Insights | 10.21.20
Getting Income Projections Right
In recent conversations with PLANADVISER, some of the leading retirement plan recordkeepers offered insight about how they currently generate lifetime income disclosures. For the most part, what recordkeepers are doing today is far more individualized and sophisticated than the methodology that will apparently be mandated by the Department of Labor (DOL). This fact has raised concerns among many, but not all, retirement industry stakeholders. In simple terms, the DOL’s proposed approach will generate several different income projections based on a uniform set of assumptions that some worry may not be reliable for all participants in an increasingly diverse workforce. Pacific Life’s tool creates a two-minute personalized video that aims to illustrate the potential benefits of protected lifetime retirement income delivered through an annuity. The company says the tool also can encourage individuals to start the retirement income conversation with a financial professional. “There is an information gap,” says Christine Tucker, vice president of marketing for Pacific Life’s Retirement Solutions Division. “Many consumers don’t know what their savings mean when it comes to retirement income, nor do they know if or how an annuity can help them.”
Read the full article on PlanAdviser.com.