Defined contribution (DC) plans are both popular and predominant; however, when measured by the defined benefit (DB) yardstick of generating lifetime income, they haven’t yet proven to be successful. The sole focus of DC plans has historically been to accumulate assets during the working years, with little support provided to participants in retirement. A common analogy is the airplane pilot parachuting out of the plane just before reaching your destination, leaving you to maneuver the landing on your own. The “landing gears” of our DC system are solutions designed to help participants convert their accumulated retirement balances into lifetime income. This paper provides a review of product types available to do so.
Income is the outcome: A review of lifetime income solutions
Exploring solutions to help DC participants convert accumulated retirement balances into lifetime income.