The Institutional Retirement Income Research Council (IRIRC) has taken up the mandate of what it says is the urgent issue of evaluating decumulation strategies for retirement to help everyone in the industry make the best decisions for the coming wave of retirees. The think tank, made up of about 15 investment consulting, actuarial, financial planning, and even an academic consultant (Dr. Jeffrey Brown from University of Illinois) had its first open meeting in November and issued a Call to Action white paper. The Council, which is underwritten by Prudential Retirement, is independent, IRIRC says. Its next project is assessing the “new generation” of defined contribution retirement income options.
“We are very concerned that participants are not prepared” for figuring out how to have income throughout their retirement, says Martha Spano, co-chair of the IRIRC and west division practice leader for Watson Wyatt’s investment consulting practice. Her fellow co-leader is Marty Schmidt of MAS Advisors in Pallatine, Illinois.
The Council wants to open a dialogue about how retirement income options should be incorporated into 401(k) and 403(b) plans, and to help DC plan consultants and their advisors make the best choices in their deliberations.