Retirement income: A modern approach driven by advice

Retirement income: A modern approach driven by advice


With a seemingly endless number of ways people may envision and fund their retirements, how can we expect there to be a one-size-fits-all retirement income solution? The likely answer is there isn’t one.

Retirement income solutions need to be customized to address the myriad of possible retirement scenarios, and to accomplish that we believe they need to include three core pillars — personalized, holistic, and advised.

The demand or need for retirement income solutions isn’t new. However, the landscape is changing markedly and may even be at a tipping point, with employer and employee adoption of retirement income options poised for growth. The key is to make sure each employee receives the necessary advice and comprehensive financial assessment to pave the way for a customized solution.

Participants need and want help

The impact of millions of baby boomers entering retirement annually, retirements possibly lasting multiple decades, and declining pension coverage are real. These trends aren’t new, but that doesn’t diminish the effect they’ll have on Americans’ retirements. Many Americans aren’t sure how to create a monthly income in retirement, and 70% of employees fear running out of money in retirement.1

Employers are taking note of employee retirement income concerns

Employers want to help their employees save and prepare for retirement, but extending their offering to include lifetime income options has proven challenging. However, the good news is that a change in sentiment and an evolving regulatory framework are eliminating some long-standing obstacles.

Asset retention: A growing percentage of plan sponsors are seeking to retain the assets of both retirees and terminated participants. And along with the desire to retain those assets, six in 10 plan sponsors will likely focus more on helping participants convert their plan account balances into income.2

Regulatory support: Legislation, more specifically the SECURE Act of 2019, is chipping away at fiduciary concerns by creating a safe harbor provision for retirement plans offering guaranteed income options.

What’s the answer?

A convergence of factors appears to be aligning and opening the door to a new era of retirement income approaches and solutions. The demand is there, employer barriers are coming down, and there’s a growing understanding that people need help creating a sustainable retirement income. But complexity remains a challenge when trying to generate lifetime income. That’s why we believe retirement income solutions that embed three core pillars — personalization, a holistic view, and advice — are critical to changing this dynamic and providing retirees with a more secure retirement income.

Personalization: A one-size-fits-all approach cannot come close to meeting the diverse needs of retiring Americans. The key is to tailor retirement income solutions based on a detailed picture of what a retiree needs and wants.

Holistic approach: Understanding an individual’s full financial picture is critical to determining how much retirement income they may need. That means evaluating all household assets and liabilities — including those held by a spouse or partner.

Advice: Advice from a financial professional can be especially important in helping employees figure out if they need guaranteed income, how much they may need, what products to invest in, and which account types (pre- or post-tax) to withdraw money from to maximize income and minimize taxes — all complex tasks.

We believe professional advisory services — delivered through one-on-one personalized attention — can help put the retirement income puzzle together by developing, implementing, and tracking a plan that’s tailored for each individual.

The time is now

Retirement plan participants know full well that life-altering market or other shocks are a possibility. They need comprehensive retirement-income solutions that can address these many risks, speak to their unique preferences and situations, and then advise on possible paths forward.

When evaluating retirement income options, carefully consider if they include the three core pillars that can provide a comprehensive solution: personalized, holistic, and advised.

Download the white paper to learn more about how personalized, holistic, and advised solutions are critical to generating sustainable retirement income.



1 Invesco participant survey, “2022 Defined Contribution Research Study,” October 2021.

2 PLANSPONSOR, “As More Retirees Remain in Plans, Retirement Income Solutions Follow,” April 2021.


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