Continued net flows out of the DC system, driven by Baby Boomer retirements, could cause more provider consolidation and redoubling of efforts by recordkeepers to keep assets in DC plans.
Willis Towers Watson offers nine actions for DC plan sponsors to mitigate risks in 2019.
Forty-two percent of consumers in a LIMRA SRI study said they were open to the idea of annuities, and 61% say having enough money to last through retirement years is their single most important objective for their assets in retirement.
More than half of Americans say they would prefer guaranteed income of $660 a month over a $120,000 lump sum, LIMRA SRI found in a survey.
They are worried about longevity risk, the Plan Sponsor Council of America says.
A report details how utilizing the savings through health management can fund staggered annuities to help pay for health care expenses in retirement.
One option is through a profit sharing plan that invests the money in an annuity once a participant retires.
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.
DB plan sponsors want to keep control of their plans as they de-risk.
Data from Morningstar demonstrates variable annuity net assets fell 1.6% to $1.95 trillion during the first quarter of 2018, versus fourth quarter 2017 net assets of $1.99 trillion; still, experts anticipate sales to recover as regulatory pressure and uncertainty ease.
This is especially true for single women retirees, but a survey finds owning an annuity and working with a financial adviser helps.
Prudential has introduced Guaranteed Income for Tomorrow (GIFT).
A blueprint from the Insured Retirement Institute offers a guide for its dialogue with Congress and the Administration about improving Americans’ retirement outlook.
However, 45% said they do not know how to select a retirement income product, according to a survey by fixed income annuity provider Annexus.
It intends to amend the Employee Retirement Income Security Act (ERISA) and lays out specific criteria for selecting an annuity benefit provider.
Robert C. Merton, Ph.D., and Arun S. Muralidhar, Ph.D., discuss how Standard of Living indexed, Forward-starting, Income-only Securities can address the call for in-plan retirement income solutions.
The Treasury Department believes that if an expert was certified to assess the viability of annuity providers, retirement plan sponsors would be more inclined to offer in-plan guaranteed lifetime income options.
Specific policy changes and plan sponsor initiatives can make guaranteed lifetime income a norm in the DC plan space, TIAA suggests.