Industry News in Retirement and Financial Services
BlackRock, a leading investment management firm, has introduced a new retirement income solution called LifePath Paycheck. This innovative product is designed to provide participants with a guaranteed income stream starting at age 55, similar to an annuity. What sets LifePath Paycheck apart is its focus on making the annuitization process more accessible, liquid, and cost-effective for individuals.
According to Anne Ackerley, head of the retirement group at BlackRock, the company recognized the need for guaranteed income in retirement but wanted to address the challenges associated with traditional annuities. With LifePath Paycheck, participants can benefit from a target-date fund-like return while also having the option to purchase a lifetime income stream.
Currently, 14 plan sponsors have chosen to implement LifePath Paycheck as the default investment option in their retirement plans, representing over $27 billion in target-date assets and more than 500,000 participants. The solution is set to be implemented in these plans in the coming months, with companies notifying participants of the change as required.
In a similar move, Nationwide has launched a Dynamic Default feature that allows plan sponsors to automatically default participants into a protected retirement solution with an annuity. This feature aims to simplify the process for employers and help participants secure their retirement income.
Additionally, CAIS, an alternative investment platform, has partnered with CAPTRUST to streamline alternative investments for independent financial advisers. This collaboration will provide advisers with a unified platform to manage their alternative investment products and processes more efficiently.
Lastly, Fiduciary Exchange LLC (FIDX) has introduced FIDX Desk, an outsourced insurance desk that enables registered investment advisers to integrate annuity products into their offerings seamlessly. This initiative aims to help RIAs overcome obstacles in presenting annuity solutions to clients and managing existing annuity investments.
Overall, these developments in the financial industry highlight the growing focus on retirement income solutions and alternative investments to meet the evolving needs of investors.
