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Today's Guarantees for Tomorrow's RetireesFor retirees, "risk" may be a four-letter word. But employers who sponsor retirement plans have an opportunity to help employees plan for you know what before their paychecks stop and retirement starts. A new white paper, The Retirement Income Dilemma: An In-Plan Solution, walks through how in-plan deferred income annuities offered within a retirement plan help future retirees manage different risks such as outliving their savings, downturns in the market and changing interest rates. Principal Financial Group® commissioned Bruce Ashton of Drinker Biddle & Reath LLP to write the paper. "Today's retirees will live longer and face different financial issues. They may be entering retirement with mortgages, credit card balances and even student loans," said Jerry Patterson, senior vice president of retirement and income solutions at Principal®. "The prospect of living longer, combined with higher fixed expenses, makes it even more important to strike a balance between investments that grow and investments that are guaranteed." The paper includes sections on:
The paper is available in condensed and full versions. It also includes checklists for plan sponsors to use in researching different in-plan products and providers.
Principal's income outcome When they near retirement, participants select the age they want to start receiving payments and what form those payments will take. "We have been in the market for several months now and interest among advisors and plan sponsors has been very high. They love the simplicity of the design and see it as a powerful way for employees to begin to set the stage for life without a paycheck," Patterson said. "By making guaranteed income easier and more convenient to access through a retirement plan, millions of Americans can make progress today toward a more secure tomorrow." For more research, analysis and insights from Principal, visit the Principal Knowledge Center and connect with us on Twitter. About Principal® Principal helps people and companies around the world build, protect and advance their financial well-being through retirement, insurance and asset management solutions that fit their lives. Our employees are passionate about helping clients of all income and portfolio sizes achieve their goals - offering innovative ideas, investment expertise and real-life solutions to make financial progress possible. To find out more, visit us at principal.com. Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group. The ability of Principal Life Insurance Company to pay the guarantee is based on the claims-paying ability of the general account and is subject to the terms of the contract. Principal Pension BuilderSM is a deferred income annuity rider available through certain group annuity contracts with Principal Life Insurance Company, a member of the Principal Financial Group®, Des Moines, Iowa 50392. Principal Pension Builder may not be available in all states. Principal Pension Builder provides for the purchase of deferred income annuities that provide guaranteed income in retirement. Income may change due to elections by the plan fiduciary or participant, such as changing the income start date or annuity form or surrendering guaranteed income. Contributions and transfers used to purchase guaranteed income in Principal Pension Builder will not be subject to market gains or losses. In exchange, the participant is purchasing a guaranteed future income stream. View source version on businesswire.com: http://www.businesswire.com/news/home/20160526005872/en/ |
