Firms Partner to Provide Customized QDIA for DC Plan Participants

Alight Solutions has introduced WealthSpark, a new solution that combines highly customized investment portfolios designed by AllianceBernstein (AB) with Personal Capital’s digital wealth management tools that offer greater into people’s financial picture. WealthSpark’s initiatives are to create easier means for workers to plan, save and invest smarter.

“We believe WealthSpark will be a bridge to connect people’s financial realities with their financial goals to truly help them thrive,” explains Alison Borland, executive vice president of defined contribution [DC] solutions at Alight. “Most default investment options do not recognize and appreciate the complexities of people’s individual financial situations or the competing priorities they face through the course of their lifetimes.”

WealthSpark’s investment recommendations are based on up to 18 individualized data points cultivated through Personal Capital’s technology, including individual financial situations, investment accounts outside their retirement plan, their partner’s financial situation and obligations like paying for a child’s college or elder care. The platform also helps workers better understand and make decisions about their personal finances from everyday budgeting to managing life events like paying back student loans, saving to buy a home or planning for retirement. WealthSpark can serve as the qualified default investment alternative (QDIA) in the employer-provided savings plan.

“We have more than a decade of experience designing custom glide paths for many of the largest U.S. defined contribution plans, and are excited to partner with two leaders in their respective fields to deliver this innovative solution,” says Jennifer DeLong, head of defined contribution at AB. “The solution combines asset allocation with technology to deliver a more personal participant experience. By better understanding a participant’s individual circumstances, we can create a series of optimized glide paths to tailor outcomes to participants’ unique financial objectives.”

More information about WealthSpark can be found here.