T. Rowe Price is launching its Managed Lifetime Income (MLI), a retirement solution designed to provide retirees in a defined contribution (DC) plan with stable and predictable monthly income for life.
MLI combines a managed payout investment from T. Rowe Price with a qualifying longevity annuity contract (QLAC) from Pacific Life.
The solution is the latest one by T. Rowe Price, who first introduced its Retirement Income 2020 product in 2017, followed by Retirement Income 2025. T. Rowe Price notes that MLI now expands on the managed payout investment portion by adding a guaranteed component.
“T. Rowe Price recognizes the diverse retirement income needs of plan participants and is committed to offering a wide range of solutions to empower them with choice and flexibility,” said Francisco Negrón, head of Retirement Plan Services at T. Rowe Price. “We understand that a common concern among retirees is whether they will have sufficient income for their remaining years. The introduction of MLI underscores our dedication to ensuring retirees can feel financially secure about their future.”
Participants who choose MLI will receive payments from the managed payout investment for the first 15 years of retirement, and then guaranteed QLAC payments from the insurer will continue for the participant’s lifetime. T. Rowe Price accepts the fiduciary responsibility for the selection and monitoring of the QLAC provider.
“Our collaboration with T. Rowe Price on MLI underscores our commitment to providing retirees with financial security,” said Michael Oler, head of Defined Contribution Lifetime Income at Pacific Life. “MLI represents an innovative advancement in retirement planning. By pairing MLI’s robust approach to asset management with the security of a QLAC, we are creating a simple yet dynamic approach to helping participants retire more confidently. This holistic design is raising the bar for lifetime income solutions.”
T. Rowe Price’s latest 401(k) client data shows a growing trend of plan participants maintaining their assets in-plan after retirement, with 52% aged 60 and older staying in-plan for at least four years after separating from service. The latest white paper from the firm explores this trend and how a drawdown strategy paired with a deferred annuity may better match the needs of retirees who wish to maximize guaranteed income and maintain liquidity.
Negrón from T. Rowe Price adds, “Our goal is to consistently stay at the forefront of our clients’ needs. We aim to simplify the transition into retirement and to offer solutions that can give retirees the financial confidence and peace-of-mind in this new phase of life.”
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.
