Why Investment Re-enrollment Matters | Capital Group

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Defined Contribution Insights

June 2015

Why Investment Re-enrollment Matters

Plan fiduciaries devote significant time and resources to educating participants about the importance of saving for retirement.

Despite this effort and the care that goes into making a well-balanced menu of investment options available to all participants, many participant allocations are at odds with their retirement needs.

In this article, we look at what fiduciaries can do to help participants allocate their investments to achieve better retirement outcomes.

Specifically, we believe plan sponsors should consider an investment re-enrollment, an action that requires little effort from participants and can improve their long-term prospects.

To support our view, we provide four case studies that demonstrate how plan sponsors have successfully re-enrolled participants to help improve their investment allocations.


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses or the collective investment trust's Characteristics statement, which can be obtained from a financial professional, Capital or your relationship manager, and should be read carefully before investing. 

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and not to be comprehensive or to provide advice.