6 Suggested Asset Allocation By Age For Plan Sponsors

Every retirement plan sponsor faces the challenge of balancing regulatory requirements with the real-world needs of their participants. Offering a prudent, diversified investment lineup isn’t just best practice—it’s a fiduciary obligation under ERISA. Yet, with employees spanning multiple generations, a one-size-fits-all approach often falls short. That’s where age-based asset allocation comes into play: by aligning investment strategies with participants’ risk tolerance and time horizon, sponsors can help drive better outcomes and reduce both participant anxiety and plan-level liability.

This article presents six recommended allocation models, each tailored to a distinct age group and designed to meet the dual mandate of compliance and participant success. Along the way, you’ll find clear explanations of regulatory safe harbors like Qualified Default Investment Alternatives (QDIAs), insights from behavioral finance, and practical tools for implementation. Whether you’re benchmarking your plan menu or refining your fiduciary oversight process, these models will equip you with the knowledge to make informed, defensible decisions—backed by data, best practices, and real-world experience.

1. Why Age-Based Asset Allocation Matters for Plan Sponsors

Under ERISA, plan sponsors bear a fiduciary duty to act prudently, diversify investments, and always put participants’ best interests first. That means it’s not enough to simply offer a handful of funds—sponsors must design a lineup that adjusts to each employee’s risk profile and time horizon. Age-based asset allocation, often delivered through target-date or “glide path” strategies, provides a clear framework for meeting these obligations and helping participants stay on track for retirement.

Age-tiered models let you:

Align risk with time horizon
Enhance participant outcomes through tailored growth and preservation
Mitigate sponsor liability by documenting a reasoned, data-driven process

Consider two hypothetical defaults for a 45-year-old participant. A flat 60/40 equity-to-bond fund exposes them to more risk than necessary, given they have roughly 20 years until retirement. In contrast, an age-based glide path might start at 70% equities and gradually shift toward 50% over time—balancing growth potential today with capital preservation as retirement nears.

With these benefits in mind, the next sections walk through the regulatory safe harbors for default options and explain how behavioral finance research underscores the power of age-aligned defaults.

2. Core Asset Classes: Stocks, Bonds, and Cash Equivalents Defined

A well-constructed retirement menu rests on three fundamental building blocks: equities (stocks), fixed income (bonds), and cash equivalents. Each asset class serves a unique purpose in balancing growth, income, and preservation across a participant’s career.

Stocks
Represent ownership in a company. Over long horizons, equities tend to deliver the highest returns, helping participants build wealth. However, they come with higher volatility—price swings that can test investors’ nerves during market downturns.
Bonds
Debt instruments issued by governments or corporations. Bonds generally produce steady income through interest payments and exhibit lower volatility than stocks. They act as a cushion when equity markets falter, providing diversification and a predictable cash flow.
Cash Equivalents
Short-term instruments such as money market funds, Treasury bills, and certificates of deposit. These offer the greatest capital preservation and liquidity but deliver minimal returns. Cash equivalents are ideal for emergency reserves and short-term funding needs.

By blending these three classes, plan sponsors can construct glide paths that shift the balance from growth to income and preservation as participants age. The results below illustrate how each class has performed historically—and why diversification matters.

2.1 Historical Performance Overview

Over the past century, different asset classes have delivered distinct risk-return profiles. Data from Professor Damodaran’s historical returns (1928–2023) show:

Asset Class	Average Annual Return	Standard Deviation
Large-Cap Stocks	`9.64%`	`19.79%`
Long-Term Government Bonds	`5.07%`	`9.83%`
Equity Risk Premium (Stocks − Bonds)	`4.57%`	—

For a deeper dive into the raw data, see Damodaran’s full dataset:
https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histret.html

2.2 Correlation and Diversification Benefits

Stocks and bonds don’t move in lockstep. In many market cycles, their returns are negatively or minimally correlated—meaning when equities dip, bonds can help offset losses. Here’s why that matters:

Reduced Portfolio Volatility
Combining a 60/40 stock-bond mix historically lowers overall volatility compared to an all-equity portfolio, smoothing out returns over time.
Enhanced Risk-Adjusted Returns
By holding negatively correlated assets, the portfolio can capture growth from stocks while mitigating drawdowns via bonds.
Actionable Example
A simulated 20-year period shows a 60/40 portfolio experiences smaller peak-to-trough declines than an 80/20 mix, making it easier for participants to stay the course during downturns.

