Morningstar Launches New Managed Accounts Research Series and Defined Contribution Outcomes Model

Using the new model, Morningstar’s Center for Retirement & Policy Studies found that managed accounts can boost median projected retirement outcomes across all participant groupings studied

CHICAGO--(BUSINESS WIRE)--The Morningstar Center for Retirement & Policy Studies, part of Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment insights, today announced the launch of the 2026 Managed Accounts Research Series and the Defined Contribution Outcomes Model (DCOM)—a new simulation framework designed to evaluate the effectiveness of plan design interventions (including managed accounts) in workplace retirement plans.

The research leverages millions of participant records across thousands of plans to evaluate the impact of managed accounts after controlling for plan design and participant behavior. Using DCOM, which integrates predictive equations for savings rates and asset allocations based on real investor behavioral data, the study provides an objective evaluation of managed accounts across the industry.

Key findings include:

• Adopting a managed account could increase the median wealth-to-salary ratio at age 65: +5.9% for target-date fund (TDF) investors, +11.4% for self-directed (DIY) investors, and +7.7% across all participants.
• Younger workers and newer plan participants may see the largest relative improvements, with the youngest cohort (ages 20–24) experiencing up to a 22% increase for DIY investors.
• Managed accounts can generate the largest relative improvements for those earning less than $100,000 per year.
• The model finds managed accounts may provide value even in plans with auto-enrollment and auto-escalation features, with 92% of such plans in this study showing improved projected median retirement wealth for TDF investors.

“Our new research series and simulation model set a new standard for evaluating retirement outcomes,” said Spencer Look, associate director of retirement studies at the Morningstar Center for Retirement & Policy Studies. “By grounding our analysis in real participant behavior and plan design, we’re able to deliver actionable insights for plan sponsors, advisors, and policymakers—all with the aim of helping more Americans achieve their retirement goals.”

This study is the first in a series of quarterly releases examining the effectiveness of managed accounts in defined contribution plans. Future research will explore which plan features best predict the value of managed accounts, evaluate alternative default architectures, and extend modeling into the retirement phase.

About the Morningstar Center for Retirement & Policy Studies

The Morningstar Center for Retirement & Policy Studies has the mission to help improve the U.S. retirement system by arming decision- and policy-makers with unbiased and actionable data and analysis. The Center draws on the capabilities of Morningstar Retirement to fuel its commitment to helping people achieve better retirement outcomes.

About Morningstar

Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers and owners, retirement plan providers and sponsors, institutional investors in the debt and private capital markets, and alliances and redistributors. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $369 billion in AUMA as of Sept. 30, 2025. The Company operates through wholly-owned subsidiaries in 32 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on X @MorningstarInc.

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