State Street Global Advisors announced this week that its IncomeWise Target Retirement Strategies will be made available on the Voya Financial recordkeeping platform, marking a major milestone in the expansion of the solution’s availability across the industry.
The ABA Retirement Funds Program will be the first adopter on the Voya Financial recordkeeping platform. Mercer Trust Company LLC serves as the investment fiduciary for the ABA Program.
Voya also intends to make IncomeWise available to additional eligible clients in the future, making Voya the second recordkeeper making IncomeWise available, after Fidelity Investments. IncomeWise and related custom target-date strategies now have more than $20 billion in committed assets.
“Working together with Voya is a significant step in making IncomeWise accessible to a broader audience of retirement savers, including plan sponsors and participants within the ABA Program,” said Brendan Curran, Head of US Retirement at State Street Global Advisors. “Americans face increasing complexity in retirement planning, and IncomeWise offers a flexible approach to help participants build confidence in their financial futures.”
IncomeWise blends the simplicity of traditional index-based target-date funds with the option for participants to activate income across part or all of their target-date fund balance. Through a simple two-step election process, participants can choose to activate two integrated income features: deferred annuity payments for lifelong security and automatic monthly withdrawals that provide a structured spend-down option. The combination offers both flexibility and longevity protection, helping participants create a retirement income strategy that aligns with their needs.
“We welcome the opportunity to support the ABA Program in providing its plan sponsors and participants with a growing set of tools to help improve future retirement outcomes,” said Ginger Brennan, head of ABA Retirement Funds Program and Multiple Employer Solutions at Voya Financial. “This is the next step in expanding the ABA Program’s Retiree Menu, which provides participants nearing or in retirement with custom investment options and education, by now providing solutions for those individuals wanting the assurances that come with guaranteed income.”
Established more than 60 years ago by the American Bar Association, the ABA Retirement Funds Program sponsors a full-service retirement solution for legal community organizations. The adoption of IncomeWise further reflects the ABA Program’s focus on participant outcomes and retirement plan innovation.
State Street Global Advisors—the asset management business of State Street Corporation that is the world’s fourth-largest asset manager with $4.73 trillion under care—said the expansion aligns with its commitment to provide participants with innovative and flexible retirement solutions.
Voya Financial has approximately 15.7 million individual, workplace and institutional clients while Benefitfocus, a Voya company and a leading benefits administration provider, extends the reach of Voya’s workplace benefits and savings offerings by engaging directly with approximately 11.9 million employees in the U.S.
SEE ALSO:
• 401GO Partners With isolved on Retirement Plan Offering
• Voya Buys OneAmerica’s Retirement Business
• State Street Embeds Annuity in New Target Date Series
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.