Income+ is a feature of Financial Engines’ managed account program introduced in January 2011, designed to balance safety and growth in the years leading up to retirement. It provides steady monthly payouts from a 401(k) account, which can last for life with the optional purchase of an out-of-plan annuity. The Income+ feature is available to participants in Financial Engines’ managed accounts program at no additional cost.
The first three Mercer clients to go live with Income+ are Freeman, Kinder Morgan, and Milacron. Financial Engines has already received commitments from six Mercer plan sponsors to offer Income+ to their more than 50,000 401(k) participants.
According to the announcement, of the three companies to go live with Income+ this fall, Milacron will be automatically enrolling all 401(k) participants over age 60 into the service to help them protect their 401(k) assets leading up to retirement and to provide steady, reliable income in retirement. Participants can opt out of enrollment or cancel the service at any time without penalty.