In practice, plan sponsors leverage these diversification benefits through target-date series or custom glide paths—adjusting the blend of stocks, bonds, and cash equivalents at each age bracket to match participant needs.

3. Methodology: How We Arrived at These Six Allocation Models

Designing a robust, age-based glide path demands more than intuition—it requires a disciplined blend of empirical data, industry standards, and fiduciary oversight. We began by aggregating long-term return series, consulting recognized “rule-of-thumb” approaches, and analyzing typical participant demographics from our own Admin316 plan sponsor engagements. From there, we tested each allocation against ERISA requirements and common risk profiles to ensure both compliance and participant alignment.

3.1 Age Range Selection and Rationale

Our six cohorts—20–34, 35–44, 45–54, 55–64, 65–74, and 75+—correspond with prevalent target-date fund vintages and key life stages. Each bracket reflects differing time horizons and financial priorities:

Ages 20–34: Wealth accumulation with decades to recover from market swings
Ages 35–44: Mid-career stress tempered by growing obligations (family, mortgage)
Ages 45–54: Peak earning years with an increased focus on preservation
Ages 55–64: Bridge to retirement where income planning takes center stage
Ages 65–74: Early retirement with sequence-of-returns risk and RMD considerations
Ages 75+: Late-stage retirement prioritizing liquidity for healthcare and living expenses

By aligning these age bands with typical participant journeys, sponsors can more precisely tailor risk exposure and communicate the rationale behind each default option.

3.2 Rule-of-Thumb Models and Industry Variations

To anchor our allocations in familiar frameworks, we reviewed classic guidelines:

The 100 - age and 110 - age formulas, which dial down equity exposure as participants grow older
The 10/5/3 rule, allocating 10% to equities, 5% to bonds, and 3% to cash—even though it’s a basic starting point (Tata Capital Moneyfy)
The 12/20/80 rule, which assigns 12% to low-risk, 20% to moderate-risk, and 80% to high-risk for more aggressive profiles (PPC Expo)

While those thumb rules simplify communication, they often lack the granularity required for ERISA-compliant QDIAs. We overlaid each approach with Professor Damodaran’s historical return data (link) and Admin316’s internal analysis of participant age distributions. The result is a six-model framework that marries simplicity for communication with the precision needed for fiduciary documentation and plan sponsor decision-making.

4. Ages 20–34: Aggressive Growth Model

Participants in their early careers have a long runway before retirement, making a high-growth allocation appropriate. For the 20–34 age bracket, we recommend an asset mix of roughly 95% equities and 5% bonds/cash. This aggressive growth model maximizes exposure to the higher expected returns of stocks while maintaining a small liquidity buffer.

Key benefits of this approach include:

High long-term return potential by leaning heavily into equities
Ample time horizon to recover from market downturns
Opportunity to benefit from compounding over multiple decades

That said, participants should understand the volatility trade-off. Sharp equity swings are inevitable, so clear education on market cycles and periodic performance reviews is essential to keep early-career employees engaged and on track.

4.1 Domestic vs. International Equity Breakdown

A diversified equity sleeve helps capture growth across different markets and sectors. Within the 95% allocation to stocks, a sample sub-allocation might look like this:

70% U.S. large-cap (e.g., S&P 500)
15% U.S. small-cap (e.g., Russell 2000)
10% Developed international (e.g., MSCI EAFE)
5% Emerging markets (e.g., MSCI Emerging Markets)

By blending large-cap stability with small-cap and international growth opportunities, participants can tap diverse return drivers and reduce reliance on any single market.

4.2 Implementation in Plan Menu

To deliver this model in your plan, consider including:

An “accelerated” target-date fund series or a custom aggressive growth fund
Clear naming conventions (e.g., “Retirement 2065 – Aggressive Growth”)
Educational materials that explain why younger participants can embrace higher equity exposure

For more on integrating an aggressive glide path early in the retirement journey, see Admin316’s early retirement investment strategy.

5. Ages 35–44: Growth with Stability Model

By the mid-career stage, many participants face mortgages, college tuition, and growing family responsibilities. They still have 20–30 years until retirement, but unexpected expenses or market shocks can derail long-term plans. For ages 35–44, we recommend an allocation of approximately 85% equities, 10% bonds, and 5% cash. This blend maintains strong growth potential while introducing a meaningful buffer against downturns.

