PLANADVISER - September/October 2022 - 22
beyond 401(k) / participant services
POTENTIAL
THE
Helping sponsors determine what retiree services
to offer plan participants
H
istorically, many plan sponsors have, on the whole, ignored participants retiring and
leaving the plan. Yet, there is a growing recognition by some plans of the benefits of
keeping retirees enrolled instead. As they typically have larger account balances than
do their younger counterparts, they can help the plan maintain its scale, allowing for better
pricing for the plan overall.
More than three-quarters of plan sponsors now prefer to retain retiree assets in their plans,
according to the 2022 PIMCO US Defined Contribution Consulting Study, a rate that has been
steadily growing since 2015.
But the financial needs of retirees are more heterogeneous-and more complex-than
those of working participants, says Joshua Schwartz, president of Retirement Plan Advisors in
Chicago. And, while 401(k) plans may offer institutional pricing, they are also typically more
limited in terms of the investment menu and flexibility for making withdrawals than are the
products and services the retiree might find in the retail space.
" So, plan sponsors today are looking at how they can create appropriate solutions that allow
people to do what they need to do in retirement within the plan, " Schwartz says.
Such solutions might include professionally managed investment accounts that may be
customized to the individual participant, whether to meet accumulation or decumulation/
income-replacement needs, he says. Plan sponsors are also considering providing all participants
with access to basic financial planning, including actionable recommendations.
The subject of supporting retirees is among the top five topics that come up during client
conversations, says Nathan Voris, director, investment insights and consultant services at
Schwab Retirement Plan Services in Richfield, Ohio. Yet, while plan sponsors are interested in
learning more about lifetime income and other solutions for their retiree participants, many
are not yet ready to implement these options.
" We're in a wait-and-see phase, where everyone is still trying to figure out the optimal solution, "
Voris says. " I don't think there's a playbook yet for what type of income solution is best for
22 | planadviser.com September-October 2022
Art by Julien Posture
T
P
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PLANADVISER - September/October 2022
Table of Contents for the Digital Edition of PLANADVISER - September/October 2022
The Possibilities Ahead
The Full Potential
2022 PLANADVISER National Conference
NQDC Investment Menus
Reg BI’s Impact on 403(b)s
PEPs’ Slow Growth
Scaling for the Future
Rollover Rules for 457(b) Plans
Jorge Bernal
PLANADVISER - September/October 2022 - Cover1
PLANADVISER - September/October 2022 - Cover2
PLANADVISER - September/October 2022 - 1
PLANADVISER - September/October 2022 - 2
PLANADVISER - September/October 2022 - 3
PLANADVISER - September/October 2022 - 4
PLANADVISER - September/October 2022 - 5
PLANADVISER - September/October 2022 - 6
PLANADVISER - September/October 2022 - 7
PLANADVISER - September/October 2022 - 8
PLANADVISER - September/October 2022 - 9
PLANADVISER - September/October 2022 - 10
PLANADVISER - September/October 2022 - 11
PLANADVISER - September/October 2022 - 12
PLANADVISER - September/October 2022 - 13
PLANADVISER - September/October 2022 - 14
PLANADVISER - September/October 2022 - 15
PLANADVISER - September/October 2022 - The Possibilities Ahead
PLANADVISER - September/October 2022 - 17
PLANADVISER - September/October 2022 - 18
PLANADVISER - September/October 2022 - 19
PLANADVISER - September/October 2022 - 20
PLANADVISER - September/October 2022 - 21
PLANADVISER - September/October 2022 - The Full Potential
PLANADVISER - September/October 2022 - 23
PLANADVISER - September/October 2022 - 24
PLANADVISER - September/October 2022 - 25
PLANADVISER - September/October 2022 - 2022 PLANADVISER National Conference
PLANADVISER - September/October 2022 - 27
PLANADVISER - September/October 2022 - 28
PLANADVISER - September/October 2022 - 29
PLANADVISER - September/October 2022 - NQDC Investment Menus
PLANADVISER - September/October 2022 - 31
PLANADVISER - September/October 2022 - Reg BI’s Impact on 403(b)s
PLANADVISER - September/October 2022 - 33
PLANADVISER - September/October 2022 - PEPs’ Slow Growth
PLANADVISER - September/October 2022 - 35
PLANADVISER - September/October 2022 - Scaling for the Future
PLANADVISER - September/October 2022 - 37
PLANADVISER - September/October 2022 - 38
PLANADVISER - September/October 2022 - Rollover Rules for 457(b) Plans
PLANADVISER - September/October 2022 - Jorge Bernal
PLANADVISER - September/October 2022 - Cover3
PLANADVISER - September/October 2022 - Cover4
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