When people fail to save enough for retirement, it often just comes down to a lack of access and awareness. The classic movie line, “If you build it, they will come” is just as true for DC plan income features as ball fields. Among retirees, some 45% said that if their employer had offered them an investment strategy that translated savings into guaranteed income, they would have participated. In our view, the number would be even higher if the strategy provided flexibility and total participant control.
No Time Like the Present to Solve Future Income Needs
For retirees experiencing financial challenges, it’s too late to course correct now. The time to think about retirement planning isn’t in retirement but decades before it. The challenges of some retirees, however, serve as important lessons for sponsors who want to help participants avoid the same issues—they simply need the tools and information to get it done.
With the benefit of 20/20 retiree hindsight and real-time participant sentiment in their corner, DC plan sponsors have a great vantage point. From there, it’s a straight path to adopt effective in-plan lifetime income solutions, financial wellness programs and even retiree outreach initiatives, all of which plan participants favored highly in our survey.