Fi360 Announces Formation of ‘Lifetime Income Consortium’

Lifetime Income Consortium

Image credit: © Andrii Yalanskyi | Dreamstime.com

Broadridge Fi360 Solutions, data provider Cannex, and Fiduciary Insurance Services have teamed to initiate a Lifetime Income consortium to promote the need for guaranteed income options within retirement plans.  

Broadridge Fi360 Solutions’ Head John Faustino said between eight and 10 firms have expressed strong interest in participating, and Nationwide and Alliance Bernstein have already committed.

John Faustino

“This initiative is targeted at catalyzing lifetime income adoption for the industry overall,” Faustino explained. “We believe that by working together, we can create a rising tide that will lift all ships.”

The consortium’s mission is, “To provide an expertly-substantiated framework and evangelism which enables plan fiduciaries to extend the scope of their advice and implementation capabilities beyond to-retirement solutions, into the through-retirement solutions.”

Asked about how it differs from the Alliance for Lifetime Income, Faustino said the latter is a nonprofit 501(c)(6) educational organization based in Washington, D.C. that creates awareness and educates Americans about the value and importance of lifetime income in retirement.

“While our missions are complementary, we’re more plan-centric and focus on addressing roadblocks to adoption outside of just execution,” he added. “Our consortium will be run by a for-profit, Broadridge, and focused on accelerating the adoption of retirement income through employer-based plans.”

The consortium’s development and implementation is broken out into four phases, and the founders are looking for commitments for Phases 1 and 2 (first 12 months), with an opportunity to shape and participate in go-forward phases. 

“Central to our perspective is that lifetime income must add real value to participants and be profitable for advisors and product providers for it to be successful,” they added.

The four phases are as follows:

PHASE No. 1: One to Nine Months

 PHASE No. 2: 10 to 12 Months

PHASE No. 3: 13 to 24 Months

 PHASE No. 4: 25-Plus Months (Steady State)

“We expect to secure commitments by the end of the year and actively begin collaborative efforts in January,” Faustino concluded.

For more information, contact John Faustino at John.Faustino@Broadridge.com and 708-769-0218.

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