401(k) Specialist Issue 2 - 2024 - 42

401(k) PRODUCT WATCH
TIAA, Nuveen Hit $35B with Lifetime Income
Solutions
ASSETS FOR TIAA AND NUVEEN'S lifetime income target-date solutions
have reached $35 billion.
The suite of lifetime income-embedded target-date offerings include
the TIAA RetirePlus solution, the TIAA Secure Income Account (SIA), and
the new Nuveen Lifecycle Income CIT series (NLI).
The TIAA RetirePlus platform is a qualified default investment alternative
(QDIA) for the 403(b) and nonprofit market, while the TIAA Secure
Income Amount works as a fixed annuity like its traditional counterpart
but is specifically designed to be used as an allocation within managed
accounts or custom target-date portfolio strategies. This account is
also embedded within the Nuveen Lifecycle Income CIT series, a CIT
target-date solution that allows participants to convert a portion of their
holdings into guaranteed income at retirement.
Nuveen began offering its NLI solution in August 2024, and in March
2024, it was activated for 19 defined contribution (DC) plan sponsors who
chose to map investments from prior default solutions, the organization
added in a statement.
" We partner with many of the nation's top retirement plan advisors
and consultants who see the need for lifetime income in 401(k) plans, "
said Brendan McCarthy, head of Nuveen Retirement Investing. " They recognize
NLI as an easy solution for employers to provide their employees
with the option of a guaranteed paycheck for life through the familiar
structure of a target date fund. "
As of 2022, TIAA has paid over $5.6 billion in lifetime income to retired
clients and has $1.28 trillion in assets under management (AUM) as of
December 31, 2023. Nuveen, the investment manager of TIAA, had $1.1
trillion in AUM as of June 30, 2023.
Nationwide Launches Default Guaranteed
Income Solution
NATIONWIDE will now allow plan sponsors to automatically default
participants into a protected retirement solution through its Dynamic
Default feature.
Employers with defined contribution (DC) plans will be able to select
several default investment options based on a participant's age. Per
Nationwide, the Dynamic Default solution starts once a participant is
enrolled in the plan. If a participant does not select their own investment,
they will be added into an initial default fund and their assets will
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ISSUE 2 2024 | 401kSpecialist.com
remain there until action is taken. Participants will eventually move from
the initial default fund to a second default investment, like a protected
retirement solution, as they near retirement.
The new feature comes as Nationwide sees a surge of adoption
among in-plan protected retirement solutions. According to the firm, as
of the first quarter of 2024, 6,931 plans have offered in-plan protected retirement
solutions supported by Nationwide. This has amounted to $4.95
billion in assets under management (AUM) for 64,372 participants.
It's a sizable jump says the firm, from 1,042 plans, $1.14 billion in AUM
and 52,314 participants a year ago.
A Nationwide Retirement Institute survey last year reported that more
employees are showing interest in " pension-like " retirement plans. The
survey found that 73% of 401(k) participants ages 45 and over wish they
were offered a guaranteed income stream within their employer's plan.
" Employers are recognizing that their participants want and need help
translating their savings into retirement security, " added Eric Stevenson,
president of Nationwide Retirement Solutions. " The key is not just making
these solutions available but making them automatic for employees
who don't know where to start. "
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401(k) Specialist Issue 2 - 2024

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