The Limits of 401(k) Predictive Tools: Where Tech Meets Human Fallibility A recent survey by J. D. Power reveals a disconnect between the promise of predictive tools in 401(k) plans and their actual performance.
Despite their potential, these tools are underperforming, leaving savers dissatisfied.
The primary issue lies in the design of these tools, which focus primarily on accumulation – forecasting future balances and income replacement rates – without adequately addressing decumulation.