Evaluating In-Plan Retirement Income Strategies
November 17, 2025
Plan sponsors should carefully consider their current retirement benefits offering and the characteristics of their plan participants when evaluating both guaranteed products and non-guaranteed investment strategies as a potential means for creating income in retirement.
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Due to the diverse needs of retirees and varying access to existing retirement benefits, there is no definitive answer for providing in-plan retirement income. In most cases, offering several income solutions—on the core menu as well as through asset allocation options—may be the better approach.
This insightful guide, Evaluating In-Plan Retirement Income Strategies: How DC Plan Sponsors Use Participant Demographics, DB Plan Status, and Guaranteed Income Tradeoffs to Guide Decisions, produced in partnership with PIMCO, highlights key considerations for plan sponsors and underscores that a single approach within defined contribution (DC) plans may not adequately address the unique circumstances of each retiree.
Key Findings
Helping Participants Generate Retirement Income Is a Priority for DC Plan Sponsors
More plan sponsors are working to ensure their participants have access to a diverse range of investments and products that can generate income in retirement. When asked to identify the top-five investment menu priorities for plan sponsors, DC consultants highlighted a growing focus on retirement income, increasing personalization, and the adoption of collective investment trusts (CITs).
Flexibility and Personalization Are Top of Mind for Plan Participants
A retirement income plan designed around an individual’s circumstances and lifestyle expectations ranks among the top priorities for participants. Factors associated with flexibility are also important, including the ability to withdraw money when they want, change investment options, and retain the possibility of assets growing once they have started withdrawals.
Plan Sponsors Prefer Opt-in Solutions Offering Fee Transparency, Liquidity, and Immediate Income
When considering a guaranteed income product, plan sponsors need to evaluate a range of tradeoffs associated with different solutions. When asked what the majority of their plan sponsor clients prefer when considering such tradeoffs, DC consultants highlight opt-in guaranteed income products that provide a degree of flexibility, including the ability to access some money (i.e., liquidity) if the participant needs it.
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