Nationwide Financial President and COO John Carter and Nationwide Retirement Solutions President Eric Stevenson shared their views on how to revolutionize the retirement industry — including the important role of Protected Retirement solutions as an income stream in retirement — at the Milken Institute Global Conference 5 de mayo-8 in Beverly Hills, CA.
Most Americans are not saving enough over time to meet their need for income in retirement. Generating income in retirement has often been referred to as a three-legged stool made up of pensions (or defined benefit plans), Social Security benefits and defined contribution plans. But is the stool bearing weight? Relying on Social Security as a sole source of retirement income will leave many workers at or near the poverty level. Similarly, access to income from defined benefit pension plans might be on the decline as average employee tenure decreases or as employers are forced to reduce their pension benefits. We believe it’s time to rethink the traditional framework.
Carter joined industry leaders to discuss this new framework, including the need to even out the other leg of the stool — providing more income certainty within a defined contribution plan. Further contributing to the need includes an aging population in which more of America’s workers will turn 65 than ever before and younger generations who are facing significant obstacles to early saving. Working together to close the retirement income gap is more important now than ever. Watch the panel discussion with John Carter.
Leveraging Protected Retirement solutions, also known as in-plan guarantees, can help serve as an answer for an industry in need. Nationwide is a leader in the industry, bringing forward these solutions to plans and participants already today. Stevenson joined industry leaders and led a session discussing Protected Retirement in more detail. Stevenson encourages employers to take advantage of opportunities created by SECURE Act legislation to support a more secure retirement for American workers. He believes Protected Retirement solutions could help workers overcome challenges to retirement savings.
Offering Protected Retirement income solutions in-plan is the next generation of retirement planning and represents an opportunity for the financial services industry to redefine success as achieving a secure retirement in which savers aren’t worried about outliving their income.