Who Will Get It Right On Lifetime Income: Plan Consultants or Financial Services Firms?
By: Mitch Shames
Retirement plan consultants regularly conduct client surveys. Recently, they have consistently been reporting that plan sponsors have little interest in lifetime income products. (various annuity-type options associated or imbedded within investment options) On the other hand, leading financial services firms, including household names in insurance and mutual fund products, have invested enormous resources, over the course of the last three to five years in developing sophisticated products which address the income needs of retirees.
Who is going to be correct?
Reading the tea leaves – Plan Sponsor, an informational and educational organization devoted to serving retirement plan decision-makers, will be holding its annual conference this June in Orlando and is devoting significant conference time to lifetime income products. In fact, I’ll be speaking at the conference and please track me down and introduce yourself.
While I’m not a betting man (good thing because I’m a professional fiduciary), my gut tells me that both the financial services firms and Plan Sponsor have done their market research. They don’t devote significant resources to a topic on a whim. Furthermore, financial services firms were spot on in introducing mutual funds and then eventually target date funds into the retirement savings market. History suggests that plan sponsors pay attention to these developments.
If you would like to speak with us about how Harrison Fiduciary goes about implementing and signing off on lifetime income products for retirement plans, please feel free to reach out. We would love to hear from you!