Balancing growth and stability at this life stage helps participants stay invested through market volatility without exposing them to the full brunt of equity swings. A modest allocation to fixed income and cash provides liquidity for short-term needs—think home repairs, tuition payments, or an emergency fund—while equities continue driving portfolio appreciation.

5.1 Adding Fixed Income for Downside Protection

Bonds play a critical role in cushioning equity losses. For this cohort, consider:

Intermediate-term bond funds that offer higher yields than short-term instruments without taking on excessive duration risk.
Bond ladders built from individual securities, staggering maturities every 1–3 years to provide predictable cash flows.
Credit quality targeting investment-grade issues (BBB and above), which strike a balance between yield and default risk.

At current market rates, intermediate-term corporate or government bond funds may yield between 3% and 5%. This income can offset equity drawdowns and reduce sequence-of-returns risk.

5.2 Sample Glide Path for Mid-Career Participants

A gradual shift each year keeps allocations aligned with an evolving risk tolerance. The table below shows a simple 1% annual move from equities into bonds, with cash held constant at 5%:

Age	Equities	Bonds	Cash
35	85%	10%	5%
36	84%	11%	5%
37	83%	12%	5%
38	82%	13%	5%
39	81%	14%	5%
40	80%	15%	5%
41	79%	16%	5%
42	78%	17%	5%
43	77%	18%	5%
44	76%	19%	5%

Actionable tip: set up an auto-rebalance schedule—quarterly or semi-annual—to bring allocations back within tight drift bands, such as ±5% from target. That way, you capture gains and buy bonds at attractive prices when equities ebb, keeping participants on the intended glide path without manual intervention.

6. Ages 45–54: Balanced Focus Model

As participants enter their mid-career phase, priorities shift toward both growth and preservation. With peak earning potential and increasing focus on retirement goals, a balanced allocation model of 70% equities, 25% bonds, and 5% cash can help capture upside while dampening volatility. This mix still leans into stocks—fueling portfolio appreciation—yet adds a meaningful fixed-income cushion to protect against market swings. At this stage, participants often begin eyeing catch-up strategies and exploring outside savings vehicles, so clear communication around both allocation and contribution options is critical.

Key considerations for this age bracket include:

Maintaining enough equity exposure to outpace inflation
Adding bond duration for smoother returns as retirement nears
Holding a small cash reserve for short-term needs or unexpected expenses
Leveraging tax-advantaged accounts and catch-up provisions

6.1 Contribution Maximization and Catch-Up Options

Participants aged 50 and above can boost retirement savings through catch-up contributions. Employers should highlight how these higher limits work alongside standard deferral caps:

401(k) catch-up: After turning 50, participants can contribute an extra $7,500 in 2025, on top of the $23,500 limit.
IRA catch-up: Individuals 50+ may add an additional $1,000 to their annual IRA contribution.
Tax filing strategies: Weigh Traditional vs. Roth IRAs by considering current tax brackets and future income projections.

For more on selecting and combining IRA vehicles, see Admin316’s IRA investment options page. Emphasizing these opportunities can make a notable dent in retirement readiness during prime earning years.

6.2 Integrating Taxable Accounts for Flexibility

By mid-career, some participants have maxed out their employer-sponsored plans and IRAs. Introducing a taxable brokerage component offers additional advantages:

Liquidity: No withdrawal penalties or RMDs, making funds available for major life events.
Tax diversification: Blends tax-deferred, tax-free, and taxable buckets to smooth future tax obligations.
Tax-efficient strategies:
- Tax-loss harvesting to offset gains
- Investing in municipal bonds for federal (and sometimes state) tax-exempt income
- Holding low-turnover ETFs or index funds to minimize yearly distributions

When sponsors build education around a mixed account strategy, participants can customize their saving pace and tax profile without compromising their core glide path.

7. Ages 55–64: Preparing for Retirement Model

As participants enter their late career stage, the focus shifts from aggressive growth to capital preservation and income planning. With retirement on the near horizon, a balanced allocation that cushions against market swings becomes critical. For ages 55–64, we recommend a portfolio mix of roughly 50% equities, 40% bonds, and 10% cash. This blend allows participants to stay invested in growth assets while locking in gains and maintaining liquidity for short-term needs.

Capital preservation takes center stage in this bracket. A meaningful bond allocation dampens volatility and provides regular interest income, while a modest cash reserve covers emergencies or unplanned expenses without forcing a sale of longer-term holdings. At the same time, equity exposure—though reduced—still helps combat inflation and supports continued portfolio growth. Sponsors should also educate participants on the importance of reducing high-interest debt and solidifying an emergency fund before retirement.

