2023 Focus Series: The Annuity 401(k) Opportunity: A Door Opens Wider


Price : $1,500.00



Annuity insurers have been competing in the $6 trillion 401(k) market for several decades. However, that competition was limited to providing recordkeeping services or investment options. Plan sponsor concerns when selecting an annuity kept 401(k)s from widely including in-plan annuity options. The passage of the SECURE Acts in 2020 and 2022 reduced those concerns and increased the 401(k) opportunity for annuity insurers to capture significant assets. 



Table of Contents:


Executive Summary


An Opportunity in Two Acts



  • A Secure Overview

  • A Secure Boost to QLAC Sales


It's All About the Assets


Expanding the Insurer 401(k) Role



  • The 401(k) Fee Landscape

  • Recordkeeping Under Pressure and Consolidating

  • Investment Management Under Pressure


In-Plan Annuities Transform 401(k)s



  • The Member Investment Challenges

  • Investment Risk Is Hard, Is Longevity Risk Harder?

  • Simplifying Investing, Eliminating Longevity Risk


A Cross-Generational 401(k) Opportunity



  • The Baby Boomer Silver Tsunami

  • Younger Generations Represent Significant Growth

  • Building the Cross-Generational Opportunity

  • Looking Ahead


Introduction

This Focus Report reviews the wider 401(k) opportunity now available to annuity insurers. It identifies what is driving the annuity industry’s interest in the 401(k) market. It examines how in-plan annuities help solve plan members’ key retirement challenges. Finally, it looks at the multi-generational nature of the wider 401(k) opportunity. Future reports will look more closely at product development and potential constraints facing the annuity industry as it goes after the 401(k) opportunity