T. ROWE PRICE WHITE PAPER REVEALS HOW COMBINING AN ANNUITY WITH A DRAWDOWN STRATEGY CAN BALANCE RETIREMENT INCOME AND LIQUIDITY
T. Rowe Price has published a new white paper revealing how combining an annuity with a drawdown strategy can balance retirement income and liquidity. The paper suggests that this approach can provide a high level of retirement income while maintaining adequate liquidity for retirees.
Key insights include:
- A growing trend of defined contribution participants staying in-plan upon retirement
- More plan sponsors exploring in-plan retirement income solutions
- Pairing drawdown strategies with annuities may better match retirees' needs for income and fund access
- The importance of due diligence for plan sponsors in insurer selection and product evaluation
T. Rowe Price aims to empower plan sponsors and advisors with research and knowledge to make impactful decisions for retirement savers at every stage.
T. Rowe Price ha pubblicato un nuovo documento informativo che rivela come combinare un rendita con una strategia di prelievo possa bilanciare il reddito in pensione e la liquidità. Il documento suggerisce che questo approccio può fornire un alto livello di reddito pensionistico mantenendo una liquidità adeguata per i pensionati.
Le principali informazioni includono:
- Una crescente tendenza dei partecipanti ai piani di contribuzione definita a rimanere nel piano al momento della pensione
- Un maggior numero di sponsor di piani che esplorano soluzioni di reddito in pensione all'interno del piano
- Abbinare strategie di prelievo con rendite può meglio soddisfare le esigenze dei pensionati in termini di reddito e accesso ai fondi
- L'importanza della due diligence per gli sponsor di piani nella selezione degli assicuratori e nella valutazione dei prodotti
T. Rowe Price si propone di fornire a sponsor di piani e consulenti ricerche e conoscenze per prendere decisioni significative per i risparmiatori per la pensione in ogni fase.
T. Rowe Price ha publicado un nuevo documento técnico que revela cómo combinar una renta vitalicia con una estrategia de retiro puede equilibrar los ingresos de jubilación y la liquidez. El documento sugiere que este enfoque puede proporcionar un alto nivel de ingresos para la jubilación manteniendo una liquidez adecuada para los jubilados.
Los puntos clave incluyen:
- Una creciente tendencia de los participantes en planes de contribución definida a mantenerse en el plan al momento de la jubilación
- Más patrocinadores de planes explorando soluciones de ingresos para la jubilación dentro del plan
- Combinar estrategias de retiro con rentas vitalicias puede satisfacer mejor las necesidades de los jubilados en términos de ingresos y acceso a fondos
- La importancia de la debida diligencia para los patrocinadores de planes en la selección de aseguradoras y evaluación de productos
T. Rowe Price tiene como objetivo empoderar a patrocinadores de planes y asesores con investigación y conocimiento para tomar decisiones impactantes para los ahorradores para la jubilación en cada etapa.
T. 로우 프라이스는 새로운 백서를 발표하여 연금과 인출 전략의 결합이 어떻게 은퇴 소득과 유동성을 균형 있게 조정할 수 있는지를 밝혔습니다. 이 백서는 이 접근 방식이 높은 수준의 은퇴 소득을 제공하면서 은퇴자에게 적절한 유동성을 유지할 수 있다고 제안합니다.
주요 통찰력은 다음과 같습니다:
- 은퇴 시 점점 더 많은 확정 기여형 참여자들이 계획에 남아 있는 추세
- 더 많은 계획 후원자들이 계획 내 은퇴 소득 솔루션을 탐색하는 중
- 인출 전략과 연금을 짝지으면 은퇴자들의 소득 및 자금 접근 요구를 더 잘 충족할 수 있음
- 보험사 선정 및 상품 평가를 위한 계획 후원자의 실사 중요성
T. 로우 프라이스는 모든 단계의 은퇴 저축자를 위한 영향력 있는 결정을 내릴 수 있도록 계획 후원자 및 자문가에게 연구 및 지식을 제공하는 것을 목표로 합니다.
T. Rowe Price a publié un nouveau document révélant comment combiner une rente avec une stratégie de décaissement peut équilibrer le revenu de retraite et la liquidité. Le document suggère que cette approche peut fournir un haut niveau de revenu de retraite tout en maintenant une liquidité adéquate pour les retraités.
Les principales idées comprennent :
- Une tendance croissante des participants aux plans de contributions définies à rester dans le plan lors de la retraite
- De plus en plus de sponsors de plans explorent des solutions de revenu de retraite dans le plan
- Associer des stratégies de décaissement avec des rentes peut mieux répondre aux besoins des retraités en matière de revenu et d'accès aux fonds
- L'importance de la diligence raisonnable pour les sponsors de plans dans la sélection des assureurs et l'évaluation des produits
T. Rowe Price vise à habiliter les sponsors de plans et les conseillers avec des recherches et des connaissances pour prendre des décisions percutantes pour les épargnants en vue de la retraite à chaque étape.
T. Rowe Price hat ein neues Whitepaper veröffentlicht, das aufzeigt, wie die Kombination einer Rentenversicherung mit einer Entnahme-Strategie das Renteneinkommen und die Liquidität ausbalancieren kann. Das Dokument legt nahe, dass dieser Ansatz ein hohes Renteneinkommen bieten kann, während eine angemessene Liquidität für Rentner erhalten bleibt.