Income planning begins now. Participants should run projections for Social Security, pensions, and other guaranteed sources, then align their portfolio strategy to fill any income gaps. Clear communication about how the 50/40/10 mix supports both growth and near-term cash flow can help participants feel confident as they approach the finish line.

7.1 Roth Conversions and Tax Planning

As tax rates fluctuate, ages 55–64 often bring years with lower taxable income—especially if participants have reduced work hours or phased into semi-retirement. It can be an opportune window to convert portions of Traditional 401(k) or IRA balances into a Roth account. Benefits include:

Locking in today’s tax rates on converted amounts
Tax-free growth and withdrawals in retirement, subject to holding requirements
Avoiding required minimum distributions (RMDs) on Roth IRAs after age 73

Participants considering Roth conversions should run scenarios for their current and projected tax brackets, balancing conversion amounts against potential bumps into higher brackets. Sponsors can offer generalized illustrations or point to tax-planning tools, helping participants decide if a partial or full conversion strategy makes sense.

7.2 Sequencing Withdrawals and Income Buckets

A clear withdrawal plan prevents running out of funds and smooths taxable income over retirement. One popular approach is the three-bucket strategy:

Short-Term Cash Bucket
1–2 years of living expenses in money market funds or CDs to cover unexpected costs without selling investments.
Medium-Term Bond Bucket
3–7 years of expenses in intermediate-term bonds or bond ladders, generating income and preserving capital.
Long-Term Equity Bucket
Remaining assets in stocks or balanced funds to support growth and outrun inflation over a multi-decade retirement.

Example Annual Withdrawal Plan:

Year 1: Draw from the cash bucket to cover 100% of expenses.
Years 2–5: Tap the bond bucket at a 4% withdrawal rate, replenishing cash as needed.
Year 6 onward: Shift to a sustainable 3.5% draw from the combined equity and bond portfolio, rebalancing buckets annually.

By sequencing withdrawals, participants reduce sequence-of-returns risk and maintain a buffer against steep market declines. Plan sponsors can support this approach with template worksheets or links to bucket-planning calculators, ensuring participants have a structured, tax-efficient framework as they transition into retirement.

8. Ages 65–74: Income Preservation Model

At ages 65 to 74, participants are often fully immersed in retirement, relying on investment income, Social Security, and other guaranteed sources to cover living costs. In this stage, the portfolio’s primary goal shifts from aggressive growth to reliable income and capital protection. We recommend a target allocation of roughly 40% equities, 50% bonds, and 10% cash equivalents. This mix helps generate steady income while preserving principal and buffering against market volatility.

Equities still play a role in maintaining purchasing power and combating inflation, but at a reduced weight. A 40% equity slice—tilted toward dividend-paying large caps and global developed markets—can deliver modest growth without exposing retirees to large drawdowns. A 50% bond allocation, split between intermediate-term government and high-quality corporate issues, provides consistent interest payments. Finally, a 10% cash reserve in money-market vehicles or short-term Treasuries ensures liquidity for unexpected expenses, reducing the need to sell longer-term holdings during down markets.

Integrating Social Security income alongside portfolio withdrawals is crucial. Sponsors can encourage participants to delay claiming benefits until full retirement age (or later) for higher monthly checks. When Social Security is factored in, the portfolio draw rate can often be reduced, further preserving assets over a multi-decade retirement horizon.

8.1 Required Minimum Distribution Strategies

Once participants reach age 73, the IRS mandates Required Minimum Distributions (RMDs) from tax-deferred accounts. Without careful planning, RMDs can push retirees into higher tax brackets. Sponsors should educate participants on tactics to smooth the impact:

Charitable RMDs (Qualified Charitable Distributions) allow up to $105,000 per year to be transferred tax-free from an IRA to a qualified charity, satisfying the RMD.
Partial Roth conversions in lower-income years can reduce future RMD obligations by shifting assets into tax-free buckets.
Scheduling distributions evenly throughout the year helps avoid large, single-year income spikes that trigger higher marginal rates.

Providing templates or calculators for estimating annual RMD amounts gives participants a clear picture of their taxable income needs and helps them plan ahead.

