Employers are becoming more concerned about employees’ access to income during their retirement and are questioning whether target-date funds, the default investment option for the majority of 401(k) plans, do a good job of providing such income, according to a recent survey by TIAA.
The survey shows that 75% of employers responding said target-date funds do extremely well or very well when it comes to helping workers save for retirement, down from 87% in a previous survey in 2020. Just 66% say TDFs do extremely well or very well when it comes to helping plan participants deal with their income needs during retirement, down from 78% in 2020.
In response to a question about their plan’s features, 38% of employers said the biggest feature their plan lacks is access to guaranteed lifetime income.
Currently, just 34% of the employers surveyed offer a guaranteed lifetime income option in their retirement plan.
Providers have begun to roll out TDFs that offer lifetime income. Seventy-two percent of the employers surveyed by TIAA said they’d be interested in a TDF that allocated to a guaranteed lifetime income solution as participants near retirement.
[More: Annuities are heading to 401(k)s]
While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.
New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.
With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.
A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.
"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
