Mercer maintains its investment 401(k) by managing defined benefit plan risks, generating high-performance defined contribution plans and preparing clients for retirement. It has developed complex systems to counteract common challenges in its investment 401(k) plan, as Mercer reports.
Investment 401(k) plans require proper management to avoid market volatility, inflation and unstable interest rates. To reduce these financial risks, Mercer develops a pension risk strategy specifically for each client. This includes setting up an automated and dynamic de-risking solution, applying liability management techniques such as pension risk transfers and lump sum cash-outs, and consulting actuaries on the flow of defined benefit plan markets, according to Mercer.
Additionally, Mercer performs pension risk surveys that serve as raw data for the pension mortality study. The study also helps Mercer’s experts to address the mentioned common challenges, according to Mercer.
The responsibility of preparing the workforce for retirement has shifted from employers to employees. As such, employees need to minimize fiduciary exposure as well as administrative complexities when coming up with ways of managing their wealth, claims Mercer.
Mercer advises that employees come up with specific target income levels to assist in building their retirement plans. It facilitates this process by providing corporate knowledge and buying power to assist its clients in making spend-down decisions and ultimately achieve better results, as Mercer explains.