Retirement income - Is it Nirvana or a bust?

o This is unquestionably a market defining moment. There’s a complex list of information contributing to the crisis. Fiduciary responsibility is something most plan sponsors know little about, let alone when it’s combined with product knowledge. This translates to an incredible opportunity for advisors, who can differentiate themselves in the value proposition they offer their clients by dissecting these complex issues.

o Three questions employees were supposedly not smart enough to answer; should I invest in the plan? How much should I invest in the plan? How do I allocate the investments in the plan? So regulators gave us automatic enrollment, automatic increases and QDIAs/target date funds. But the real issues deal with market and longevity risk; issues with which the investing public desperately needs help. Because regulators haven’t given safe harbor to products that address these issues, providers are sitting on the sidelines when it comes to their development. So regulators essentially got it backwards. They should have left the easier initial questions to the investing public, and given safe harbor to the more complex issues that address market and longevity risk.

Panelists included Fred Conley from Genworth Financial, Mark Fortier form Alliance Bernstein and James Lyday from Prudential Retirement. The moderator was National Retirement Partner’s Tim O’Brien. Overall, good panel.