Survey finds that decumulation is not of interest for 27% of U.S. DC pension plan sponsors
June 13, 2023
A recent survey conducted by PGIM, the Asset Management arm of Prudential Financial, with assistance form Coalition Greenwich, found that approximately 59% of defined contribution pension plan sponsors in the U.S. are actively researching or evaluating decumulation solutions while another 7% are implementing or have implemented such solutions. The remainder have either decided against pursuing decumulation strategies or have expressed that this is not a topic of interest or need.
Among retirement income vehicles being considered, plan sponsors cited stable value (70%) and income funds in a target-date series (46%) as the most popular offerings. This was followed by long-duration fixed income and non-guaranteed retirement income options, managed accounts that support decumulation, managed payout funds, and annuities.
Despite being the least commonly offered option of these vehicles, annuities were the option most cited by plan sponsors regarding retirement income vehicles under consideration.
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