Navigating the shift from defined benefit to defined contribution retirement plans mirrors a daring mountain ascent, with retirement plan advisors (RPAs) assuming the role of seasoned guides. Much like expert mountaineers, RPAs are to lead participants along the intricate path toward financial security. They must begin by laying down foundational strategies such as auto-enrollment and managed funds, serving as the initial footholds for novices. However, the journey doesn’t conclude there. RPAs must also empower participants with the necessary tools and knowledge to navigate the often daunting terrain of retirement income, ensuring they achieve financial freedom.
Despite grappling with obstacles like opaque annuities and regulatory complexities, RPAs must embrace innovation, leveraging technology to guide participants toward their retirement objectives. By embracing emerging solutions such as pooled employer plans (PEPs) and harnessing the power of artificial intelligence, RPAs can chart a steady course through the landscape of retirement planning. With strategic foresight and a steadfast commitment to stewardship, RPAs guide participants on a transformative odyssey toward a secure financial future, empowering them to confront the challenges of retirement with poise and resilience.
Read more in Fred Barstein’s recent Wealth Management article, “Retirement Plan Advisors Must Now Become Defined Benefit Managers”
