XSolving for
Putting retirement income planning front and center
As Baby Boomers reach traditional retirement age at an increasingly rapid pace,
with the availability of traditional retirement income sources such as pensions and
Social Security under pressure, and doubts about the adequacy of voluntary retirement savings levels, people must find innovative ways to maintain their standard
of living far beyond their working careers. After years of educating participants
about the need to accumulate retirement savings, the retirement plan industry
now is beginning to focus on the importance of attending to the impending issue
of helping retirees properly decumulate the fruits of their retirement savings
endeavors in retirement planning’s “second stage.”
That already has brought a new generation of retirement income solutions to
market—and that is an opportunity for financial advisers who will play an essential role in introducing and integrating retirement solutions as those at or near
retirement attempt to make the right choice for their anticipated future, and
plan balance. Products already capitalizing on this notion include traditional but
tailored annuities, in-plan retirement income options, and distribution funds.
Earlier this year, PLANADVISER surveyed advisers about the retirement readiness of their clients and plan participants and asked about their involvement in
retirement income planning and product knowledge of the various solutions being
introduced by investment companies. On the pages that follow are the results of
that survey, and a primer of sorts about the varied retirement income products
available in the marketplace. —PA
