Helping participants have a reliable stream of income in retirement is an increasing concern of retirement plan sponsors. In this week’s news, we see that providers encourage plan sponsors to embrace lifetime income solutions, but many plan sponsors are still leary. In addition, research finds that current retirees are not spending what they are drawing down from financial accounts, suggesting a new focus for the sustainability of retirement savings. A new bill that would shore up Social Security for the future would also help with the retirement savings draw down question. Retirement plan participants say knowing how much they should have in their retirement plan today to ensure a financially secure retirement would motivate them to save more. All this and more in this edition of PLANSPONSOR Weekend.
The majority of defined contribution (DC) plan sponsors offering lifetime income solutions to participants prefer offering systematic withdrawals and education rather than guaranteed insurance-backed products.Read more >