PLANADVISER - July/August 2022 - 36

plan design / post-retirement
New Territory for Income?
T
his year, as the stock market nose
dived and inflation hit fresh highs,
as
expectations
for
economic
growth declined, many investors were
reminded of a risk that
tends to be
forgotten during the good times: How
will they make money stretch over a
longer life span, and potentially with a
higher cost of living than expected?
Over the past 40 years, as defined
contribution plans have come to represent
a larger percent of retirement
income, individuals have been asked
to
shoulder
their
own
investment
and longevity risk, says Wade Pfau,
a professor at the American College
of Financial Services and author of
" The Retirement Planning Guidebook. "
Participants have been left to solve
for retirement income by themselves,
relying on market infrastructure, tools
and support that have traditionally
focused on the accumulation phase,
Pfau says.
Joseph Boan, managing director of
distribution and business development
for Annexus Retirement Solutions, in
Scottsdale, Arizona, says the industry is
at a retirement income inflection point.
Last year, 85% of DC plan participants
said they wished their employer's
retirement plan had an option to
help generate income once they retire,
according to Greenwald Research's
2021 In-Plan Insights Program survey,
and eight in 10 plan sponsors agreed
that participants need in-plan income
options.
" As an industry, we've been trying
guaranteed
to
solve
the
income
problem with little success, " Boan says.
" If we really want to drive better participant
outcomes, then we need to accept
that the reality is, people want income.
That's what the desired outcome
should be. "
Overall, the Greenwald survey indicates
that 75% of participants prefer
income stability over principal preservation,
according to the Employee
Benefit Research Institute in 2020. Yet,
Advisers and providers need to help solve the decumulation challenge
36 | planadviser.com July-August 2022 Art by Jam Dong

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PLANADVISER - July/August 2022

Table of Contents for the Digital Edition of PLANADVISER - July/August 2022

Balancing Act
Greater Access
Previewing Plan Features
A Different Way to Save
Next-Level Options
New Territory for Income?
Compliance for Wealth Managers
If Caught Off Guard by A Failure
Larry E. Crocker
PLANADVISER - July/August 2022 - C1
PLANADVISER - July/August 2022 - FC1
PLANADVISER - July/August 2022 - FC2
PLANADVISER - July/August 2022 - C2
PLANADVISER - July/August 2022 - 1
PLANADVISER - July/August 2022 - 2
PLANADVISER - July/August 2022 - 3
PLANADVISER - July/August 2022 - 4
PLANADVISER - July/August 2022 - 5
PLANADVISER - July/August 2022 - 6
PLANADVISER - July/August 2022 - 7
PLANADVISER - July/August 2022 - 8
PLANADVISER - July/August 2022 - 9
PLANADVISER - July/August 2022 - 10
PLANADVISER - July/August 2022 - 11
PLANADVISER - July/August 2022 - 12
PLANADVISER - July/August 2022 - 13
PLANADVISER - July/August 2022 - 14
PLANADVISER - July/August 2022 - 15
PLANADVISER - July/August 2022 - Balancing Act
PLANADVISER - July/August 2022 - 17
PLANADVISER - July/August 2022 - 18
PLANADVISER - July/August 2022 - 19
PLANADVISER - July/August 2022 - Greater Access
PLANADVISER - July/August 2022 - 21
PLANADVISER - July/August 2022 - 22
PLANADVISER - July/August 2022 - 23
PLANADVISER - July/August 2022 - Previewing Plan Features
PLANADVISER - July/August 2022 - 25
PLANADVISER - July/August 2022 - 26
PLANADVISER - July/August 2022 - 27
PLANADVISER - July/August 2022 - A Different Way to Save
PLANADVISER - July/August 2022 - 29
PLANADVISER - July/August 2022 - 30
PLANADVISER - July/August 2022 - 31
PLANADVISER - July/August 2022 - Next-Level Options
PLANADVISER - July/August 2022 - 33
PLANADVISER - July/August 2022 - 34
PLANADVISER - July/August 2022 - 35
PLANADVISER - July/August 2022 - New Territory for Income?
PLANADVISER - July/August 2022 - 37
PLANADVISER - July/August 2022 - Compliance for Wealth Managers
PLANADVISER - July/August 2022 - If Caught Off Guard by A Failure
PLANADVISER - July/August 2022 - Larry E. Crocker
PLANADVISER - July/August 2022 - Cover3
PLANADVISER - July/August 2022 - Cover4
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