Perspectives

The retirement landscape is shifting, as the workforce grows older and increasingly relies on its defined contribution plans for retirement security. NISA’s target date glidepath design seeks to manage risks that undermine the ultimate goal of retirement: sustainable and stable income. Our multi-asset and risk-controlled solutions can be employed in the design of your plan’s default option to help participants…

You may have missed that the Employee Benefit Research Institute (EBRI) released a study on retirement spending back in November.* The headline conclusion was that while spending in retirement tends to fall slightly over time on average, the spending patterns of individual retirees vary pretty widely. If markets don’t perform on average, and people don’t retire, spend, or live on…

We’ve witnessed a flurry of new guidance and regulations from both the Department of Treasury and Department of Labor related to retirement income. The growing retirement crisis has employees, employers and the government recognizing that this shared concern needs shared solutions. Washington has shown its focus on removing barriers and fostering adoption of retirement income solutions. As employers increasingly seek…

Combining Longevity Annuities and Bonds to Raise Retirement Income DC participants want the most for their money when choosing a retirement income strategy. While annuities can offer higher income, that value is partially reduced by expenses and the loss of control and liquidity. We quantify these drawbacks and find that the most efficient way to fund retirement spending may be…

How the New QLAC Rules Impact a Retirement Driven Investing Strategy DC plans can now offer deferred “longevity” annuities that provide income in the later years of retirement. This is good news for those participants who want the peace of mind that they won’t outlive their assets while retaining control over most of their portfolio. While the World Cup had…

The Retirement Driven Investing (RDI) Approach to Fixed Income in DC Plans Fixed income allocations in defined contribution plans, while perceived as low risk, may actually expose participants to substantial volatility in retirement income. To reduce this risk, sponsors can apply duration-matching techniques when designing target date funds or managed accounts. This offers participants stability in their retirement income expectations…