Most plan structures today still don’t accurately reflect the urgent need to empower participants to efficiently secure income. Successfully entrenching income options in employer-sponsored retirement plans will also call for redirecting some robust participant allocations currently not geared toward income at all.
There are few doubts that guaranteed income is the future. But, what’s required to ensure a smooth transition is for more sponsors to move energetically to better align key plan design features, the default in particular, with income objectives — and actively combat inertia and point participants toward their income opportunity.
