What is the story about?
What's Happening?
As U.S. workers increasingly change jobs, retirement income options are evolving to accommodate this trend. The Employee Benefit Research Institute's Virtual Policy Forum highlighted that workers typically remain in a job for about five years, impacting their retirement plan participation and income withdrawal options. In-plan retirement income options are rapidly developing, including systematic withdrawals, hybrid target date funds, and managed accounts with annuity options. These options offer customization and personalization, helping workers balance decumulation needs in retirement. However, participant engagement remains a challenge, as many workers only consider retirement planning closer to retirement age.
Why It's Important?
The frequent job changes among U.S. workers necessitate adaptable retirement income solutions to ensure financial security in retirement. The evolving options provide flexibility and personalization, catering to diverse demographic needs. As plan sponsors explore these options, they must consider participant engagement and education to maximize the benefits. The shift towards hybrid and managed accounts reflects a broader trend in retirement planning, emphasizing the need for innovative solutions that address the changing workforce dynamics.
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