Northwestern Mutual CEO to retire
Northwestern Mutual CEO John E. Schlifske announced his plans on Thursday to retire at the end of the year, in accordance with the company’s long-standing mandatory retirement age policy. Schlifske will retire on December 31, 2024, after working as CEO for 14 years and for the company for 37 years.
Northwestern Mutual’s exclusive distribution system grew from 6,000 to nearly 8,000 advisors during Schlifske’s tenure as CEO. Today, the company has more than five million total clients across all product lines and reported an all-time high revenue in 2022 of nearly $35 billion – an increase of more than 50% from $23 billion in 2010, when Schlifske became CEO.
The company’s wealth business also experienced significant growth during this time, increasing from $53 billion of total client assets in 2010 to $257 billion last year. Coupled with the company’s general account, overall Northwestern Mutual’s managed investments are more than $570 billion.
“It’s been a pleasure to serve Northwestern Mutual for nearly four decades. I have a deep sense of pride and gratitude for Northwestern Mutual, our dedicated employees and field force of advisors, and a noble mission that plays such a critical role for our clients’ financial well-being,” said Schlifske in a statement.
Tim Gerend, executive vice president and chief distribution officer will serve as the next CEO, effective on January 1, 2025. As part of the leadership change, Gerend will transition from his current role and assume the position of president at Northwestern Mutual. Schlifske will remain chairman of the Board of Trustees through January 2025, at which time Gerend will assume the role.
Gerend joined Northwestern Mutual in 2002 as an attorney. He assumed his existing role in 2018 and is currently accountable for Career Distribution, Marketing, and Strategic Communications across the company.
“I am humbled and honored to accept the role of CEO,” Gerend said. “I’ve had a front-row seat to the efforts that have driven Northwestern Mutual to become an integrated financial security company providing insurance and wealth management offerings to our clients. John’s leadership and guidance over the years has been invaluable to me and other company leaders. I’m confident that with our talented employees and financial advisors, we will continue the momentum that John has created during his tenure.”
MissionSquare Research names retirement research head
MissionSquare Research Institute has appointed Dr. Zhikun Liu as vice president, head of Retirement Research. Liu will assume his role on February 5, 2024.
“As public sector leaders grapple with a broad range of workforce challenges, ranging from recruitment to retirement, Dr. Liu’s extensive financial industry and academic experience positions him as the right leader at the right time,” said Deanna J. Santana, acting chief executive officer and president of MissionSquare Retirement. “Under his guidance, the Institute will continue its mission of delivering high-quality research that informs decision-making to support the public service workforce.”
It is my honor to lead MissionSquare Research Institute,” says Liu. “The Institute plays a fundamental role in providing actionable research that policymakers and stakeholders need to strengthen our public workforce. I look forward to continuing the legacy of impactful research, working alongside a team of accomplished researchers, collaborative partners, and engaged policymakers.”
Before joining MissionSquare Research Institute, Liu held roles at the Employee Benefit Research Institute (EBRI) and Empower Retirement, where he contributed to the advancement of methodologies in financial wellness and retirement readiness.
Notably, he developed and established financial planning models and engines, such as the Ballpark E$timate financial engine, My Total Wealth model, and the Financial Wellness Scoring System.
Liu served as an academic at Texas Tech University, Oklahoma State University, and the University of Texas, teaching a diverse range of courses, including economics, personal finance, and mathematics.
Prudential announces new annuity product with Fidelity
Prudential Financial, Inc. is collaborating with Fidelity Investments to launch the Prudential SimplyIncomeSM, a single-premium immediate annuity within employer-based retirement plans administered by Fidelity Investments. Prudential is one of four insurers on Fidelity’s Guaranteed Income Direct platform offering an embedded distribution option for defined contribution (DC) plans like 401(k)s, 403(b)s and 457(b)s.
“No one knows how long they’ll live, and it’s important for people to understand whether they will be at risk of running out of money in retirement,” said Ann Nanda, head of Future Growth Initiatives and Distribution Enablement at Prudential Retirement Strategies. “Prudential SimplyIncome provides a new decumulation option for plan participants looking for a predictable retirement income solution, delivered through a streamlined, tech-forward experience on Fidelity’s Guaranteed Income Direct platform.”
“Prudential SimplyIncome is an example of how we are co-creating innovative solutions for employer-based retirement plans, in this case working with a top plan administrator to bring a protected income option to plan sponsors and participants within a system they already know.” Nanda continued. “It’s an additional option to complement the many great solutions that exist for individual retirement account owners outside of workplace plans.”
SEE ALSO:
- Fidelity Rolls Out Immediate Income Annuity for Retirement Plan Participants
- Betterment at Work Launches Student Loan 401(k) Matching Solution
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
