The primary benefit of a workplace retirement plan is to provide employees a path to a secure financial future, with enough money saved for a dignified retirement. And the ultimate purpose of retirement plan design is to give participants confidence in their ability to achieve their retirement goals.
Given the volatility in the economy and financial markets, a protected retirement income solution offers employees the financial security they need to feel confident in their plans for retirement.
It’s not surprising to see that many plan participants wish their retirement plan operated more like a pension, according to our survey. This desire is particularly strong among participants who are getting closer to retirement: 73% of participants age 45 or older wish their 401(k) plan offered a pension-like income stream.
For those of us in the retirement planning industry — plan sponsors and plan providers such as Nationwide — we've made it simple for participants to enroll, save and invest for retirement. These innovations have helped increase plan participation and retirement preparation. We can play a critical role in helping their employees retire when they want by offering protected retirement income solutions as part of a world-class benefits package.
Now it’s time to take the next step: helping workers achieve financial security after they retire. Just as defined contribution plans helped employees accumulate savings for the long term, we need to help participants create income from their retirement savings so they can retire with confidence, knowing they won’t outlive their income. In-plan protected income solutions can go a long way toward making this happen. Review 2 ways you can help participants feel more confident as they prepare for retirement with Nationwide.