Guaranteed lifetime income in retirement plans is a hot topic these days, with study after study revealing that Americans want to know more about it and view these products as a good fit to help them reach their financial objectives.
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While 401(k) plan sponsors are showing increasing interest in adding guaranteed income products to their benefit programs, there’s still a lot of confusion surrounding what they are and how they work among retirement plan advisors and plan sponsors alike.
To help us sort it all out and understand what’s happening in this growing market, we are joined by Michael De Feo, Head of Defined Contribution Distribution at Minneapolis-based Allianz Life Insurance Company of North America, which has recently expanded into the defined contribution market as more Americans say they want guaranteed income options in their employer-sponsored plan.
De Feo shares his insights about how the SECURE Act and SECURE 2.0 has spurred innovation in guaranteed lifetime income product design, the barriers to widespread adoption these products still face, and a shift toward more personalization through managed accounts and hybrid plan design.
1 Only 30% of Households overall have access to a DB plan. Institutional retirement reference guide, LIMRA, 2022.
2 88% of DCIO asset managers relay that conversations with plan sponsors, advisors, and consultants related to in-plan retirement income have increased in the past 12 months. U.S. Defined Contribution Distribution 2022, Cerulli & Associates, 2022.
This content is for general informational purposes only. It is not intended to provide fiduciary, tax, or legal advice and cannot be used to avoid tax penalties; nor is it intended to market, promote, or recommend any tax plan or arrangement.
Allianz Life Insurance Company of North America, its affiliates, and their employees and representatives do not give legal or tax advice or advice related to Medicare or Social Security benefits. You are encouraged to consult with your own legal, tax, and financial professionals for specific advice or product recommendations, or to go to your local Social Security Administration office regarding your particular situation. Allianz Life Insurance Company of North America does not offer financial planning services.
Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.
• Not FDIC insured • May lose value • No bank or credit union guarantee • Not a deposit • Not insured by any federal government agency or NCUA/NCUSIF
Products are issued by Allianz Life Insurance Company of North America, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. (C64712-MVA)
Product and feature availability may vary by state and broker/dealer.
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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.
