Compliance May 26, 2011

SPARK Seeking Comments on Lifetime Income Data Standards

The SPARK Institute is accepting requests from the retirement plan community for possible changes to its lifetime income solutions data standards.
Reported by

SPARK Institute members have identified and recommended several improvements to the original version of the Data Layouts for Retirement Income Solutions, which was released in September of 2010 (see “SPARK Releases Final Data Standards for Retirement Income Solutions“).  

“[W]e are asking everyone in the retirement plan community that is building to, or already using, the Data Layouts to submit additional requests for changes they feel are critically necessary,” said Larry Goldbrum, SPARK General Counsel.

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Issues will be handled according to the following hierarchy: 

  • Providing an explanation to accomplish a result or resolve an issue within the existing standards and file structure
  • Adding new codes
  • Modifying data field formats
  • Adding new fields at the end of an existing record

Suggested changes will be accepted through September 30, 2011, with the goal of finalizing and releasing a new version by the end of October 2011.  

The current version of the Data Layouts is posted on The SPARK Institute Web site at http://www.sparkinstitute.org/comments-and-materials.php.

Data & Research May 26, 2011

Pre-Retirees Open to Retirement Income Products

Fifty-five percent of Americans planning to retire in the next seven years are confident in their ability to generate a suitable retirement income, according to a recent Cogent Research report.
Reported by

As a result, these investors consisting mainly of First-Wave Boomers ages 55 to 64, are more open to retirement income products than older investors and current retirees.  

Cogent’s “In-Retirement Income” report reveals that only one in five (22%) Silent Generation investors are open to products specifically geared for producing retirement income. By contrast, 35% of First-Wave Boomers express interest in these same types of products.   

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A major contributing factor to this generational divide is the fact that Boomers are twice as likely as Silent Generation investors to be willing to “give up control of principal in exchange for guaranteed regular income payments” (31% First-Wave Boomers vs. 17% Silent Generation), the research found.   

Despite a general heightened acceptance of retirement income products among Boomers and pre-retirees, providers still face formidable challenges in their efforts to increase use. Topping the list is a perception among four in ten (42%) current and pre-retirees that they can effectively manage their retirement income on their own. Almost as many, 39%, cite a desire to maintain control and access to their principal. A third (34%) want unfettered access to funds at all times; and 27% say they simply lack trust in the idea of “guaranteed income.”   

The report is based on a nationally representative sample of 700 current and pre-retirees with at least $100,000 in investable assets.

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