Overcome retirement income barriers

There are processes to overcome these four barriers to offering in-plan retirement income solutions.


Institutionally priced retirement income products cost less than their retail equivalents and provide more security to participants. When sponsors compare fees included in plan costs to fees participants would pay if they purchased retail solutions, some plan sponsors feel the benefits to participants outweigh the potential costs to the plan.1 




Participants who have a distributable event always have the option to roll over their assets and preserve the guarantee and security of the plan account. In addition, middleware solutions can connect retirement income products across providers. Pending legislation may simplify portability and eliminate this concern for plan sponsors.



Fiduciary risk

Legislative trends show support of lifetime income options by policymakers. To uphold your fiduciary responsibilities, follow a prudent process when evaluating and choosing a provider. Pending legislation includes a prescriptive fiduciary safe harbor that may eliminate this concern for plan sponsors.2



Participant demand

Four out of five participants want to put some or all of their money in guaranteed lifetime income products. Mitigating retirement income risks and preserving retirement assets for more than 30 years can be difficult for many participants, but they can’t verbalize the support they need to their employers.3



These four barriers don’t have to be show stoppers. They’re simply considerations in your decision about offering an in-plan retirement income solution. These four barriers become part of the conversation as you decide how to offer income from your retirement plan.

1Insured Retirement Institute 2018 - IRI First Quarter 2018 Annuity Sales Report http://irionline.org/research/research-detail-view/iri-issues-first-quarter-2018-annuity-sales-report

2Drinker Biddle & Reath LLP, Lincoln Secured Retirement IncomeSM Solution: Fiduciary Process in Evaluating In-Plan Guarantees, October 2017.

3Cerulli 2018 - Participants Are ‘Generally Clueless’ About DC Plan Decumulation. https://www.plansponsor.com/cerulli-participants-generally-clueless-dc-plan-decumulation/