Recordkeepers Must Prepare for In-Plan Annuities within Target Date Funds

Americans are increasingly concerned about securing their financial futures, highlighting the critical need for enhanced retirement income solutions. Recent research emphasizes the importance for recordkeepers to proactively prepare for integrating in-plan annuities, particularly within Target Date Funds (TDFs), as this approach is emerging as the preferred strategy among plan sponsors. Although some recordkeepers have been slow to adopt in-plan annuities, those who embrace this trend are offering plan sponsors significant new retirement income options. This market evolution presents both opportunities and challenges for recordkeepers, necessitating investment in technology integration, annuity expertise development, and comprehensive educational resources. Early adoption and preparation will give recordkeepers a competitive edge in this expanding sector focused on retirement income security.