?? Guaranteed #RetirementIncome Options in TDFs Are Gaining Momentum ??

Target-date funds (TDFs) with guaranteed retirement income options are reshaping the retirement planning landscape by providing participants with greater confidence in their financial future. This recent?PLANADVISER?article?by?Alex Ortolani?highlights how these innovative solutions are set to proliferate, bringing guaranteed income solutions to the forefront.

TDFs remain the most dominant default option in DC plans. However, as?Joshua Anderson, CFA, RI(k), CIMA?Nestimate,?pointed out in the article, retirement income can require more customization, making managed accounts an attractive complement to TDFs.

At Income America, LLC, we’ve seen the conversation evolve. Plan sponsors and advisers no longer ask, “Why should I consider this?” Instead, they ask, “How do I implement?” and “Where are you available?” This shift reflects the growing recognition that guaranteed income is essential for delivering secure retirement outcomes.

As Brendan Curran State Street Global Advisors shared, “Now people are doing their due diligence, they’re putting out RFPs: There is demand from the plan sponsors, and that demand is being backed up from the participants, given the decline in defined benefit plans.”

Helping people succeed in retirement is personal for me. My dad retired in Q1 of 2008. By March 2009, with the market down over 50%, he was ready to liquidate his investments and move to cash. The stress of uncertainty was overwhelming. Solutions that provide guaranteed income can remove that fear and allow hard-working participants to enjoy the retirement they’ve always dreamed of—secure and free from uncertainty.

This isn’t just my perspective—it’s shared across the industry. Kelby Meyers, CPFA?, AIF and Brendan McCarthy Nuveen, a TIAA company —we’re all aligned on one truth: the need to help people achieve a secure retirement has never been more urgent.

I encourage you to read the article and reflect on how we can keep the momentum going:

• How are you addressing the implementation of guaranteed income solutions in your plans?
• What steps can we take together to ensure no one retires with fear or uncertainty?
• Which record keepers need to adopt these solutions?