401(k) Specialist Issue 1 - 2023 - 3

EDITOR'S LETTER
A Wave of Guaranteed
Income Solutions
THERE'S NOT A DOUBT in my mind that a wave of momentum truly is building for
in-plan guaranteed lifetime income solutions-and that this may be the year that
wave may finally reach the shores of 401(k) plans with meaningful impact.
Retirement income is an opportunity for advisors to reinvent themselves by becoming
well educated on the topic and using that newfound expertise to help plan
sponsors select and implement guaranteed lifetime income products for participants
who clearly want them.
Study after study shows that the majority of 401(k) plan participants (generally
around 70%) are scared of running out of money in retirement, and they want
access to guaranteed lifetime income products to quell this fear.
In Greenwald Research's recently released 2022 In-Plan Insights study, 80% of
plan participants said they believe employers should offer in-plan investment options
that provide income in retirement and that there should be multiple options.
A 2022 Allianz Life study found 80% of respondents said they would be interested
in a product that can serve as a supplemental source of guaranteed income along
with Social Security. A majority of people with retirement plans through their employer
(60%) said they would consider adding an annuity to their employer-sponsored
plan if it was available.
If given a choice, 90% of 401(k) participants in Invesco's 2022 " Show Me the Income "
defined contribution research said they would allocate their DC savings into
more than one retirement income option. Overall, 94% said they want a guaranteed
lifetime income solution that provides stable, predictable income where they won't
run out of money.
As Invesco's Greg Jenkins said, " Nearly 9 in 10 employees would be more likely to
stay in their plan if it were able to generate a regular income stream in retirement-
yet almost one-third of participants were unaware that staying in the plan after
retirement was even possible-highlighting the need for improved communication. "
The demand is clearly there as participants approaching retirement in particular
are figuring out they need help turning their retirement nest eggs into steady paychecks.
Now we need more education and better communication to help this wave
reach participants.
401(k) Specialist Editor-in-Chief Brian Anderson
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ISSUE 1 2023 | 401kSpecialist.com
3
Issue 4, 2021 |
401kSpecialist.com
CAPITALIZING ON
CONSOLIDATION
Wise Rhino's Dick Darian
on what's fueling a red-hot
401(k) M&A market
Issue 2, 2022
|
401kSpecialist.com
CHANGING
THE
'It' Advisor Tyrone Ross Jr.
on key industry issues and
his next endeavors
OF
401(k)

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401(k) Specialist Issue 1 - 2023

Table of Contents for the Digital Edition of 401(k) Specialist Issue 1 - 2023