Jen DeLong: We have seen an increase in interest from both plan sponsors and consultants that they work with, in understanding and learning more about the lifetime income solutions that are currently available.
I think we’re going to see a lot of product development by many different providers. And I think that’s already under way, even though Washington has not yet gotten through some of these retirement enhancements that we’re talking about. What seems of most interest to both the consultants and to the plan sponsors?
Andrew Stumacher: Two things. Certainty and control. Plan sponsors wanting to make sure that whatever they choose for their plan is flexible. They have a lot of different people in situations, in the plan. And they don’t want something that’s a sort of “one size fits all,” but has the ability to adjust to [an] individual’s circumstances. That there’s some control and there’s the sense of nothing irrevocable for participants to do. And at the same time, they want it really made easy. They want something that is operationally feasible—that’s not going to require a lot of oversight on their part. And communications is such a big part of retirement income solutions and being successful with them. Because again, if we can’t communicate those benefits to people, as to what the insurance does for them or what the income solution does for them, it’s not going to help motivate those behaviors that we want, such as saving more or staying the path even when markets are going in the direction that we don’t want to see.
The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams.