Jumpstart the retirement income conversation

Our 2022 retirement income study focused on plan sponsor and participant preferences for turning defined contribution (DC) savings into retirement income. We teamed with leading research firm Greenwald Research on an extensive study involving connecting with 100 plan sponsors and consultants and more than 1,000 participants (all working for large US organizations with at least 5,000 employees) through online surveys, in-depth interviews, and virtual focus groups­.

Effective communication is a two-way process. Three-quarters of plan participants wanted their plan sponsors to start the retirement income conversation – specifically how to turn their DC plan savings into an income stream in retirement – with them earlier (at hire or when they join the plan) and continue the dialogue more frequently (annually at open enrollment).

Sponsors said they provided specific income-generating communications, but the data shows a disconnect between them and participants.

Regardless of age or income level, the top three retirement income planning topics participants wanted sponsors to provide communications on were determining how much money was safe to withdraw on a regular basis, estimating how much income their savings would create, and applying strategies for turning their DC plan savings into income using retirement income solutions available through their plan.

Participants also wanted an online comparison tool to help them understand the differences between the retirement income solutions available in their plan (65%), offered by just half of plan sponsors.

Sponsors can help participants turn their retirement plan balance into an income stream by reviewing their campaigns’ messaging to ensure the focus is on income and other relevant topics and highlighting the retirement income planning tools and calculators available to participants.