In-Plan Guarantees, Fact or Fad?!
Chuck Hammond, CPFA?, AIF?, PPC?, CMFC?
Helping Advisors Start, Build and Grow Their Retirement Plan Practices
In-Plan Guarantees, Fact or Fad?!?
The retirement plan industry as well as the financial media have done a good job speaking to the accumulation phase of retirement planning.?I would be surprised if you could go an hour watching any tv network without seeing an ad for the importance of “saving for retirement”.?
Saving for retirement is certainly important, and at times can be confusing for employees. However, my concern is for the “bridge”.?How does an employee that has saved “bridge” the gap from saving to spending??The sources they chose to accumulate may not be the same as when they decumulate.?
?What are the alternatives to?traditional?target-date funds, or equity,?funds or even bond funds??Are employers and employees really looking for?investment options or funds with?a guaranteed income?
?First,?what are they? Guaranteed lifetime income?investment options?are suited to address the concerns of retirees.?They address the “bridge”.?They are?investment?options that offer the ability for a participant to create a stream of predictable income for life –?so you can have confidence you won’t run out of money.
?Do Plan Sponsors and Participants want these??The short answer is yes.?In a recent Nationwide Retirement Institute Survey more than 81% of Plan Sponsors believe their employees want guaranteed lifetime income options.?In the same survey,?8 in 10 participants are at least somewhat likely to roll over their current retirement savings into a guaranteed lifetime income option.?
This is a tremendous opportunity for?Financial Professionals?to educate not only Plan Sponsors but also Participants.?91% of Plan Sponsors trust?a Financial Professional to counsel on choosing the right options for the plan.?Don’t miss this opportunity!?
To learn more about the study from Nationwide click here: https://nationwidefinancial.com/consultant/in-plan-guarantees
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Chief Marketing Officer | Product MVP Expert | Cyber Security Enthusiast | @ GITEX DUBAI in October
2 年Chuck, thanks for sharing!
President, Income America | Champion for Guaranteed Income & Retirement Planning | 401(k)
3 年Chuck Hammond, AIF?, PPC?, CMFC? you nailed it - as you always do! The #retirement industry has done a decent job with the accumulation phase & educating participants on the need to save more in their #401k plans, but you are correct the next challenge is to help make those assets last a lifetime. All the advertising seems to be about getting to the "magic number" and then you can enjoy retirement. But the reality is people are used to spending and saving during working years based on their take-home pay and in retirement they want to know with some certainty what their "paycheck" is going to be. Social security is one component, but they then need to translate their savings into income. It's a BIG challenge. Throw in #behavioralfinance, the risk of the sequence of returns, inflation & the potential of catastrophic health challenges, and planning gets tougher. The final point is most for the #financialservices industry to listen to: PARTICIPANTS WANT #GUARANTEEDINCOME SOLUTIONS in their 401k plans. Thank you Chuck