New fintech solutions

At least two fintech firms are working on products that reduce the cost for recordkeepers to support in-plan products with technology that overcomes operational challenges:

Micruity is a fintech startup looking to act as a centralized clearinghouse for annuity trading and settlement data.
iJoin is focused on the participant experience with software that helps participants set goals around how much income they will need in retirement and to help them allocate to the most appropriate investments.

Renewed interest and momentum does not guarantee success, however. "History has shown that even well-conceived solutions can fail to find their way onto plan lineups and attract assets," said the paper. As such, the authors recommend four strategies to build and grow in-plan retirement income products:

Partner with recordkeepers. Because they are the conduit to the plan participant, broad-based recordkeeper implementation of in-plan retirement income products is critical to driving utilization.
Support the development of "middleware" providers. Making it easier for recordkeepers to get the data needed to offer in-plan income products, technology-based middleware providers can help overcome the portability challenge.
Integrate with advice products and services. Target date funds and managed accounts are now established as the standard for delivering in-plan advice to participants.
Manage product costs. Plan fiduciaries often weigh cost above all other factors in evaluating investments for the lineup.

Kristen Beckman is a freelance writer based in Colorado. She previously was a writer and editor for ALM's Retirement Advisor magazine and LifeHealthPro online channel.

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Guaranteed retirement income: Now advisors can come up with an "in-plan" plan

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