The suite of retirement income products at Empower grew significantly with Thursday’s announcement that the Denver-based recordkeeper has added the Allianz Lifetime Income+ Annuity and the Putnam Retirement Advantage Income Series.
The expansion of the suite of retirement income products available on the Empower platform is meant to help bolster the choices retirement plan participants have as they seek ways to secure their assets.
The Allianz Lifetime Income+ Annuity is a fixed index annuity with a guaranteed lifetime income benefit offered by Allianz Life Insurance Company of North America (Allianz Life). The Putnam Retirement Advantage Income Series, trusteed by Great Gray Trust Company, LLC, which includes Putnam investments (a Franklin Templeton company) and TIAA’s Secure Income Account that can provide guaranteed lifetime income throughout retirement.
Empower launched a lineup of retirement income offerings earlier this year partnering with several asset managers and insurance providers. Today’s additions will help to accommodate retirement savers as they save through their workplace retirement plans to prepare for their future income needs, Empower said in a press release.
Recent Empower research indicates 88% of individuals want help from their workplace to create a personalized financial plan based on their needs and 52% know their financial goals but don’t know how to get there. In survey results, retirement plan participants express a range of concerns about income guarantees as they age. For example, in the latest Empowering America’s Financial Journey study, 61% of respondents expect that Social Security will be unavailable to them or will play a diminished role in supplying income in retirement. Just six in 10 Americans are confident their savings and investments will last until age 90.
“Partnering with Allianz Life and Franklin Templeton and adding more products like these to our current suite of income offerings will help provide confidence to many individuals as they prepare for the futures they’ve worked so hard to achieve.”
Empower’s Rich Linton
“One of the biggest concerns American workers have is the fear of outliving their retirement savings,” said Rich Linton, president and chief operating officer for Empower. “Partnering with Allianz Life and Franklin Templeton and adding more products like these to our current suite of income offerings will help provide confidence to many individuals as they prepare for the futures they’ve worked so hard to achieve. We want to assist with both sides of the retirement equation so we can help people go from success [in careers, jobs, as savers] to fulfillment and peace in retirement.”
Tina Wilson, chief product officer for Empower, said providing choices and solutions that are accessible and straight-forward for sponsors and participants is a key to help solving the engagement problem. “Every participant has their own unique circumstances and every path to retirement is different so we want to engage with leading market providers to ensure we are providing options to our customers that help meet their various needs.”
Wilson noted that personalization has an impact on the asset allocation that is recommended to a participant. Retirement age is a key factor to know when building a personalized portfolio in a managed account. Retirement plans typically offer a series of target date funds that allow participants to choose their year of retirement. Age 65 is not always the desired age of retirement. At Empower, data shows that 33% of individuals have modified their retirement age to something other than age 65 and with individuals over age 45, 66% have modified their retirement age demonstrating that personalization provides more tailored advice.
The Putnam Retirement Advantage Income target date fund (TDF), now available is an income solution tailored for participants, offering guaranteed lifetime retirement income and growth potential. This series employs tactical asset allocation and active security selection to help target the right risk at the right time along with a guaranteed income for life component. The guaranteed lifetime retirement income is a conversion option provided directly by TIAA.
“The introduction of the Putnam Retirement Advantage Income target date series is a game-changer for retirees seeking financial security,” said Steve McKay, Head of U.S. Retirement, Insurance, and College Savings at Franklin Templeton. “By merging the proven track record of our Putnam Retirement Advantage series with the guaranteed lifetime income component supported by TIAA, we’re offering a comprehensive solution that generates growth potential with reliable income. This is about giving retirees the confidence they need to enjoy their retirement without financial worry.”
Allianz Lifetime Income+ Annuity will be available at Empower beginning Jan. 1, 2025, through Empower’s integrated, personalized advice and planning solution, My Total Retirement or through retirement managed accounts with advisors, offered through Empower’s platform. This guaranteed lifetime retirement income solution offers both protection from market downturns and growth potential as well as the flexibility, portability, and personalization to meet the spectrum of evolving participant needs.
“This partnership aligns with our shared vision of increasing access to guaranteed lifetime income and it will allow participants to have a wider range of options to build and protect their future income,” said Matt Gray, head of employer markets, Allianz Life.
An Allianz press release today specified that Allianz Lifetime Income+ will be accessible to plan participants who enroll in Empower’s Managed Account and Advisor Managed accounts, powered by Morningstar Retirement. Morningstar Retirement provides research- and technology-driven products and services that help individuals reach their retirement goals.
“This collaboration enables individuals to tailor their retirement plans to align with their specific circumstances and goals,” said Brock Johnson, president, Morningstar Retirement. “By combining personalized advice with flexible products, we can help more investors reach for their desired retirement outcomes.”
Also in early 2025, plans will be able to access T. Rowe Price’s investment expertise within Empower’s managed account solution with the option to include Allianz Lifetime Income+. By pairing these elements, participants can experience an amplified impact on their income, receiving the investment advice they need while securing the reliable long-term needs they want.
SEE ALSO:
• Empower Introduces Newest Suite of Retirement Income Partnerships
• 401(k) Participants Express Strong Interest in Guaranteed Lifetime Income