PLANADVISER - January/February 2020 - 40
investment-oriented
Make It Last
Participants must choose income products that meet their individual needs
W
hen fortunate enough to receive large sums of money,
many people have trouble coping. Jay Zagorsky, an
economist at Boston University, found in his 2012
research that, among people in their 20s, 30s and 40s fortunate
enough to claim an inheritance, about half the money
was spent or lost in short order. Other academic research
indicates that winning a lottery is not a ticket to Easy Street-
winners save only a slim fraction of their windfall and, within
a few years, face an elevated chance of bankruptcy.
While receiving a lump sum at retirement might not hold
the same surprise as a golden ticket, people still have trouble
managing the money: A MetLife study in 2016 among about
1,000 adults receiving lump sums from retirement plans
or lawsuit settlements found that, on average, one in five
had depleted the funds within 5.5 years. Thus, to convert
their retirement savings into a stream of income that goes
the distance, retiring participants clearly need a retirement
income mindset, as well as investment vehicles that meet
their individual risk profile.
" Past efforts on withdrawals of retirement income didn't
get traction, " notes Dave Gray, head of workplace offerings
at Fidelity Investments in Boston. " But now the stars are
aligned-with a growing number of retirees, interest from
sponsors and the industry, and even the legislative environment
driving interest in retirement income benefits
through 401(k) plans. "
" In our latest survey of defined contribution [DC] participants,
we asked participants how much they would need
to save for an adequate retirement, and the median answer
was $1.7 million, " observes Nathan Voris, managing director
of business strategy at Schwab Retirement Plan Services in
Richfield, Ohio. " We think that's a pretty good goal to set. "
Few people have achieved that level. Fidelity reports that,
among its 30 million DC accounts, the average balance for
those ages 60 through 69 came to $201,000. For employees
in that age band with 10 years tenure at the same employer,
40 | planadviser.com January-February 2020
http://www.planadviser.com
PLANADVISER - January/February 2020
Table of Contents for the Digital Edition of PLANADVISER - January/February 2020
Ever Vigilant
Advisers Shine Light on CSR at Work
2020 PLANADVISER Micro Plan Survey
Building Better Engagement
Sharing Ownership
In Touch
Make It Last
Men as Advocates
MEPs and PEPs
Aset Allocation Models
PLANADVISER - January/February 2020 - Cover1
PLANADVISER - January/February 2020 - Cover2
PLANADVISER - January/February 2020 - 1
PLANADVISER - January/February 2020 - 2
PLANADVISER - January/February 2020 - 3
PLANADVISER - January/February 2020 - 4
PLANADVISER - January/February 2020 - 5
PLANADVISER - January/February 2020 - 6
PLANADVISER - January/February 2020 - 7
PLANADVISER - January/February 2020 - 8
PLANADVISER - January/February 2020 - 9
PLANADVISER - January/February 2020 - 10
PLANADVISER - January/February 2020 - 11
PLANADVISER - January/February 2020 - 12
PLANADVISER - January/February 2020 - 13
PLANADVISER - January/February 2020 - 14
PLANADVISER - January/February 2020 - 15
PLANADVISER - January/February 2020 - Ever Vigilant
PLANADVISER - January/February 2020 - 17
PLANADVISER - January/February 2020 - 18
PLANADVISER - January/February 2020 - 19
PLANADVISER - January/February 2020 - Advisers Shine Light on CSR at Work
PLANADVISER - January/February 2020 - 21
PLANADVISER - January/February 2020 - 22
PLANADVISER - January/February 2020 - 23
PLANADVISER - January/February 2020 - 2020 PLANADVISER Micro Plan Survey
PLANADVISER - January/February 2020 - 25
PLANADVISER - January/February 2020 - 26
PLANADVISER - January/February 2020 - 27
PLANADVISER - January/February 2020 - 28
PLANADVISER - January/February 2020 - 29
PLANADVISER - January/February 2020 - 30
PLANADVISER - January/February 2020 - 31
PLANADVISER - January/February 2020 - Building Better Engagement
PLANADVISER - January/February 2020 - 33
PLANADVISER - January/February 2020 - 34
PLANADVISER - January/February 2020 - 35
PLANADVISER - January/February 2020 - Sharing Ownership
PLANADVISER - January/February 2020 - 37
PLANADVISER - January/February 2020 - In Touch
PLANADVISER - January/February 2020 - 39
PLANADVISER - January/February 2020 - Make It Last
PLANADVISER - January/February 2020 - 41
PLANADVISER - January/February 2020 - 42
PLANADVISER - January/February 2020 - 43
PLANADVISER - January/February 2020 - Men as Advocates
PLANADVISER - January/February 2020 - 45
PLANADVISER - January/February 2020 - MEPs and PEPs
PLANADVISER - January/February 2020 - Aset Allocation Models
PLANADVISER - January/February 2020 - 48
PLANADVISER - January/February 2020 - Cover3
PLANADVISER - January/February 2020 - Cover4
https://www.planadviserdigital.com/planadviser/winter_2023
https://www.planadviserdigital.com/planadviser/fall_2023
https://www.planadviserdigital.com/planadviser/summer_2023
https://www.planadviserdigital.com/planadviser/industryleader_2023
https://www.planadviserdigital.com/planadviser/spring_2023
https://www.planadviserdigital.com/planadviser/november_december_2022
https://www.planadviserdigital.com/planadviser/september_october_2022
https://www.planadviserdigital.com/planadviser/july_august_2022
https://www.planadviserdigital.com/planadviser/may_june_2022
https://www.planadviserdigital.com/planadviser/industry_leader_awards_2022
https://www.planadviserdigital.com/planadviser/march_april_2022
https://www.planadviserdigital.com/planadviser/january_february_2022
https://www.planadviserdigital.com/planadviser/november_december_2021
https://www.planadviserdigital.com/planadviser/september_october_2021
https://www.planadviserdigital.com/planadviser/july_august_2021
https://www.planadviserdigital.com/planadviser/may_june_2021
https://www.planadviserdigital.com/planadviser/march_april_2021
https://www.planadviserdigital.com/planadviser/january_february_2021
https://www.planadviserdigital.com/planadviser/november_december_2020
https://www.planadviserdigital.com/planadviser/september_october_2020
https://www.planadviserdigital.com/planadviser/july_august_2020
https://www.planadviserdigital.com/planadviser/may_june_2020
https://www.planadviserdigital.com/planadviser/march_april_2020
https://www.planadviserdigital.com/planadviser/january_february_2020
https://www.planadviserdigital.com/planadviser/november_december_2019
https://www.planadviserdigital.com/planadviser/september_october_2019
https://www.planadviserdigital.com/planadviser/july_august_2019
https://www.planadviserdigital.com/planadviser/may_june_2019
https://www.planadviserdigital.com/planadviser/march_april_2019
https://www.planadviserdigital.com/planadviser/january_february_2019
https://www.planadviserdigital.com/planadviser/november_december_2018
https://www.planadviserdigital.com/planadviser/september_october_2018
https://www.planadviserdigital.com/planadviser/july_august_2018
https://www.planadviserdigital.com/planadviser/may_june_2018
https://www.planadviserdigital.com/planadviser/march_april_2018
https://www.planadviserdigital.com/planadviser/january_february_2018
https://www.planadviserdigital.com/planadviser/november_december_2017
https://www.planadviserdigital.com/planadviser/september_october_2017
https://www.planadviserdigital.com/planadviser/july_august_2017
https://www.nxtbookmedia.com