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.
From Saving to Income
Jan 6, 2020
The Next Evolution of Defined Contribution Plans
In this white paper, we look at today’s defined contribution plans such as 401(k)s, and how they are likely to evolve.
Key Takeaways
- A major challenge for workers is generating a sustainable amount of lifetime income in retirement.
- The SECURE Act mandates that DC plans provide plan participants with projections of future retirement income.
- The next generation of DC plans has the potential to help workers meet their retirement income challenges.
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.
What Was Covered
- What the SECURE Act means for retirement plans, with a focus on lifetime income strategies
- Risks to focus on when solving for retirement readiness
- A look back at the first two evolutions of DC plans and the role of income in the evolution to version 3.0
- Steps sponsors can take to evolve their plans to be more supportive of lifetime income
Josh Cohen
Head of Institutional Defined Contribution
PGIM
Read Bio
Defined Contribution
Helping individuals through world’s leading plan sponsors to become retirement ready by meeting their liabilities and managing key risks.
Learn more
you may also like
The SECURE Act and its Impact on Lifetime Income
To help participants understand the impact of the SECURE Act, this article answers some common questions on this important topic.
Bridging the Gap to Enhance Retirement Security
Securing a comfortable retirement prior to the COVID-19 outbreak was difficult enough, and the pandemic only adds to the challenges.
PGIM does not establish or operate pension plans.