CMC Pension Professionals
Retirement Planners and Administrators (RPA)
HowardSimon, Strongpoint Partner
ERISA Services, Inc.
ERISA Services, Inc.
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Voya Launches Innovative New Target Date Solution for Retirement Plan Participants
Issued by Voya Financial
Sept. 4, 2019
MyCompass Index supports Department of Labor guidance on target date funds, shielding fiduciary responsibility for plan sponsors
New offering will complement Voya's existing target date fund solutions managed by Voya Investment Management
WINDSOR, Conn., September 04, 2019 -- Voya Financial, Inc. (NYSE: VOYA), announced today that its Retirement business has added a new target date fund solution. Designed by flexPATH Strategies Inc., MyCompass Index is now available to all of Voya's retirement plan customers. The innovative new solution is designed to address the unique retirement needs of all individual plan participants.
Target date funds (TDFs) are generally a crucial aspect of a retirement plan's investment lineup, reaching $2.1 trillion in assets under management in employer-sponsored defined contribution plan accounts at the end of 2017, which according to industry data is up from $1.3 trillion in 2015. /1/ Growing even more in popularity are custom TDFs, which represented an estimated $430 billion, or 20%. /2/
"As one of the most widely used investment options in defined contribution plans, target date funds provide a relatively simple way for Americans to save and invest for retirement," said Charlie Nelson, CEO of Retirement and Employee Benefits at Voya Financial. "However, we recognize that many individuals have diverse financial goals and risk tolerances, which may not be defined by a date alone. MyCompass Index combines the ease of target date fund selection with the unique needs of plan participants. This innovative new solution underscores Voya's commitment to providing meaningful, holistic financial wellness solutions that can help all Americans reach a secure financial future."
Voya's MyCompass Index leverages the expertise of flexPATH retirement planning capabilities along with fund management from well-known experts in the marketplace, including Voya's own industry leading stable-value capabilities. In addition to a competitive expense structure and integrated enrollment experience, the solution also offers participants added protection against market volatility and uncertainty.
MyCompass Index includes the following key features and benefits:
The new MyCompass Index solution further complements Voya's current TDF solutions offered through Voya's own asset manager, Voya Investment Management. Providing a unique approach that gives investors tremendous value by breaking free from the confines of traditional target date design, Voya's TDF offerings have experienced significant growth over the years, with assets increasing from $10.5 billion to $16.5 billion over the past five years (as of June 30, 2019). Recognizing their value and the benefits of collaborating with retirement plan customers, Voya's data shows approximately 80% of its new Small-Mid Corporate Market 401(k) plan participants select Voya TDFs. /3/
In addition to investment choices, Voya also believes it's important to drive changes in behavior and action through a multi-channeled approach to improve one's financial well-being -- with engaging experiences and solutions. As such, the company continues to invest in its suite of digital retirement planning services including a digital financial wellness experience, special needs planning tools and personalized account videos.
As an industry leader and advocate for greater retirement readiness, Voya Financial is committed to delivering on its vision to be America's Retirement Company® and its mission to make a secure financial future possible -- one person, one family, one institution at a time.
/1/ Research from the Defined Contribution Institutional Investment Association (P&I: Target-date fund strategies rise in popularity - DCIIA survey, March 20, 2019).
About Voya Financial®
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