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 >
Among other things, the RISE Act would encourage retirement savings by allowing plan sponsors to offer small financial incentives to motivate employee participation.
Eighty-one percent of respondents to a survey indicate they are at least somewhat likely to prefer a retirement plan that substitutes guaranteed income for safe investments such as bonds.
