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

In-plan retirement income solutions are now on the priority list with at least eight new products, such as target payout funds and in-plan annuities, having been launched by major asset managers and insurers since 2020.

By Kristen Beckman | October 24, 2022 at 11:02 AM
hand holding red umbrella over cartoon drawings of workers (Photo: Feodora/stock.adobe.com)

Interest in retirement income product development that would provide a guaranteed, steady income stream in retirement has recently resurfaced as a priority among asset managers and insurers. It’s been driven in part by legislation and in part by a growing desire among plan sponsors to retain participants in defined contribution plans after they retire.

Retirement income products are not new. The first in-plan solutions hit the market as far back as 2004, when MetLife launched an in-plan deferred fixed annuity where each contribution purchased a small piece of future guaranteed income. But cost and complexity were prohibitive and plan sponsors worried about liability related to offering such products.

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