outcomes. Returns will be affected by the management of the investments and any adjustments to the assumed contribution rates, salary or other participant demographic information. Actual results may be higher or lower than those shown. Past results are not predictive of results in future periods. Based on an exhibit from Russell investments. The additional years of retirement spending are intended to represent a conservative measure.

Source: Capital Group. The demographic assumptions, returns and ending balances are hypothetical and provided for illustrative purposes only, and are not intended to provide any assurance or promise of actual returns and outcomes. Returns will be affected by the management of the investments and any adjustments to the assumed contribution rates, salary or other participant demographic information. Actual results may be higher or lower than those shown. Past results are not predictive of results in future periods. Based on an exhibit from Russell Investments. The additional years of retirement spending are intended to represent a conservative measure.

That’s the true value of finding the right fund and the right manager. It can give participants the retirement lifestyle they deserve.

Why settle for the baseline when you can elevate a participant’s retirement? 

A 1% annual increase in returns could mean an additional 13 years of retirement spending for participants. That’s 156 months of retirement income participants may not have even anticipated. 

Resources

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. 

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses or the funds’ characteristics statement, which can be obtained from a financial professional or your relationship manager, and should be read carefully before investing. 

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely.

American Funds Distributors, Inc., member FINRA.