Wednesday, June 16th, 2021
A biweekly topical newsletter from PLANSPONSOR
Income in Retirement
A newsletter to inform defined contribution (DC) plan sponsors about strategies and tools to help participants create retirement income.
Retirement Tier Widely Recommended for DC Plans
A retirement tier is a range of products, solutions, tools and services to support participants who are near, entering or in retirement.
Helping Sponsors Speak in the New Retirement Income Tongue
DCIIA hopes its new retirement income glossary will help sponsors ask important questions, such as, “Do we want to keep retirees in the plan?”
Retirement can be a moving target.
81% of employers say their workers delay retirement for financial reasons.
88% of employers believe retirees need income they won’t outlive.
Help employees retire on time with lifetime income.
Source: MetLife ERMS 2020
Technology and Personalization Play a Part in Next Gen Retirement Income
Helping DC plan participants create retirement income starts with the savings experience and includes using technology to offer customization opportunities, as well as non-guaranteed and guaranteed investments.
As More Retirees Remain in Plans, Retirement Income Solutions Follow
Sponsors also say the fiduciary oversight and lower fees that come with staying in the plan help participants.
The Benefits of Stable Value Funds for Plan Participants
Stable value is touted as helping near-retirees manage sequence risk, should they have the misfortune of retiring into a downturn, but these investments offer advantages for participants of all ages.
In the Future, the Bias Will Likely Be for Annuities
For now, sources say there needs to be more education and a change of thought to help 401(k) plan sponsors and participants accept the income-generation value of annuities.
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