PLANSPONSOR - October-November 2022 - 30

INVESTMENTS | RETIREMENT INCOME
New Solutions
T
he retirement wave keeps rolling.
The Schwartz Center for Economic
Policy Analysis reported that, from
March 2020 through this February, the
number of retiring workers between ages
55 and 74 expanded beyond the pre-pandemic
trend by an additional 1.1 million
people. Demographics indicate that
the
surge will likely continue.
" According to the U.S. Bureau of
Labor Statistics, in 2020 approximately
one-quarter (24%) of the workforce was
over 55, versus 18.9% in 2008, " says Josh
Cohen, head of client solutions at PGIM
DC Solutions in Newark, New Jersey. " The
demographic shift is compounded by the
fact that this generation of workers is more
reliant on defined contribution plans than
defined benefit plans. "
At the same time, interest in guaranteed
lifetime income investment options
has grown, according to Nationwide's
The demand for retirement income is increasing exponentially
2022 " In Plan Sponsor Survey Report. "
The survey for the study found that
more than half of employees are interested
in contributing to a guaranteed lifetime
income investment option included
as part of a target-date fund, an 11-point
increase since last year-53% vs. 42%,
respectively. Forty-eight percent reported
they are interested in contributing to such
an option included as part of a managed
account. Roughly two in five employees
(41%) said they would likely roll over
retirement savings into a guaranteed lifetime
income investment option if they
could, a 6-point increase since last year.
Participants'
interest
in
guaranteed
income is understandable. Wei Hu,
Ph.D., vice-president, financial research
at Edelman Financial Engines in Santa
Clara, California, notes that retirees and
near-retirees face complicated choices
and challenging economic conditions.
30 PLANSPONSOR.COM October - November 2022 Art by Sam Silverman
" Previously, low interest rates made it
infeasible to just 'spend the interest' from
fixed-income portfolios, " he says. " Now,
though we are seeing higher interest
rates, it comes with a new worry: high
inflation. Also, falling bond and stock
prices have taken a big bite out of retirement
nest eggs, and bonds have had the
worst year on record. "
Early Efforts and
Recent Developments
The interest in providing DC plan participants
with retirement income options
is not new. An August SEI white paper,
" Innovations for In-Plan Retirement
Income, " described insurers' previous
efforts to gain traction with DC plans.
Between 2004 and 2009, Genworth, John
Hancock, MetLife and Prudential introduced
products that included annuities
and some version of guaranteed lifetime
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PLANSPONSOR - October-November 2022

Table of Contents for the Digital Edition of PLANSPONSOR - October-November 2022

INSIGHTS
INDUSTRY ANALYSIS
RULES & REGULATIONS
UPFRONT
Deep Dive
Managing Volatility
New Solutions
Participant ESG Demands
Good Practices
FIDUCIARY FORUM
INSIDE ANGLE
PLAN PROFILE
PLANSPONSOR - October-November 2022 - Cover1
PLANSPONSOR - October-November 2022 - Cover2
PLANSPONSOR - October-November 2022 - 1
PLANSPONSOR - October-November 2022 - INSIGHTS
PLANSPONSOR - October-November 2022 - 3
PLANSPONSOR - October-November 2022 - RULES & REGULATIONS
PLANSPONSOR - October-November 2022 - 5
PLANSPONSOR - October-November 2022 - 6
PLANSPONSOR - October-November 2022 - 7
PLANSPONSOR - October-November 2022 - 8
PLANSPONSOR - October-November 2022 - 9
PLANSPONSOR - October-November 2022 - UPFRONT
PLANSPONSOR - October-November 2022 - 11
PLANSPONSOR - October-November 2022 - 12
PLANSPONSOR - October-November 2022 - 13
PLANSPONSOR - October-November 2022 - 14
PLANSPONSOR - October-November 2022 - 15
PLANSPONSOR - October-November 2022 - Deep Dive
PLANSPONSOR - October-November 2022 - 17
PLANSPONSOR - October-November 2022 - 18
PLANSPONSOR - October-November 2022 - 19
PLANSPONSOR - October-November 2022 - 20
PLANSPONSOR - October-November 2022 - 21
PLANSPONSOR - October-November 2022 - 22
PLANSPONSOR - October-November 2022 - 23
PLANSPONSOR - October-November 2022 - 24
PLANSPONSOR - October-November 2022 - 25
PLANSPONSOR - October-November 2022 - Managing Volatility
PLANSPONSOR - October-November 2022 - 27
PLANSPONSOR - October-November 2022 - 28
PLANSPONSOR - October-November 2022 - 29
PLANSPONSOR - October-November 2022 - New Solutions
PLANSPONSOR - October-November 2022 - 31
PLANSPONSOR - October-November 2022 - 32
PLANSPONSOR - October-November 2022 - 33
PLANSPONSOR - October-November 2022 - Participant ESG Demands
PLANSPONSOR - October-November 2022 - 35
PLANSPONSOR - October-November 2022 - Good Practices
PLANSPONSOR - October-November 2022 - 37
PLANSPONSOR - October-November 2022 - FIDUCIARY FORUM
PLANSPONSOR - October-November 2022 - INSIDE ANGLE
PLANSPONSOR - October-November 2022 - PLAN PROFILE
PLANSPONSOR - October-November 2022 - Cover3
PLANSPONSOR - October-November 2022 - Cover4
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