As we’ve entered the era of Baby Boomers retiring, the retirement plan industry is focused more now on decumulating assets. Plan sponsors need to understand their options for offering the right plan design and tools to help participants draw down their assets in retirement, and plan participants need education about how to use the tools to establish an income stream. This edition of PLANSPONSOR Weekend is focused on decumulation strategies.
New DCIIA research put together in concert with a large group of retirement industry service providers highlights the crucial role plan design plays in terms of participants’ decumulation decisions.Read more >
Defined contribution plan participants are unlikely to feel confidence about retiring when they receive no retirement income projections and no help defining discretionary versus required expenses.Read more >
A new Cerulli Associates survey suggests that at least half of 401(k) plan participants have no idea what to do with the savings they have diligently set aside for retirement.Read more >
The ERISA Advisory Council’s recommendations to the Department of Labor (DOL) include publishing guidance confirming that a named plan fiduciary may appoint a 3(38) investment manager to select and monitor annuity and other lifetime income providers, as well as modifying qualified default investment alternative (QDIA) regulations.Read more >
According to Lori Dickerson Fouché, with TIAA, “The enhanced Retirement Profile tool shows TIAA annuity customers how the combination of lifetime income—such as fixed and variable annuities, Social Security or pensions—and systematic withdrawals have the potential to yield a steady and guaranteed retirement paycheck.”Read more >
Syed Nishat, with Wall Street Alliance Group, discusses potential effects on retirement plans if President Joe Biden is able to move forward his legislative agenda.
The lawsuit says the target-date funds were selected for the plan despite having no performance history and, when they continued to underperform, they were not replaced with better options.
While not required by ERISA, attorneys say a committee charter is a best practice that can help a plan run more smoothly—and help fiduciaries avoid litigation and penalties.
The Center for Retirement Research says half of American households are at risk of not being able to live at pre-retirement standards of living in retirement.
