In 2024, the rapid development essential for rolling out and embracing retirement income solutions raced ahead. The popularity of defined contribution (DC) retirement income has been steadily climbing, evident in the record-breaking annuity sales we’ve seen for three consecutive years, as reported by LIMRA, the Life Insurance Marketing and Research Association. This trend underscores a clear demand: DC plan participants are keen on retirement income, but they’re often pushed to look for these solutions outside of their retirement plans. Looking ahead to 2025, we anticipate more recordkeepers launching their programs, broadening access to comprehensive retirement income solutions for their plan participants.
The past year was bustling with advancements in retirement income technology and the user experience, especially at SS&C. Their Retirement Income Clearing & Calculation Platform (RICC) was honored with a NICSA Nova award for industry innovation.
Empower’s retirement program has now been integrated into SS&C’s RICC platform, offering technology connections and services for various retirement income solutions. Meanwhile, Principal’s platform is in the implementation phase, aiming for a launch on RICC in early 2026. Once both Empower and Principal go live, SS&C’s RICC platform will have six recordkeepers on board.
Furthermore, SS&C’s Retirement Income Solutions team is thrilled to announce the upcoming inclusion of cutting-edge retirement income solutions from ARS. The first two products joining SS&C’s platform are the State Street GTC Retirement Income Builder Funds and the Principal LifeTime Income Builder Index Target Date Series.
Exciting news comes with the launch of Allianz’s Lifetime Income+ Retirement Income Solution on the SS&C RICC platform, now live with a freshly established recordkeeper partnership as well.
Looking forward to 2025, we expect a surge in the widespread availability of retirement income solutions across multiple recordkeepers. Gaining distribution scale has been a long-standing goal in the DC landscape since the inception of retirement income solutions. Additional recordkeepers are likely to develop varied retirement programs, fulfilling the needs of their clients and participants. Current adopters of these solutions should witness increased engagement as they incorporate Dynamic Qualified Default Investment Alternatives (QDIAs) and manage account programs.
Reflecting on last year, implementing retirement income as default solutions has rapidly become a leading industry practice. At an October meeting with the DOL’s ERISA Advisory Council, SS&C’s Jacqueline Rynn and her colleagues emphasized the importance of lifetime income and QDIAs. Their input resonated, prompting the ERISA council to advocate for more guidance from the DOL on selecting, monitoring, and educating participants about these solutions. Regulatory direction to foster DC retirement income solutions remains a focus area.
For those curious about the global retirement market, SS&C, alongside Deloitte, has unveiled its Global Retirement Outlook. This whitepaper delves deep into the US DC market and highlights trends in Australia and the UK. Key insights were shared in a recent webinar titled “The Global Retirement Industry: Key Trends, Insights, and Strategies for Staying Ahead.” To discover more, watch the on-demand session. Sharing knowledge and strategies can bolster global retirement systems and enhance participant readiness for retirement.
Allianz Lifetime Income+® Annuity, a fixed index annuity issued by Allianz Life Insurance Company of North America, offers long-term retirement income solutions, securing principal and credited interest while providing a death benefit for beneficiaries. However, bear in mind the product availability varies by state and is not applicable in New York.
– Note that these annuities are not FDIC insured and are not bank or credit union backed.
– They’re not deposits or insured by any federal agencies including NCUA/NCUSIF.
Keep in mind, the promises are only as solid as the financial strength and claims-paying ability of the issuing company. It’s also important to note that Allianz Life Insurance Company of North America and SS&C Technologies operate independently.
