QOTW: Retirement Income Priorities

Retirement income is discussed, incessantly it seems, in the industry, though data continues to show little uptake of retirement income products by plan sponsors. This week we asked plan sponsors what they think their plan participants’ top priority is regarding retirement income. Nearly 60 percent indicated that employees worry most about ensuring they don’t run out of money in retirement, which as one respondent indicated, covers most of the other options as well.

We also asked plan sponsors if retirement income solutions have come up at retirement committee meeting. A third of respondents said not yet, while nearly 30 percent said they are looking to be educated on the topic, and 20 percent said it is becoming a more prominent topic at committee meetings.

Other comments on retirement income solutions include:

• Drawdown strategy education is provided and products are offered to assist with drawdown strategies and lifetime income for those who desire it.
• Initial and long-term selection, monitoring, liability and fiduciary concerns about Plan retirement income solutions.
• It's on our radar but we haven't seen a good solution in the marketplace.
• Not interested in current products. Hoping it evolves more.
• Other: We are in the midst of an RFP so not a priority at this time but will discuss
• Truly the TOP priority is an individual decision. One product or solution will not be appropriate - we need to have options AND education to help employees plan for their future financial lives.
• Typically we would not be a first adopter of something this new and wait until it is more mainstream.
• We are currently focused on improving the match, no current employee demand for income solution within the retirement plan as these are available outside the plan.
• We want to ensure our plan offers participants options with the potential for less volatility during such uncertain times.