The latest T. Rowe Price study reveals a notable shift in how employers and advisors approach retirement income within workplace plans. More plan sponsors now hold defined views on retirement income compared to previous years, reflecting increased engagement on the topic.
Managed accounts with income planning features and target-date investments offering managed payouts or embedded annuities are gaining interest as viable solutions. Collective investment trusts (CITs) have also surpassed mutual funds as preferred target-date vehicles due to their cost-effectiveness and flexibility.
Additionally, the study highlights growing employer interest in financial wellness programs, including emergency savings accounts, as tools to enhance employee satisfaction and retention. While ESG integration garners moderate support, the study identifies regulatory and implementation challenges as barriers to broader adoption.
Finsum: Research shows how important advisors are to clients in setting up DC strategies, and they can leverage their influence to shift perspectives.
- defined contribution
- 401k
- managed accounts
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