PLANSPONSOR - August/September 2019 - 56
INVESTMENT FOCUS
Opportunities Grow
A
merican workers face enormous
challenges during their working
years: buying a home, getting
the children through college, saving for
retirement. But as more and more employers
wind down their traditional pension
arrangements and replace them with
defined contribution (DC) plans, workers
face a fourth financial challenge-
stretching a finite asset base to meet
monthly bundles of uncertain expenses
over an unknowable life span.
For the most part, retirees equipped
with only DC plans have had to navigate
this strait on their own or seek help
from an adviser. But plan sponsors are
becoming increasingly active in the postretirement
planning, investing and distribution
processes; the numbers are still
small but growing. And to create recipients
for those solutions, sponsors also are
increasingly motivated to keep employees
in their plan after they retire. " Some
sponsors are interested in 'doing the right
thing' for the people who have worked for
them for a long time and given their blood,
sweat and tears: 'The least we can do is
help them on the way out,' " says Micah
Fannin, a partner in the Chicago office of
Mercer Investments.
The proportion of sponsors offering
products or services that build, manage
and dole out " retirement income "
depends on the definition of that term
and who does the defining. According
to the 2018 PLANSPONSOR DC Survey:
Plan Benchmarking report, about 36% of
DC plan sponsors say they offer a systematic
withdrawal option-the most prevalent
approach. The feature covers distribution
only, however, and still leaves
investment to the participant.
56 PLANSPONSOR.com August - September 2019 Art by Nadja Zinnecker
Sponsors increasingly offer services aimed at 'retirement income'
In-plan income products that guarantee
a base benefit are provided by
15% of sponsors surveyed, and 7% offer
products in-plan that guarantee monthly
income. Retirement income products
typically appear at larger plans, but even
among those with $500 million-plus in
assets, only just over half of them use
systematic withdrawals.
Consulting firm Callan, recordkeeper
for mostly large plans, frames its
survey differently. According to its 2018
Defined Contribution Trends Survey,
50% of sponsors provide no retirement
income options, while 33% offer access
to a defined benefit (DB) plan, and 14%
make managed account or drawdown
services available.
Even if not explicitly labeled as retirement
savings vehicles, " Capital preservation
options, or fixed-income options, or
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PLANSPONSOR - August/September 2019
Table of Contents for the Digital Edition of PLANSPONSOR - August/September 2019
Reality Check
2019 PLANSPONSOR Target-Date Fund Survey
2019 PLANSPONSOR Participant Survey
2019 PLANSPONSOR National Conference
Opportunities Grow
Real Estate Has Been a Haven
Health Savings Strategies
PLANSPONSOR - August/September 2019 - C1
PLANSPONSOR - August/September 2019 - FC1
PLANSPONSOR - August/September 2019 - FC2
PLANSPONSOR - August/September 2019 - C2
PLANSPONSOR - August/September 2019 - 1
PLANSPONSOR - August/September 2019 - 2
PLANSPONSOR - August/September 2019 - 3
PLANSPONSOR - August/September 2019 - 4
PLANSPONSOR - August/September 2019 - 5
PLANSPONSOR - August/September 2019 - 6
PLANSPONSOR - August/September 2019 - 7
PLANSPONSOR - August/September 2019 - 8
PLANSPONSOR - August/September 2019 - 9
PLANSPONSOR - August/September 2019 - 10
PLANSPONSOR - August/September 2019 - 11
PLANSPONSOR - August/September 2019 - 12
PLANSPONSOR - August/September 2019 - 13
PLANSPONSOR - August/September 2019 - 14
PLANSPONSOR - August/September 2019 - 15
PLANSPONSOR - August/September 2019 - 16
PLANSPONSOR - August/September 2019 - 17
PLANSPONSOR - August/September 2019 - 18
PLANSPONSOR - August/September 2019 - 19
PLANSPONSOR - August/September 2019 - 20
PLANSPONSOR - August/September 2019 - 21
PLANSPONSOR - August/September 2019 - 22
PLANSPONSOR - August/September 2019 - 23
PLANSPONSOR - August/September 2019 - Reality Check
PLANSPONSOR - August/September 2019 - 25
PLANSPONSOR - August/September 2019 - 26
PLANSPONSOR - August/September 2019 - 27
PLANSPONSOR - August/September 2019 - 28
PLANSPONSOR - August/September 2019 - 29
PLANSPONSOR - August/September 2019 - 2019 PLANSPONSOR Target-Date Fund Survey
PLANSPONSOR - August/September 2019 - 31
PLANSPONSOR - August/September 2019 - 32
PLANSPONSOR - August/September 2019 - 33
PLANSPONSOR - August/September 2019 - 34
PLANSPONSOR - August/September 2019 - 35
PLANSPONSOR - August/September 2019 - 36
PLANSPONSOR - August/September 2019 - 37
PLANSPONSOR - August/September 2019 - 38
PLANSPONSOR - August/September 2019 - 39
PLANSPONSOR - August/September 2019 - 2019 PLANSPONSOR Participant Survey
PLANSPONSOR - August/September 2019 - 41
PLANSPONSOR - August/September 2019 - 42
PLANSPONSOR - August/September 2019 - 43
PLANSPONSOR - August/September 2019 - 44
PLANSPONSOR - August/September 2019 - 45
PLANSPONSOR - August/September 2019 - 2019 PLANSPONSOR National Conference
PLANSPONSOR - August/September 2019 - 47
PLANSPONSOR - August/September 2019 - 48
PLANSPONSOR - August/September 2019 - 49
PLANSPONSOR - August/September 2019 - 50
PLANSPONSOR - August/September 2019 - 51
PLANSPONSOR - August/September 2019 - 52
PLANSPONSOR - August/September 2019 - 53
PLANSPONSOR - August/September 2019 - 54
PLANSPONSOR - August/September 2019 - 55
PLANSPONSOR - August/September 2019 - Opportunities Grow
PLANSPONSOR - August/September 2019 - 57
PLANSPONSOR - August/September 2019 - Real Estate Has Been a Haven
PLANSPONSOR - August/September 2019 - 59
PLANSPONSOR - August/September 2019 - Health Savings Strategies
PLANSPONSOR - August/September 2019 - 61
PLANSPONSOR - August/September 2019 - 62
PLANSPONSOR - August/September 2019 - 63
PLANSPONSOR - August/September 2019 - 64
PLANSPONSOR - August/September 2019 - C3
PLANSPONSOR - August/September 2019 - C4
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