Plan sponsors and recordkeepers agree that a focus on retirement income will be one of the biggest retirement practice trends to emerge in the near future, new research reveals.
MetLife, New York, disclosed this finding in a new report, “Retirement Income Practices Study: Perspectives of Plan Sponsors and Recordkeepers for Qualified Plans. The study examines the dynamics of the plan sponsor-recordkeeper relationship with regard to the provisioning of lifetime income options in qualified plans.
The study also assesses whether, and to what extent, plan sponsors of defined benefit (DB) and defined contribution (DC) plans and recordkeepers are communicating about – and closely coordinating their efforts to offer – retirement income education, strategies and solutions for their participants.
Ten of the 12 recordkeepers surveyed say an increasing focus on retirement income is among their top predictions for the next three-to-five years. And one-third of plan sponsors agree–the most frequently cited prediction among this group.
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The report adds that plan sponsors favor a self-service approach to modeling retirement income projections for their plan participants, but note that a “do-it-yourself” model is not taking hold among participants. The majority of recordkeepers surveyed estimate that 25% of plan participants or fewer have projected their retirement income.