For U.S. retirees and older workers on the cusp of retirement, stabilizing their investment portfolios in their 60s, 70s, and beyond is no luxury – it’s a necessity.
That’s where stable value funds can help, mainly by adding an insurance element to guarantee portfolio returns.
Over 80% of U.S.-defined contribution plan sponsors offer stable value funds in their retirement fund lineup, according to 2022 data from MetLife. The same study also reports that stable funds outperform traditional “defensive-minded” funds in retirement portfolios such as money market funds.
What are stable value funds and what do they offer retirement savers? Here’s an inside look.