Administrators of 401(k) plans need to look at the overall retirement readiness of their participants, the Defined Contribution Institutional Investment Association said in a white paper posted on its website Monday.

By looking at the entire scope of employees retirement income, including defined benefit and Social Security payments, defined contribution administrators can better assess whether workers are headed for a financially secure retirement, according to the report.

The study urged plans to eliminate or limit the amount of company stock in their offerings because, if workers invest too heavily in these stocks, it could weaken their portfolios through a lack of diversification.

The report also said 401(k) plans should mix offerings with both active and passive management.

“Actively managed funds in a single asset class may compliment passive peers,” said the report.

To ensure workers don’t harm their retirement through excessive 401(k) borrowing, the report said administrators should put into place at least one of the following loan limitations:

• Limit workers to one outstanding loan at a time.

• Require waiting periods between loans.

• Limit withdrawals to participant contributions only.

• Charge loan initiation fees.