The StoneStreet Renaissance CEO speaks to mid and large-market requirements in particular.
401K Specialist and Barbara Delaney discuss the future challenges in the 401k industry, particularly focusing on how to assist the next generation of retirees who will not have defined benefit plans.
Key points include:
1. **Retirement Planning Challenges**: Delaney highlights the need for new solutions to help retirees draw down their money successfully without significant losses, particularly for those retiring without defined benefit plans.
2. **Role of Behavioral Finance**: She suggests that incorporating behavioral economics and finance techniques could be essential in connecting with the younger generation of retirees.
3. **Need for Simpler Solutions**: Delaney emphasizes the importance of developing simple, understandable, and possibly guaranteed financial products, such as institutionalized fixed annuities, to protect retirees from market downturns.
4. **Engagement of Plan Sponsors**: She also stresses the necessity for plan sponsors to be more engaged and for the industry to push forward with solutions despite potential resistance from record keepers who might see these changes as a threat to their revenue streams.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
