If participants don’t want to take on additional risk, they might opt to put all their savings in a defined contribution plan into something more stable, such as a stable value or money market fund, rather than a target-date fund.
“They might think to themselves, ‘I don’t need to take on a volatile stock market. I can put everything in stable value, put everything in bonds, and that with my defined benefit plan will get me to a very adequate retirement,'” Austin said.
