According to a recent study by TIAA, less than half of US workers have enough savings to cover six months of expenses, and about 60% say they are stressed about their finances. Further, more than half of respondents in the TIAA study believe companies have a responsibility to help employees maintain financial wellness as they continue to face financial hardships in the wake of the pandemic. Another recent study by Franklin Templeton revealed that three out of four workers want their workplace to provide more resources to help them with not only retirement savings but their overall financial well-being.

Against a volatile market environment, the decline in the availability of Defined Benefit Plans, less inflation-adjusted Social Security purchasing power, longer lifespans and these increased expectations from employees, the pressure is being felt from all angles. Employers need to provide more support and solutions, and government plays a critical part in setting parameters to help provide safe and secure retirement opportunities.

Legislation moves to the forefront to overcome industry challenges

As plan sponsors seek solutions for guaranteed income in Defined Contribution (DC) plans to improve retirement outcomes, Congress and regulators have been listening. 2019's SECURE Act 1.0 reduced the fiduciary risk associated with the use of lifetime income products, annuities, in a DC plan through stronger Safe Harbor provisions.