NEPC’s Bill Ryan was quoted in a recent PlanSponsor article to discuss retirement plans and what can be done to support the goals of retirees and plan sponsors alike. View the article on PlanSponsor’s site here.
Workplace retirement plans may need to change their name—these days, more plan sponsors are looking for ways to serve their former employees even after they’ve quit working.
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“Bill Ryan, partner and head of defined contribution solutions at NEPC, says most plans already have the basic tools—the ability to make systematic withdrawals and investment options that can support near-term goals—necessary to serve their retirees.
“The retirement tier is an overwhelming topic that doesn’t have to be overwhelming,” Ryan explains. “We are closer to the answer than further away. Most plans have the building blocks for a retirement income tier; they just have to build on them.””
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“[Scott] Mayland says plan sponsors considering adding annuities must evaluate them with a fiduciary’s eye, making sure they understand all the features and the costs. Ryan says a simple way for plans to get started with annuities might be through a window that allows participants to select from a range of providers. For plan sponsors looking to add an annuity to the investment menu, a straightforward, plain-vanilla fixed annuity is likely the best approach for the widest demographic, he adds.”
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“The expansion of in-plan Roth accounts that will occur as additional SECURE 2.0 provisions go into place may further strengthen the case for a retirement tier.
“There is going to be an unintentional benefit from that long-term, because this group won’t need to take RMDs, and they may leave their money in longer,” Ryan says.”
Read the full article on Plan Sponsor’s website here.