The SECURE Act reinvigorated interest in expanding the market for in-plan annuities. However, we need to make many more changes to really drive adoption. In part one of a two part series, Michelle Richter and Mark Chamberlain of the newly renamed firm, Annuity Research & Consulting, share their roadmap for future success.

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We create audio and video content for professionals who share a passion for advancing the retirement industry. Approximately 80% of our audience are top advisors or independent agents who help consumers plan for retirement. Approximately 10% work at carriers in product management, distribution, and compliance. Industry influencers account for approximately 10%. We want to help every independent agent be successful in explaining the benefits of annuities. And there are many. They can protect retirement nest eggs from market downturns. They can generate predictable income in retirement. They can even offer several benefits in case of serious illnesses. However, the products can be very complicated. And discussing tough topics about retirement lifestyle can be tricky. At the same time, we work in a highly regulated industry. We frequently sell our products to seniors. And the laws seem to change all the time. How do we effectively build our practice and remain compliant with all rules? This information is provided by Nassau for educational purposes only. It is not individualized to address any specific financial objective and is not intended as investment, legal or financial advice. Any links or references to third-party information or websites is for informational purposes only. Nassau has no control over such third-party information or websites, is not responsible for their availability or accuracy, and does not endorse and is not responsible or liable for any content, advertising, products, or other materials on or available from them. Your access to or use of such sites or resources is at your sole risk….(read more)

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In episode 172 of the Retire Happy podcast, Michelle Richter and Mark Chamberlain delve into the topic of in-plan annuities and how they can help individuals achieve financial stability in their retirement years. As experts in the financial industry, Richter and Chamberlain provide valuable insights into the benefits of in-plan annuities and the challenges that come with implementing them.

An annuity is a type of investment that provides a guaranteed income stream in exchange for a lump sum payment or a series of payments. In-plan annuities, also known as participant-directed annuities, are annuity options that are offered within employer-sponsored retirement plans like 401(k) plans. While traditional defined benefit plans have always offered annuities, in-plan annuities provide participants the ability to customize their retirement income based on their individual goals and preferences.

Richter and Chamberlain discuss the benefits of in-plan annuities, such as the ability to provide a steady stream of income for life, protect against market volatility, and provide a source of income in the event of an unexpected need. Additionally, in-plan annuities can help alleviate longevity risk, the risk of outliving one’s retirement savings, by providing a guaranteed income that lasts as long as the participant lives.

Despite these benefits, in-plan annuities are still relatively underutilized in retirement plans. One of the major challenges, according to Richter and Chamberlain, is a lack of education and awareness among plan sponsors and participants about the benefits of annuities. Richter notes that plan sponsors are often hesitant to offer in-plan annuities due to concerns over fiduciary responsibilities, complexity, and cost. However, she explains that many of these concerns can be addressed through proper due diligence, education, and communication.

Another challenge that Richter and Chamberlain discuss is the lack of standardization in the industry. Annuity products can vary widely in terms of fees, features, and benefits, which can make it difficult for participants to compare and select the right product. To address this issue, Richter and Chamberlain stress the importance of working with an experienced advisor who can help navigate the complex annuity landscape and select the right product based on the participant’s goals and preferences.

Overall, in-plan annuities can be an important tool in helping individuals achieve financial stability and security in retirement. While there are certainly challenges to implementing these products, Richter and Chamberlain offer valuable insights into how to overcome these challenges and successfully integrate in-plan annuities into retirement plans. As we continue to see significant changes in retirement planning and the financial industry as a whole, in-plan annuities are likely to become an increasingly important option for individuals looking to secure their financial futures.