Background: In early 2024, the DCIIA RRC conducted two online surveys to better understand the retirement income and distribution capabilities offered by major recordkeepers. Eighteen recordkeepers were surveyed, with a range of 210,000 to 3 million participants (average 6.8 million) and $1.2 billion to $300 billion AUM (average $19 billion AUM).

The goal of these surveys is to provide a clearer, practical perspective on how to support robust retirement income solutions that aid industry practitioners in making well informed decisions. This inaugural survey will be used as a foundation for ongoing benchmarking to track changes in solution offerings, fee bundling, and more. Please note, in this study, retirement income includes both guaranteed and non-guaranteed solutions. This week, we will highlight three main findings of the surveys.

Findings: These surveys revealed three main findings related to plan sponsor demand, technology integration, and the participant experience.

Plan sponsor demand is the primary driver of retirement income solution adoption, with 86% of recordkeepers indicating that their strategic planning for new solution development is primarily driven by this demand. However, plan sponsors often will consider new solutions in reaction to money leaving the plan through rollovers or withdrawals, further contributing to this reactionary cycle. More than 55% of recordkeepers reported that they are waiting to see how the various retirement income solutions evolve and assessing new technology requirements needed to support solutions.

Technology integration will be critical in enabling new solutions to scale; providers of these solutions will likely play a pivotal role in shaping the future of retirement income strategies. These surveys found 53% of recordkeepers are leveraging external providers, 47% are using strategic partners, and 39% are using both.

The participant experience is a key factor influencing the development of income solutions, with respondents unanimously reporting that they aim for a streamlined, well– communicated, and simplified experience for participants to act (final income activation decision), as visualized below.

Source: RRC Retirement Income Solutions: Recordkeeper Study (2024)

Bottom line: The surveys reveal three key findings in the evolution of retirement income solutions. First, plan sponsor demand is the primary catalyst for adopting new solutions; 86% of recordkeepers indicate that their strategic planning is largely driven by this demand, often reacting to rollovers or withdrawals. Second, technology integration is essential for scaling new solutions. Lastly, the participant experience is important. Together, these factors will shape the future of retirement income strategies and

highlight the importance of a proactive and integrated approach to solution development.