(Photo: Shutterstock)

The combination of historically high inflation and fluctuating interest rates threatens to erode the income-generating strategies for retirees that have prevailed for the last two decades. But for employee benefits plan sponsors that manage direct contribution plans for members, new strategies are emerging that address and adapt to the changing economic landscape.

A report by the Defined Contribution Institutional Investment Association (DCIIA) discusses the history of defined contribution plans, focusing on income-generating, rather than asset-building, strategies. During the recent and prolonged era of low interest rates and predictable low inflation rates, several strategies emerged that plan sponsors and members favored: fixed income annuities, bond laddering, and systematic withdrawals. Now, the white paper authors suggest, plan sponsors may want to consider another option trio that are more suited to the current economic/investment environment.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2023 ALM Global, LLC. All Rights Reserved.