In-plan retirement income has been a hot topic for years, with providers promising easier ways for employees to turn their 401(k) savings into lifetime paychecks. But even with big names like Fidelity, TIAA, and BlackRock pushing it, adoption has been slow. Why? Because real change in the retirement world only happens when three things line up: regulations, revenue, and real client demand.
Right now, the tools are there—managed accounts, smarter target date funds (TDFs), and other ways to create “synthetic pensions” without the risks of old-school pensions. But the gap between what people need and what they actually understand is still huge. It’s just like what happened with TDFs years ago: it took regulation and education to make them mainstream.
Fred Barstein says it’s time to stop thinking only about saving (the “ideal” plan) and start building plans that also help people spend their savings wisely in retirement (the “perfect” plan). It’s a shift that could be a game-changer for employers who want to help their employees and stay competitive.
For more on this, check out Fred Barstein’s full column on Wealth Management, “The Real Reason for Slow In-Plan Retirement Income Adoption.“
