Saturday, June 22, 2024

Workers are seeking a stable retirement income solution

Reversing the Trend: A Call to Action on Retirement Income Security

In a world where retirement income security is becoming increasingly uncertain, a recent white paper is calling for a change. The paper, titled “A Call to Action on Retirement Income, It’s Time to Solve the Problem,” emphasizes the need for employers and advisors to offer guaranteed lifetime income options to their employees.

Authored by Matthew Eickman and Bonnie Treichel, the paper highlights the risks and complexities that have made employers hesitant to provide retirement income security. It argues that as American workers face the possibility of outliving their retirement savings, there is a clear need to reverse the trend away from retirement income security.

The paper cites surveys showing that a significant percentage of employees prioritize a steady income stream in retirement. Additionally, the majority of plan participants believe that their employers should offer in-plan retirement income options and that guaranteed retirement income would positively impact their well-being.

Beyond participants’ preferences, the white paper emphasizes the fiduciary duty of employers and advisors to meet the needs of their employees. It calls for active exploration of retirement income solutions and encourages employers to engage in conversations with their advisors, consultants, and recordkeepers.

The authors point to signs that employer interest in retirement income is growing, as they recognize the implications of employees entering retirement with inadequate savings. They urge employers to take the first step by expressing genuine interest in exploring retirement income options with their service providers.

The paper also addresses common objections raised by advisors and consultants, such as concerns about risk, evaluation of options, and portability. It argues that statutory safe harbor provisions, internal resources, and new portability protections provided by the SECURE Act can address these objections.

In conclusion, the white paper stresses the importance of employers taking action to provide retirement income security to their employees. It highlights the growing need for access to retirement income and urges employers to work with their advisors to respond to this demand.

As the paper aptly states, “Why continue to say no when it is so important to be in a position to say yes?” It’s time for employers and advisors to prioritize retirement income security and ensure that American workers have the financial stability they need in their golden years.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The content is based on general research and may not be accurate, reliable, or up-to-date. Before making any financial decisions, it is recommended to consult with a professional financial advisor or conduct thorough research to verify the accuracy of the information presented. The author and publisher disclaim any liability for any financial losses or damages incurred as a result of relying on the information provided in this article. Readers are encouraged to independently verify the facts and information before making any financial decisions.

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