Key findings:
Our analysis revealed that:
- An individual worker stuck in a low-performing, high-fee fund could retire with some $600,000 less in savings
- Collectively, workers could forgo $1.05 billion in retirement savings.
Evidence Base
Our research revealed that restricting pension fund options at onboarding would:
- Reinforce status quo bias and discourage active fund selection
- Increase retention rates in low-performing, high-fee funds
- Perpetuate outdated or mismatched insurance coverage, and
- Reduce competitive pressure and limit industry innovation
