In this piece, Yanela Frias (President, Prudential Retirement) and Josh Cohen (PGIM Defined Contribution) explore what may be the most impactful development from the SECURE Act on defined contribution (DC) plans - the requirement that each participant receive an annual lifetime income disclosure. When the new income disclosures are introduced in 2021, they will force plan participants to consider their DC wealth in terms of retirement income and help:
- Encourage plan sponsors to evolve their DC plans to better assist participants in generating secure income in retirement.
- Prompt many participants to take action to ensure their future savings can generate the income they desire in retirement.
- Pave the way for DC plans to be tailored to the individual participant’s situation.
PGIM does not establish or operate pension plans.
