For decades, the 4% rule served as a convenient shorthand for sustainable retirement spending—but the market environment it was built on no longer exists. With lower expected returns, elevated valuations, and rising longevity reshaping the retirement landscape, this piece makes the case for rethinking withdrawal strategies from the ground up.

Defined contribution (DC) plans play a central role in creating wealth, and there is increasing awareness of the need to better support all workers. While access is foundational, there is also a need to better understand how well the defined contribution system is working for all employees with access to a plan.

As alternatives gain traction within DC plans, traditional performance metrics fall short of capturing their true risk and return profiles. Addressing the methodological challenges of evaluating illiquid and non-traditional asset classes, this paper proposes frameworks that better reflect the distinctive characteristics of alternatives within a retirement portfolio context.

Sustainable investing discussions have been largely focused on environmental, social, and corporate governance (ESG) factors, fiduciary issues, etc. There is much less discussion and solid research on DC participants’ attitudes, awareness, and demand for sustainable investment options in their defined contribution (DC) plans.

The Collaborative for Equitable Retirement Savings (CFERS), a joint initiative of DCIIA, Morningstar Retirement, and the Aspen Institute Financial Security Program, published its first report examining racial and gender disparities in 401(k) account balances across approximately 180,000 participants. The findings show that significant gaps persist even after controlling for salary and tenure, with differences in contribution rates, loan behavior, and preretirement withdrawals identified as key drivers.

In this brief, DCIIA provides insight on three “hot topics” plan sponsors face in 2024 along with actionable steps for consideration, including: personalization, data privacy, and recordkeeper consolidation.