In a Wealth Management RPA RealChat, Fred Barstein, Contributing Editor for Wealth Management’s RPA Omnichannel and CEO at TRAU, TPSU, and 401kTV, interviews Saumen Chattppadhyay, CIO at OneDigital, one of the largest DC advisory firms.
Fred asks Saumen about the trends he is seeing regarding plan sponsors, advisors, and participants adopting in-plan retirement income options. Saumen explains that the definition of income has shifted due to the Federal Reserve’s interest rate hikes, which have made high-yield savings accounts more attractive. This change necessitates a re-evaluation of what constitutes retirement income. He emphasizes that there is a growing awareness of the need to focus on decumulation strategies, not just accumulation, as retirees must now plan for drawing down their savings effectively.
Saumen identifies three primary approaches to incorporating income options within retirement plans. First, target-date funds that integrate income options are gaining popularity. OneDigital is currently developing a project to include these options in their target-date funds. Second, managed accounts are emerging as a dynamic QDIA (Qualified Default Investment Alternative) that can better handle both accumulation and decumulation phases, providing a more tailored approach for plan participants. OneDigital is reconstructing their advisor-managed account to include income options. Third, independent income funds are less commonly requested but remain a potential avenue for plan sponsors seeking to provide income solutions.
To view the full interview, visit WealthManagement.com’s RPA RealChat with Fred Barstein and Saumen Chattppadhyay.
