Guaranteed Income in DC Plans: Evaluating Target-Date Funds with Built-In Annuities
Why are target-date funds with annuities gaining ground in the US Retirement market?
The US Department of Labor's proposed fiduciary rule clarifies how plan sponsors should evaluate lifetime income products in defined contribution plans, reducing the friction that has long been a barrier to adoption. This regulatory clarity, combined with Vanguard’s entry into the space, signals that in-plan annuities have cleared the credibility bar. Vanguard's decision to build guaranteed income into its newest target-date series tells the market these products are viable even for cost-conscious managers.
Together, these developments will likely accelerate guaranteed income adoption across 401(k) and 403(b) plans. How can we select the right structure for a plan and its participants, and where does guaranteed income belong?
Download the report now to explore retirement strategies beyond traditional target-date funds, insights into the latest fiduciary framework, and more.
