Finding Common Ground in SECURE Act Provisions
With 29 different provisions, the recently passed SECURE Act has been widely praised for its various enhancements to the U.S. retirement system.
In this white paper, we look at today’s defined contribution plans such as 401(k)s, and how they are likely to evolve.
One of today’s greatest financial wellness challenges for workers is generating an adequate and sustainable amount of lifetime income in retirement. Defined contribution plans primarily focus on helping participants accumulate retirement savings, not converting those savings into a steady stream of lifetime income. This can leave workers vulnerable to a wide array of risks once managed by defined benefit plans including longevity risk, market risk, inflation risk, interest rate risk, and sequence of returns risk.
Prudential’s thought leaders hosted a webinar on the evolution of defined contribution (DC) plans post-SECURE Act, including lifetime income strategies addressed in this white paper. Click the video above to watch the replay.
PGIM does not establish or operate pension plans.