Voya Financial Adds Lifetime Income Product

Voya Financial has added BlackRock’s LifePath Paycheck target-date fund to its recordkeeping platform, making it available for qualifying plans, the company announced Tuesday.

The product allows plan participants to convert a portion of their retirement balance into guaranteed income through annuities, delivered by insurers chosen by BlackRock.

The LifePath Paycheck fund is invested like a TDF until participants reach the age of 55, when about 10% of the balance is allocated to lifetime income investment “units” that will reach about 30% of the portfolio by age 65 if not annuitized. Starting at age 59.5, a participant will have an “annuity purchase option” window that lasts until they turn 71, during which they can purchase an annuity that creates a guaranteed paycheck in retirement.

Voya said that the product meets the “evolving needs of plan sponsors and their participants.”

“One of the top concerns we hear from clients is the fear that participants will outlive their retirement savings,” said Amy Vaillancourt, Voya’s president of retirement, in a statement. “Our research has found 75% of working Americans strongly agree or agree that they worry about outliving their savings. We’re helping address this concern and advance our strategy to provide access to innovative solutions that support successful retirements.”

Plan sponsors that add LifePath Paycheck to their plan’s investment menu will also have access to BlackRock’s MyLifePath digital experience for their plan participants through Voya’s platform, according to the release.

MyLifePath offers participants educational tools to help them reach their retirement goals. The product’s main function is to educate participants about the LifePath Paycheck by helping people estimate the retirement income they may receive from their investment and by supporting the purchase of the lifetime income stream from the selected insurers.

A recent Nuveen and TIAA Institute survey of 2,153 401(k) participants found 93% of those responding said it was important for their plans to offer lifetime income options. Nuveen and TIAA offer annuity products.

LifePath Paycheck is available to 350,000 U.S. workers in employer-sponsored plans, with more than $22 billion in assets under management. The product launched in April 2024, according to the release.