Plan sponsors have wanted little to do with Guaranteed Lifetime Withdrawal Benefit products but the Institutional Retirement Income Council thinks much of the concern is overblown.
According to a 2012 Deloitte survey, only 4 percent that year included a GLWB as an option in their 401(k) menu, and only 19 percent considered doing so. Asked why, one-third of sponsors cited "concerns about potential liability of them as an investment product."
That's not good for providers of GLWB products, or arguably, the plan participants who looking for a guaranteed benefit over the course of their retirement, set at a sustainable withdrawal rate.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
