PLANADVISER - January/February 2019 - 20

trendspotting
2019 Agendas: Retirement Income
Plan sponsors are increasingly open to creative solutions
AS managing director for institutional
financial services at TIAA, Mark Foley
frequently speaks with plan sponsor
clients about their evolving goals
and expectations in offering defined
contribution (DC) retirement benefits
to employees.
Like other executives working at
both established and up-and-coming
recordkeepers, Foley says 2018 was
a big year, for both his firm and its
clients-and for the broader retirement
services industry.
... the lifetime
income conversation
among DC plan
sponsors " is really
ramping up. "
" Especially from my perspective
being in charge of default solutions,
it [was] a very busy year in terms
of working with plan sponsors on
improving their plans and creating
innovative solutions to long-standing
challenges, " Foley says. " We have
been doing a lot of work to continue
to enhance and broaden the use of
custom approaches to default offerings,
and we're pleased with the steps
our clients are taking to address
participant outcomes. "
According to Foley, clients increasingly
ask for help to address lifetime
income within the DC plan context.
" This is another very positive
development we saw in 2018, " he says.
" When we can get lifetime income
solutions linked up with the default
options in a plan, we know this can be
a powerful combination for improving
participant outcomes and confidence
about retirement. "
Foley says
the lifetime income
conversation among DC plan sponsors
" is really ramping up, " but one of
the persistent challenges is being able
to actually operationalize this type of
a solution.
" I joined TIAA from Prudential, and
when I was there I was directly involved
in
its
plan-linked
lifetime
income
products, " he notes. " So, I can say I've
been in the trenches on this issue for
some time. My assessment is that the
industry is only now getting to the point
TALKING POINTS
Optimism Abounds for 2019
Seventy-five percent of Americans expect
to be better off financially in the new year.
Source: Fidelity Investments
For 2019, Many Americans
Resolve to ...
48%
Save more
Source: Fidelity Investments
K - 12 Market Benefits With Advisers
The median account balance for K - 12
educators who work with a financial
professional is $40,000 vs. $21,000 for those
who don't work with one.
Source: AXA Equitable Life
18 | planadviser.com January-February 2019
29%
Pay down
debt
15%
Spend less
where we can offer this type of solution
in a pretty straightforward way. We can
make it relatively simple for the participants
and the sponsors. " Whether
talking about clients using customized
solutions or those going with prepackaged
default products, Foley says
conversations about fee transparency
also remain front and center in the face
of the new year. -John Manganaro
http://www.planadviserdigital.com/planadviser/january_february_2019/TrackLink.action?pageName=18&exitLink=http%3A%2F%2Fplanadviser.com
PLANADVISER - January/February 2019

Table of Contents for the Digital Edition of PLANADVISER - January/February 2019
