Mike Swann | Source | Client Portfolio Manager, Defined Contribution Team, Institutional Group at SEI

Mike Swann, client portfolio manager at SEI in Oaks, Pennsylvania, says the fact that each participant is responsible for his own outcome is one of the things that is not working in the DC retirement plan system. Participants are not familiar with how to set up portfolios to withstand market losses or how to react to market losses, and they are subject to their own whims—taking hardship withdrawals or loans and reducing or stopping contributions when they need cash.

People are not confident they have the prowess to make investment decisions.