There was a major development in 2006 that transformed how Americans invest for retirement. It solved one problem, but created another that will be causing extra pain for people who retire in this economy. The mid-2000s was the start of the nudge revolution, where policy makers thought they could coax people into more desirable behavior. The idea seemed especially promising when it came to saving for retirement, where research showed that automatically enrolling people in retirement accounts would increase saving and lead to better investment decisions.
The problem with your retirement plan’s target date funds
