DC Sponsors Can Help Turn the Retirement Puzzle into a Plan

Defined contribution plans have made retirement saving more portable, but they also shifted more risk and decision-making onto participants. That has created a growing need for solutions that can turn accumulated savings into dependable income in retirement.

Plan sponsors have already improved outcomes through auto-enrollment, auto-escalation, target-date funds, and financial wellness tools. The next opportunity is lifetime income solutions, which may help address longevity risk and give retirees more confidence to spend without fear of running out of money.

Investor interest appears strong, with most participants saying they would likely use a guaranteed income option if offered in-plan. For advisors and sponsors, the key challenge is balancing flexibility, regulatory clarity, and plan design while meeting the demand for greater retirement certainty.