Impact of Managed Accounts on Retirement Outcomes

This technical report presents findings from a comprehensive research study conducted by Empower, which analyzed the value of managed accounts in retirement planning over a five-year period. The study involved 387,000 active participants across various retirement plans and highlighted that managed accounts offer personalized investment strategies based on individual factors such as salary and retirement goals. The report details that participants using managed accounts had median balances 25% higher than those using target date funds or other investment models, with even greater differences observed among older participants. It also notes that plans offering managed accounts showed a 15% increase in participant balances compared to those without them, suggesting that access to personalized advice can significantly enhance retirement outcomes. The report emphasizes the importance of managed accounts in fostering participant engagement and improving overall financial health, making them a valuable tool for retirement planning.