It’s Time to Get Serious About Retirement Income Solutions
Thoughtful consideration of a participant’s journey, both up to and through retirement, can help participants meet their retirement goals—and better position plans to retain assets.
More defined contribution (DC) plan participants are keeping their savings in plan after they retire, and future retirees expect to derive a greater share of retirement income from their DC plan balances.
Despite more assets remaining in plans, money is being distributed at lower levels. This suggests that participants may need help converting DC plan assets into an income stream once they reach retirement.
Every participant has their own unique circumstances that will impact their preferences for certain product features, such as income yield, income duration, income volatility, asset liquidity, and asset preservation.
There is no one-size-fits-all solution for retirement income. Participants’ unique and changing needs require various solutions to help them achieve their goals.