Happy Friday, readers! It’s a common saying in the retirement plan industry that the back-end of the savings effort (i.e., spending down accumulated assets in a sustainable and efficient way) is far more complicated than the accumulation effort. This is because plan participants all have different longevity expectations, different beliefs about how they would like to live in retirement, and different conclusions about how to weigh longevity risk versus the risk of under-consumption. Making matters even more difficult, survey data shows that plan sponsors are not necessarily thinking strictly about annuities when contemplating the addition of an in-plan retirement income option. Despite this, recordkeepers and asset managers most commonly point to an annuity-based product as being top-of-mind for plan sponsor clients. Will 2019 deliver greater clarity on this vexing topic?
According to Cerulli research, the various parties involved in the implementation of an in-plan retirement income solution are often not on the same page about basic terminology and definitions.
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The department believes an oversight bureau, created to assess the financial strength of annuity providers, would help employers and advisers become more comfortable including annuities in retirement plans.
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Nearly all of those who work with an adviser feel they have prepared themselves well for estimating their monthly income needs in retirement, Voya Financial learned in a survey.
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The proposal is intended to help investors better understand these contracts’ features, fees and risks, and to more easily find the information needed to make an informed investment decision.
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Variable annuities continue to face challenges in the wake of transaction processing disruptions caused by the now-vacated DOL fiduciary rule; however, experts anticipate sales to recover as business processes normalize and newer product types come to market.
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PLANADVISER has announced winners of the fifth annual Adviser Choice Awards, to be handed out at the PLANSPONSOR/PLANADVISER Excellence in Retirement Awards 2019 on March 28th.
The Standard Adds Retirement Plan Consultants to U.S. Regions; Regional Sales Director Joins OneAmerica’s Northern California Team; Two West Advisors Partners with TAG Resources; and more.
CFB Board sees decumulation as a likely driver of digital advice innovation, especially as an aging population creates a need for more efficient and effective services.
According to a study from the National Institute on Retirement Security, in 2016, each dollar paid out in pension benefits supported $2.13 in total economic output nationally.
