Mike Sasso, with Portfolio Evaluations, and a professor at Boston University, explained a new way of thinking to get plan sponsors to focus on retirement income for participants.
More than 60% of employers want to keep retirees in their plan, and 33% prefer that terminated employees keep their balances in the plan, Alight Solutions found.
However, a survey finds retirees with a guaranteed income stream from a pension or annuity are able to spend more.
Scripps Chief Financial Officer Lisa Knutson says the pension risk transfer agreement is “another move in the company’s effort to de-risk its pension plan.”
Ninety-eight percent wish there was a way to make up for lost time, but 63% say they cannot take the chance of investing in higher risk financial products.
The company is facing lawsuits by a retirement plan participant whose assets were transferred to MetLife as well as by Massachusetts Secretary of the Commonwealth William Galvin.
Bing Waldert, a managing director with Cerulli Associates, says, "converting the 401(k) plan to an income platform is a step in taking DB [defined benefit] market experience and applying it to the 401(k) market.”
While 80% of investors say their adviser discusses risk tolerance, only 50% say they bring up the subject of guaranteed lifetime income.
They view it as a hedge against rising health care costs, longevity risk and market downturns.
A blueprint from the Insured Retirement Institute offers a guide for its dialogue with Congress and the Administration about improving Americans’ retirement outlook.
The research also found that retirees and pre-retirees who have a formal retirement plan are three times as likely to feel they are very prepared for retirement.