Lifetime Income Solutions to Address Retirement Preparedness Concerns

Concerns about retirement preparedness are significant among both plan sponsors and employees, particularly those from Generation X, who feel the least prepared for retirement. The decline of traditional pensions and increased career mobility have exacerbated worries about outliving retirement savings. Industry experts Bonnie Treichel from Endeavor Retirement and Stacey Tovrov from Blackrock discussed in a Broadridge webinar that implementing lifetime income options within retirement plans can mitigate these concerns.

Lifetime income streams, such as annuities, offer a way to provide sustained financial security through retirement. Experts emphasize that these options can benefit employers by enhancing employee peace of mind, productivity, and aiding in recruitment and retention efforts. Providing flexibility, convenience, and cost-effective solutions are key considerations in integrating lifetime income options into retirement plans.

Education and clear communication are critical components for engaging plan participants in understanding the benefits and tradeoffs of lifetime income strategies. Plan sponsors are encouraged to offer retirement preparedness information, focus on benefit options, maximize Social Security strategies, and tailor investment choices based on employees’ life stages.

Implementing in-plan income options with resources possibly from external sources can relieve employers from the administrative burden of ongoing benefit management for former employees. Nonetheless, plan sponsors are advised to carefully manage plan amendments and ensure proper stakeholder involvement when introducing lifetime income provisions.

Ultimately, the choice to activate lifetime income benefits rests with the employees. Promoting informed decision-making through education and transparent plan design can support participants in better preparing for retirement income stability.