8.2 Annuities and Guaranteed Income Options

To further anchor the income portfolio, consider including annuity-based solutions as part of the QDIA lineup:

Deferred Income Annuities start payouts at a future date, making them ideal for bridging the gap between early retirement and guaranteed income onset.
Immediate Annuities begin payments within months of purchase, delivering predictable cash flow that can replace or supplement bond interest.

Pros of annuities include locked-in income streams and longevity protection, which guard against outliving assets. On the flip side, annuities may carry higher fees, surrender charges, and reduced liquidity. In a QDIA context, a modest allocation (for example, 10–15% of the bond sleeve) to a group annuity contract can provide an income floor while preserving the plan’s overall flexibility and compliance with ERISA diversification rules.

By blending RMD planning, Social Security timing, and annuity options, participants in their late 60s and early 70s can pursue a sustainable, low-volatility retirement income strategy—one that honors their need for stability and safeguards against sequence-of-returns risk.

9. Ages 75 and Older: Capital Protection Model

For participants aged 75 and above, preserving capital and ensuring liquidity become paramount. At this stage, retirees often face higher medical and living expenses, and they may rely heavily on portfolio withdrawals to cover these costs. A conservative mix of roughly 30% equities, 50% bonds, and 20% cash equivalents helps safeguard principal while maintaining enough growth to combat inflation over a potentially lengthy retirement.

This allocation emphasizes readily accessible funds without forcing sales of long‐term holdings during market downturns. The 20% cash sleeve can cover short‐term needs—such as out‐of‐pocket medical bills or home repairs—while the 50% bond allocation provides predictable interest income. A modest 30% equity component, tilted toward dividend‐paying large‐cap stocks and high‐quality international issues, helps the portfolio stay ahead of inflation without excessive volatility. Plan sponsors should ensure this tail‐end glide path is clearly documented and communicated as part of their fiduciary process.

9.1 Managing Longevity Risk

Longevity risk—the chance of outliving one’s assets—grows with advanced age. Sequence‐of‐returns risk also intensifies when large withdrawals coincide with market drops. To mitigate these risks:

Construct a laddered bond portfolio with staggered maturities in the 1–5 year range, providing predictable cash flows and reinvestment opportunities at prevailing rates.
Maintain a cash reserve equal to 12–24 months of typical expenses in money‐market funds or short‐term Treasuries.
Consider a small annuity allocation (for example, 5–10% of the bond sleeve) to introduce guaranteed lifetime income, easing pressure on the remaining portfolio during volatile markets.

These steps help participants avoid forced sales in down markets and ensure access to funds for essential expenses, reducing the risk that they’ll exhaust assets later in life.

9.2 Plan Sponsor Considerations for Late-Stage Participants

Plan sponsors have a duty to provide default options that suit the unique needs of older retirees. Key considerations include:

Tailored communications: Educational materials and statements should highlight income stability and strategies for covering healthcare costs.
Simplified fund menus: Offer a straightforward default that reflects the 30/50/20 split, avoiding overly complex choices that can overwhelm late‐stage participants.
Regular review: Conduct annual checks of the late‐stage glide path to confirm the allocation remains prudent and aligned with market conditions.

By focusing on liquidity, income consistency, and clear guidance, sponsors fulfill their fiduciary obligations and help participants navigate the final phase of retirement with confidence and peace of mind.

10. Monitoring, Rebalancing, and Risk Management Best Practices

Having a well-constructed glide path is only half the battle—ongoing oversight keeps those allocations working as intended. A written rebalancing policy formalizes your process, documents fiduciary prudence, and ensures consistent application across all participant cohorts. At its core, this policy should spell out how often you’ll review the lineup, what triggers a rebalance, and which metrics drive your decisions.

Most record-keepers offer monitoring tools that flag when a fund drifts beyond prescribed limits. Whether you choose quarterly or semi-annual reviews, consistency is key: regular check-ins help you catch unintended tilts—like an equity sleeve growing from 60% to 66% after a bull run—before they expose participants to unapproved risk. Beyond asset weights, keep an eye on participant engagement. If large segments of your population aren’t rebalancing or are consistently missing communications, it’s a red flag that your policy or educational outreach needs adjustment.

