Two-Thirds of Workers Say Guaranteed Income Benefit in Retirement Plan a “Wow Factor” When Considering a Job Offer
New research from Lincoln Financial Group shows more than half of workers would like to be automatically enrolled in an in-plan guaranteed income investment option
If employers want to “wow” current and prospective employees, they should offer a guaranteed income option within their retirement plan, according to new research from Lincoln Financial Group. Findings from a new consumer survey reveal that workers indicate a strong preference for employers that offer a guaranteed income option in their retirement plan, with nearly two in three saying they would see it as a “wow factor” when considering a job offer. And in their ideal world, 71% say all employers would offer an in-plan guaranteed income investment option.
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New @lincolnfingroup research shows employers can “wow” current and prospective employees by offering a guaranteed income option within their #retirementplan
From 2016-2019, the number of plans offering in-plan guaranteed income investment options declined1, despite many recordkeepers offering these solutions. Following the passage of the SECURE Act nearly 10 months ago, however, it is now easier for plan sponsors to offer a plan design that includes the option for participants to generate guaranteed retirement income.
Workers surveyed see great value in products that provide guaranteed income in retirement, with more than seven in 10 saying they would use it if offered, and the same number said these solutions would make it easier to budget their money in retirement and they would feel more confident in preparing for retirement. And as auto-enrollment has helped many Americans start on the path to saving for retirement, more than half of workers say they would prefer to be automatically enrolled in an in-plan guaranteed investment option.
“As an industry, we have an opportunity to meet the needs of today’s savers by working with plan sponsors and financial professionals to offer investment options for guaranteed lifetime income within retirement plans,” said Jamie Ohl, Executive Vice President, President, Retirement Plan Services, Head of Life & Annuity Operations, Lincoln Financial Group. “Consumers are clearly ready to transform their retirement plans to more than just accumulation vehicles, so we must focus on helping them translate their savings into a monthly check that will last through retirement — because in planning for retirement, the ultimate outcome is income.”
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