Wichtige Erkenntnisse umfassen:
- Einen wachsenden Trend, dass Teilnehmer an definierten Beitragsplänen bei der Pensionierung im Plan bleiben
- Mehr Plan-Sponsoren, die Lösungen für das Renteneinkommen im Plan erkunden
- Die Kombination von Entnahme-Strategien mit Rentenversicherungen kann besser auf die Bedürfnisse von Rentnern nach Einkommen und Fundzugang abgestimmt sein
- Die Bedeutung der sorgfältigen Prüfung für Plan-Sponsoren bei der Auswahl von Versicherern und der Bewertung von Produkten
T. Rowe Price möchte Plan-Sponsoren und Beratern durch Forschung und Wissen die Befugnis geben, entscheidende Entscheidungen für Rentensparer in jeder Phase zu treffen.
- T. Rowe Price's research supports innovative retirement income strategies
- Growing trend of in-plan retirement solutions, potentially increasing T. Rowe Price's market share
- Positioning T. Rowe Price as a thought leader in retirement planning
- None.
"There is a common misunderstanding that annuities are an all or nothing decision for retirees," said Berg Cui, Ph. D., senior quantitative investment analyst at T. Rowe Price and author of the paper. "We believe that pairing annuities with a drawdown strategy could create a more balanced retirement income experience that better matches a retiree's needs for both income and access to funds."
Key insights from the paper include:
- There is a growing trend of defined contribution (DC) participants staying in-plan upon retirement, and more plan sponsors are exploring in-plan retirement income solutions to support them. T. Rowe Price's 2024 DC Consultant Study found that the percent of plan sponsors that consultants categorized as currently offering or planning to add a retirement income solution more than doubled in recent years, from
8% in 2021 to18% in 2024. - Pairing a drawdown strategy with an annuity may be a better match for retirees who need to maximize income and maintain adequate liquidity. Providers have been known to pair endowment strategies, where income is sourced from portfolio returns and the principal is mostly preserved, with annuities. However, the paper argues that annuities are better matched with drawdown strategies, where income is sourced from both the portfolio returns and principal. This pairing can deliver a high level of income without significant loss of liquidity.
- Due diligence is key for plan sponsors during insurer selection and when evaluating the product to ensure that it is a good fit for the plan. Consultants and advisors can help plan sponsors choose the right mix of capabilities that work for their participant demographic.
"T. Rowe Price is committed to empowering plan sponsors and advisors with the research and knowledge required to make the best, most impactful decisions for retirement savers at every stage of the journey," said Sudipto Banerjee, Ph. D., director of retirement thought leadership at T. Rowe Price. "Ultimately, our goal is to ensure that every retiree can approach their future with financial confidence."
ABOUT T. ROWE PRICE
Founded in 1937, T. Rowe Price (NASDAQ – GS: TROW) helps individuals and institutions around the world achieve their long-term investment goals. As a large global asset management company known for investment excellence, retirement leadership, and independent proprietary research, the firm is built on a culture of integrity that puts client interests first. Clients rely on the award-winning firm for its retirement expertise and active management of equity, fixed income, alternatives, and multi-asset investment capabilities. T. Rowe Price serves millions of clients globally and manages US
1 Income guarantees are subject to the claims paying ability of the insurer. | |||||
IMPORTANT INFORMATION
Investment Risks: Investments are subject to risk including possible loss of principal. Those at or near retirement are subject to sequence of returns risk, where potential losses at this time could have a more significant impact on income for retirement from investments.
Annuities information and risks: Guarantees are subject to the claims paying ability of the insurer. Annuities may be subject to higher fees, including commissions upon purchase, surrender charges, administrative fees and other costs. Riders may be available to help customers customize their policy and provide additional benefits. Riders are optional and available at an additional cost. Contracts and other offering documents should be read carefully as they describe risk factors, terms of the contract, and fees and charges that may apply. An annuity is a long-term vehicles designed for retirement. An annuity isn't intended to replace emergency funds or to fund short-term savings goals. T. Rowe Price does not issue any annuity products.
This is not a recommendation or investment advice, and the material does not take into account individual investor circumstances including total assets, that should be considered prior to investing or purchasing annuities.
Source: 2024 Defined Contribution Consultant Study: This study included 48 questions and was conducted from January 12, 2024, through March 4, 2024. Responses are from 35 consulting and advisor firms with over 134,000 plan sponsor clients and more than
This material is provided for general and educational purposes only and is not intended to provide legal, tax, or investment advice. This material does not provide recommendations concerning investments, investment strategies, or account types; it is not individualized to the needs of any specific investor and not intended to suggest any particular investment action is appropriate for you.
The views contained herein are as of the date written and are subject to change without notice; these views may differ from those of other T. Rowe Price associates.
This information is not intended to reflect a current or past recommendation concerning investments, investment strategies, or account types, advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. The opinions and commentary provided do not take into account the investment objectives or financial situation of any particular investor or class of investor. Please consider your own circumstances before making an investment decision.
Information contained herein is based upon sources we consider to be reliable; we do not, however, guarantee its accuracy.
T. Rowe Price Investment Services, Inc., distributor, and T. Rowe Price Associates, Inc., investment adviser.
View original content:https://www.prnewswire.com/news-releases/t-rowe-price-white-paper-reveals-how-combining-an-annuity-with-a-drawdown-strategy-can-balance-retirement-income-and-liquidity-302265877.html
SOURCE T. Rowe Price Group
FAQ
What did T. Rowe Price's (TROW) white paper reveal about retirement income strategies?
How has the adoption of retirement income solutions changed according to T. Rowe Price's (TROW) 2024 DC Consultant Study?
What does T. Rowe Price (TROW) recommend for balancing retirement income and liquidity?
What advice does T. Rowe Price (TROW) offer to plan sponsors regarding retirement income solutions?
