February 2, 2012 (PLANSPONSOR.com) – Fee disclosure regulations, in-plan guarantees, target-date
strategies and retirement planning optimism will significantly impact the
retirement plans industry in 2012, predicts Chuck Cornelio, president of Lincoln Financial's Retirement Plan Services.
we enter 2012, we see greater interest in employer-sponsored retirement plan
savings and investment options that offset volatility, include guarantees and
offer flexibility,” said Cornelio. “In this new era of fee disclosure, plan providers
are increasing their emphasis on demonstrating the value of their services. We
are also finding that our optimistic approach to motivating savers to take
actions that lead to better outcomes is appealing to plan sponsors and
participants alike. People are tired of being scared or berated into saving and
many are simply overwhelmed by the thought of even getting started.”
According to Cornelio, fee disclosure regulation
continues to be a topic at the forefront for the industry. Retirement plan
providers and advisers need to clearly articulate the value they bring to
participants and plan sponsors through proof points and quantitative measurements.
By increasing transparency, fee disclosure provides another way for providers
to help clients meet their fiduciary responsibilities.
believe that transparency is a good thing,” said Cornelio. “It’s one of the
best ways to demystify the real and perceived costs associated with your plan.
Education through disclosure can also help empower participants with additional
information to motivate them to make better investment and saving decisions
that will enhance retirement readiness.”
guarantees provide a compelling reason for consumers to consider options
available in their employer-sponsored plans that offer financial protection
coupled with growth potential. The combination of a prolonged economic crisis,
market volatility, lowinterest rate environment and
increased dependency on defined contribution plans to provide retirement
security has fostered an environment where guaranteed income, downside market
protection and enhanced retirement readiness tools are increasingly essential
offerings for retirement plan providers.
companies are uniquely proficient in managing risk,” said Cornelio, “and are
now leveraging their expertise with these types of guarantees and turning them
into viable and desirable solutions in the retirement plan landscape.”
withdrawal benefits, lifetime income options and principal protection
strategies will command more attention as sponsors and participants will look
to these solutions to meet retirement planning goals.