Warren Cormier, executive director of DCIIA's Retirement Research Center, recently published a byline article in InvestmentNews -- "Investor confusion about target-date funds is alarming: Survey highlights the level of misunderstanding, which could lead to disappointed plan participants and suboptimal behavior."
This article shares some of the results of a study Warren conducted with AllianceBernstein. Read the full article to see some of the key data points and why Warren concludes:
"Participants with the wrong information are underestimating the risks involved with target-date funds. They may also be under the impression that all one has to do is adopt TDFs and one's successful journey toward retirement is guaranteed. It's arguable that the level of education surrounding these funds needs to be substantially improved."