BOSTON--(BUSINESS WIRE)--NEPC, LLC, one of the largest independent, research-driven investment consulting firms, today announced the results of its second Defined Contribution COVID Impact Poll, which covers the pandemic’s impact on plans and sponsors’ priorities for 2021. This is a follow-up to 2020’s Defined Contribution COVID Impact Poll.
“The pandemic and CARES Act changed the landscape and plan sponsors worked overtime for their participants last year,” said Ross Bremen, Partner at NEPC and member of the firm’s Defined Contribution Practice Group. “There’s a more optimistic view of 2021, with the majority of respondents planning to get back to ‘business as usual.’ Topics that were hot prior to COVID - financial wellness tools and lifetime income - are back on the docket.”
The respondents are largely from public (19%), healthcare (20%), and corporate (52%) organizations. Below are the key themes:
- Healthcare plans were heavily impacted: While 50% of all respondents experienced furloughs last year, 66% of healthcare respondents indicated the same. Of all respondents that suspended the match in 2020 because of COVID, 44% were healthcare plans. Healthcare organizations expect a relatively quick recovery, though. No healthcare respondents expect furloughs in 2021 and all respondents that suspended the match plan to reinstate it this year.
- Plan innovation returns to the spotlight: After prioritizing COVID-related initiatives in 2020, almost half of all respondents (40%) expect a return to “business as usual” this year. Discussions centered around plan innovation will likely play a central role, with 40% of respondents planning to review financial wellness tools and 33% considering retirement income solutions.
- Investment menus are working: Almost all respondents (96%) are satisfied with their investment menus. Target date funds (TDFs) in particular may help with this high satisfaction score - 32% of respondents rated their TDF performance as “terrific.” No respondents said they had “disappointing” TDF performance.
For the full 2021 results, click here. For the full results of 2020’s survey, click here.
ABOUT NEPC, LLC
NEPC is an independent investment consultant and private wealth advisor, serving 391 retainer clients and $1.1 trillion in total assets. Combining a proprietary research team dedicated to the long-term challenges facing investors with our unique client-centric model, NEPC builds forward-looking investment portfolios for defined contribution plans.
To learn more about NEPC, visit nepc.com.
