Millennials Making Early Turn to Target Date Funds Says MassMutual

The younger the saver the more likely they are to embrace a target date fund, said Elaine Sarsynski, Executive Vice President and Head of Retirement Services at MassMutual.
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The younger the saver the more likely they are to embrace a target date fund, said Elaine Sarsynski, Executive Vice President and Head of Retirement Services at MassMutual. Sarsynski said asset allocation strategies like target date funds are becoming an increasingly popular option with busy employees who would prefer to turn management of their retirement investments over to a professional. 'We have over 3 million Americans that we are responsible for in our plans and in our millennial population about 51% of them invest in target date funds,' said Sarsynski. 'This allows them to have a portfolio manager that is focused on their age of retirement and then managing that glidepath over time.' Furthermore, Sarsynski said employers are doing more to get older employees to prepare for retirement because they realize that older employees are typically more expensive as they tend to be heavier users of medical benefits and are more likely to become disabled. Employers are also realizing that their employees’ personal financial issues are spilling over into the workplace and are taking proactive steps to promote financial wellness.