While there has been a push to allow 401(k) plan sponsors to offer retirement income solutions for participants, most plan sponsors aren’t interested in offering it.
PGIM conducted a study that found that while seven out of 10 plan sponsors have taken steps regarding retirement income, only 15% are currently evaluating products or implementing a solution. Also, 27% of these plan sponsors said they are not currently interested in offering a retirement income solution.
The study showed that the most common retirement income solutions plan sponsors are considering are annuities. However, only 14% of plan sponsors agreed there is significant participant interest in adding in-plan annuities.