Key metrics to track:

Drift bands (e.g., ±5% from target) to trigger buy-sell decisions
Tracking error against your benchmark glide path
Participant view-through rates on education and fund change requests

10.1 Automated vs. Manual Rebalancing

Automated rebalancing features built into most record-keeping platforms can help enforce your policy without manual intervention. They’ll typically:

Scan account holdings daily or weekly for drift beyond set thresholds
Execute trades to bring allocations back to target
Generate audit trails for fiduciary documentation

On the flip side, manual rebalancing gives sponsors more control to review market conditions, fund changes, or plan design tweaks before adjustments occur. Manual processes often involve:

Periodic reports generation (quarterly or semi-annual)
Investment committee review of lineup and policy compliance
Trade execution via a defined workflow

Many sponsors adopt a hybrid approach: automated alerts highlight out-of-tolerance accounts, while an investment committee vets any large-scale shifts before finalizing trades. A common standard is a ±5% drift band on core slices—so a 60% equity target is rebalanced if it falls below 55% or rises above 65%.

10.2 Ongoing Fiduciary Oversight

Maintaining a robust oversight framework requires more than rebalancing. Consider a quarterly or annual checklist to document your fiduciary activities:

Fund lineup review: confirm each option still meets performance, fee, and manager-stability criteria
Fee benchmarking: compare your plan’s total expense ratios against industry averages
Participant communication audit: verify that educational materials and default-option disclosures have been delivered

For a deeper look at how to integrate contribution strategies with your rebalancing policy, explore Admin316’s 401(k) contribution and rebalancing strategies page. Regularly updating these materials and your policy not only fulfills ERISA requirements but also builds participant trust—demonstrating that you’re actively managing their path to retirement.

11. Common Questions from Plan Sponsors About Age-Based Allocation

Many plan sponsors turn to age-based strategies with questions about common rules of thumb and industry benchmarks. Below are concise answers to some of the top “People Also Ask” queries—let these FAQs help you validate your approach and keep your fiduciary process on solid ground.

What is a good asset allocation by age?

Industry data shows that equity exposure typically declines gradually over a career. For example, investors in their 20s through 40s often hold around 40%–43% in U.S. stocks and about 8% in international equities. By the 50s, that U.S./international split shifts slightly to roughly 39.5% and 8.1%, and by the 60s it settles near 36% and 8.2%, respectively. These averages offer a starting point—but remember to layer in fixed income and cash as time horizons shorten. For a deeper look at benchmark mixes, see the average portfolio mix by investor age.

What is the 10/5/3 rule of investment?

The 10/5/3 rule provides a simple growth assumption for building a balanced portfolio: expect about 10% average annual return from equities, 5% from bonds, and 3% from cash or fixed deposits. While not a substitute for a full glide path, it offers a quick sanity check—you’ll know whether your plan’s overall assumptions align with realistic return expectations.

What is the 12/20/80 asset allocation rule?

This rule of thumb splits assets into 12% low-risk, 20% moderate-risk, and 80% high-risk investments. It’s geared toward aggressive growth—ideal for younger participants or those with long horizons. Bear in mind, though, that an 80% equity allocation may not satisfy ERISA diversification requirements for certain age groups, so use this framework as an illustrative guide rather than a compliance solution.

What is Warren Buffett’s 90/10 rule?

Legendary investor Warren Buffett has suggested keeping about 90% of your portfolio in equities (often in a low-cost S&P 500 index) and the remaining 10% in short-term bonds or cash. This approach emphasizes maximum growth while retaining a small cash buffer to seize market opportunities during downturns. As with any rule of thumb, adjust for your participants’ age, risk tolerance, and time to retirement.

12. Key Takeaways and Next Steps

Tailored, age-based allocation models give plan sponsors a clear path to satisfy ERISA’s fiduciary requirements while addressing participants’ evolving needs. By matching risk exposure to time horizon—and gradually shifting from growth-oriented equities toward income-focused bonds and cash—sponsors align their default options with sound behavioral finance principles, improve participant outcomes, and reduce plan-level liability.

To put these models into action, plan sponsors should:

Review participant demographics and life-stage distributions to select the allocation series that best fits your population.
Document a comprehensive default-option policy that outlines your QDIA choices, glide-path methodology, and rebalancing rules.
Establish a regular monitoring cadence (quarterly or semi-annual) to track fund drift, participant engagement, and fee benchmarks.
Communicate clearly—using simple charts, sample withdrawal buckets, and targeted education—to keep participants informed and confident in their retirement strategy.

Ready to strengthen your plan menu, streamline fiduciary oversight, and deliver age-appropriate investment options? Explore how Admin316 can partner with you on plan design, compliance support, and day-to-day administration at Admin316.