PLANADVISER Weekend Newsdash
Week ending August 31st, 2018

Happy Friday, readers! This weekend’s mailing focuses on the challenging and timely topics of Retirement Income and Rollovers. Advisers with a significant book of defined contribution plan business will already be familiar with the difficulty of helping clients transition a lump sum distribution into a lifelong paycheck. Participants want the safety of a guarantee, but they fear the lack of liquidity associated with annuitization. Fortunately, new products and strategies are emerging that may help participants access the income protection they want while also providing a greater degree of flexibility.

Editor's choice
DC Plan Industry Still Falls Short on Distribution Options
Looking across today’s DC plan marketplace, researchers suggest it is still much more common to see plan designs that are tailored to drive retired or terminated participants out of the plan. Read more >
Considerations for Helping Terminating and Retiring Participants
“If a plan sponsor can invest in an adviser or other person to provide direction for terminating or retiring employees, that would be extremely helpful,” Terry Dunne, from Millennium Trust Company, told 2018 PLANSPONSOR National Conference attendees. Read more >
Participants Speak Clearly About Need for DC Account Income Planning
A new report published by Cerulli Associates draws out participant perspectives on the topic of DC plan decumulation, revealing that many of those leaving the work force feel “generally clueless” about how to manage their nest egg. Read more >
Retirees Cite Decline in Income as Reason for Bankruptcies
The risks associated with aging, reduced income, and increased health care costs have been offloaded onto older individuals, while at the same time, older Americans are increasingly likely to file for bankruptcy, according to a paper by researchers from different universities. Read more >
Health Care Costs Remain Retirement Planning Blind Spot
According to a new survey, 76% of employees say they understand the salient features of health savings accounts, or “HSAs,” yet only 12% could correctly identify the common attributes of an HSA in a simple quiz. Read more >
MOST POPULAR STORIES
Half of Households Likely to Face a Retirement Shortfall

Looking at whether retirees will be able to replace 75% of their final-year earnings, the Center for Retirement Research at Boston College found the number of households at risk of facing a shortfall range from 42% to 60%.

Average Age Americans Plan to Retire Is 62

However, only 56% of people have calculated how much income they need to retire, MassMutual learned in a survey.

High-Net-Worth Individuals Would Like to Use RMDs to Offset Taxes

They also say they will not need the money for day-to-day living expenses, Allianz Life found in a survey.

Wells Fargo’s Annual Retirement Study Portrays an Industry in Transition

Executives overseeing the survey report agreed that the U.S. is just beginning to see the real impact of decades of public policy decisions and private employer efforts to fundamentally reshape the retirement landscape.  

Lack of Emergency Savings Intersects Retirement Concerns

The majority of respondents to a Cuna Mutual Group survey feel positive about their prospects for upward wealth mobility; on the other hand, a quarter say they have no emergency savings.

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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