Products February 18, 2016

Guardian Adds to Managed Account QDIA Capabilities

Guardian Insurance and Annuity Company is partnering with Brinker Capital Destinations to deliver a new CIT-based qualified default investment alternative to retirement plan clients.
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A new managed account qualified default investment alternative (QDIA) has been added to The Guardian Choice and The Guardian Advantage programs, built around collective investment trust (CIT) portfolios from independent investment advisory Brinker Capital Destinations.

According to the firms, the new CIT-based QDIA option is delivered via five professionally managed risk-based portfolios, offering investment strategies ranging from conservative to aggressive that feature a blend of mutual funds and exchange-traded funds. Each portfolio utilizes a multi-asset class approach and targets a specific investment objective, utilizing aspects of active management and core-satellite portfolio construction.

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Douglas Dubitsky, vice president at Guardian Retirement Solutions, says the new offering “represents each organization’s strong commitment to provide multiple managed account QDIA options to the small plan market space and help participants reach their long-term investment goals.”

Roddy Marino, executive vice president of national accounts and distribution at Brinker Capital, says the firm looks forward to the partnership with Guardian. “We are proud of Destinations’ long-standing track record as a disciplined investment solution, and our 10-year anniversary as a Retirement Plan Services provider,” Marino said. “Making our solution available through a large and prestigious partner such as Guardian significantly expands its availability to retirement plan investors.”

For more information visit www.GuardianLife.com. 

Data & Research February 18, 2016

Employer Retirement Plans Help Millennials with Savings Goals

A survey finds Millennials are committed to saving.
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More than three in four Millennial workers with access to an employer-sponsored retirement plan make consistent contributions from their paycheck to the retirement plan or to a savings account, compared with 43% of those without access to an employer-sponsored plan, according to a poll by Young Invincibles, a national advocacy group that aims to engage young adults on financial issues, higher education, health care and jobs.

Overall, two-thirds (67%) of full- and part-time working Millennials surveyed are saving consistently. Most Millennial workers who are saving save between 6% and 10% of their monthly income. Fifty-four percent of Millennial workers are saving between 0% and 10% of their income, while 13% save 11% or more.

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Eighty percent of survey respondents with access to an employer-sponsored retirement plan say their employer contributes to their retirement account, while 18% do not receive employer contributions.

The survey found that more than two-fifths (41%) of Millennials surveyed would put a 10% increase in annual income toward savings or investment. Twenty-four percent would put that money in an accessible savings account, 11% would put it toward long-term savings or retirement, and 6% would invest the money in higher-risk markets or stocks.

NEXT: Retirement plan access for Millennials

Just 23% said they would spend a 10% increase in annual income on a home or car purchase, a child’s education or care, consumer or luxury goods, or managing other financial obligations. Twenty-one percent would put this additional income toward paying down debt.

Seventy-four percent of Millennials surveyed who are working full- or part-time have access to an employer-sponsored retirement plan; however, access to these plans varies dramatically by income level. Fewer than half (48%) of workers earning less than $25,000 have access to an employer-sponsored plan, compared with 72% of workers earning $25,000 to $50,000, 77% of workers earning $50,000 to $75,000, and 84% earning $75,000 or more.

Millennial workers’ access to an employer-sponsored retirement plan also varies by education attainment: 64% of Millennial voters without a bachelor’s degree have access to an employer-sponsored plan, while 82% of those with a bachelor’s degree or higher have access.

Eighty-five percent of Millennials surveyed would support a state-facilitated retirement plan that “would provide a voluntary option for workers without a way to save for retirement at work.”

Findings of the Young Invincibles poll are here.

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