IncomeWise™ Target Date Strategies to Become Available on Voya Platform; ABA Retirement Funds Program to Become First Adopter on the Platform
State Street Global Advisors (NYSE: STT) announced the expansion of its IncomeWise™ Target Retirement Strategies to the Voya Financial recordkeeping platform. The ABA Retirement Funds Program will be the first adopter on this platform, with Mercer Trust Company serving as the investment fiduciary.
IncomeWise combines traditional index-based target-date funds with optional income features, including deferred annuity payments and automatic monthly withdrawals. The solution, which has over $20 billion in committed assets, will be available through Voya as the second recordkeeper after Fidelity Investments.
This expansion aligns with State Street's strategy to provide flexible retirement solutions, helping participants build confidence in their financial futures through a simple two-step election process for activating income across their target-date fund balance.
State Street Global Advisors (NYSE: STT) ha annunciato l'espansione delle sue Strategie di Pensionamento Target IncomeWise™ sulla piattaforma di registrazione Voya Financial. Il Programma dei Fondi Pensionistici ABA sarà il primo ad adottare questa piattaforma, con Mercer Trust Company che fungerà da fiduciario per gli investimenti.
IncomeWise combina fondi a data target basati su indici tradizionali con caratteristiche di reddito opzionali, inclusi pagamenti di rendita differita e prelievi mensili automatici. La soluzione, che ha oltre $20 miliardi in attivi impegnati, sarà disponibile tramite Voya come secondo registratore dopo Fidelity Investments.
Questa espansione è in linea con la strategia di State Street di fornire soluzioni pensionistiche flessibili, aiutando i partecipanti a costruire fiducia nel loro futuro finanziario attraverso un semplice processo di elezione in due fasi per attivare il reddito sul loro saldo del fondo a data target.
State Street Global Advisors (NYSE: STT) anunció la expansión de sus Estrategias de Jubilación Target IncomeWise™ en la plataforma de registro Voya Financial. El Programa de Fondos de Jubilación ABA será el primero en adoptar esta plataforma, con Mercer Trust Company actuando como fiduciario de inversiones.
IncomeWise combina fondos de fecha objetivo basados en índices tradicionales con características de ingresos opcionales, incluyendo pagos de anualidades diferidas y retiros mensuales automáticos. La solución, que cuenta con más de $20 mil millones en activos comprometidos, estará disponible a través de Voya como el segundo registrador después de Fidelity Investments.
Esta expansión se alinea con la estrategia de State Street de proporcionar soluciones de jubilación flexibles, ayudando a los participantes a construir confianza en su futuro financiero a través de un simple proceso de elección en dos pasos para activar ingresos en su saldo del fondo de fecha objetivo.
State Street Global Advisors (NYSE: STT)는 Voya Financial 기록 관리 플랫폼에 IncomeWise™ 목표 퇴직 전략의 확장을 발표했습니다. ABA 퇴직 기금 프로그램이 이 플랫폼의 첫 번째 수용자가 되며, Mercer Trust Company가 투자 수탁자로 역할을 합니다.
IncomeWise는 전통적인 지수 기반의 목표 날짜 펀드와 선택적 소득 기능을 결합하여, 연기된 연금 지급 및 자동 월별 인출을 포함합니다. 200억 달러 이상의 약속된 자산을 보유한 이 솔루션은 Fidelity Investments에 이어 Voya를 통해 두 번째 기록 관리자로 제공될 예정입니다.
이번 확장은 State Street의 유연한 퇴직 솔루션 제공 전략과 일치하며, 참가자들이 목표 날짜 펀드 잔액에서 소득을 활성화하기 위한 간단한 두 단계의 선택 프로세스를 통해 재정적 미래에 대한 신뢰를 구축하도록 돕습니다.
State Street Global Advisors (NYSE: STT) a annoncé l'expansion de ses Stratégies de Retraite Ciblées IncomeWise™ sur la plateforme de tenue de dossiers Voya Financial. Le Programme de Fonds de Retraite ABA sera le premier à adopter cette plateforme, avec Mercer Trust Company agissant en tant que fiduciaire des investissements.
IncomeWise combine des fonds à date cible basés sur des indices traditionnels avec des caractéristiques de revenu optionnelles, y compris des paiements de rente différés et des retraits mensuels automatiques. La solution, qui dispose de plus de 20 milliards de dollars d'actifs engagés, sera disponible via Voya en tant que deuxième gestionnaire de dossiers après Fidelity Investments.
Cette expansion s'inscrit dans la stratégie de State Street visant à fournir des solutions de retraite flexibles, aidant les participants à renforcer leur confiance dans leur avenir financier grâce à un simple processus de choix en deux étapes pour activer des revenus sur leur solde de fonds à date cible.
State Street Global Advisors (NYSE: STT) hat die Erweiterung seiner IncomeWise™ Ziel-Rentenstrategien auf die Voya Financial Plattform bekannt gegeben. Das ABA Rentenfondsprogramm wird der erste Anwender auf dieser Plattform sein, wobei die Mercer Trust Company als Anlagefiduzar fungiert.
IncomeWise kombiniert traditionelle indexbasierte Ziel-Datenfonds mit optionalen Einkommensmerkmalen, einschließlich aufgeschobener Rentenzahlungen und automatischer monatlicher Abhebungen. Die Lösung, die über 20 Milliarden US-Dollar an zugesagten Vermögenswerten verfügt, wird über Voya als zweiter Recordkeeper nach Fidelity Investments verfügbar sein.
Diese Erweiterung steht im Einklang mit der Strategie von State Street, flexible Rentenlösungen anzubieten, die den Teilnehmern helfen, Vertrauen in ihre finanzielle Zukunft aufzubauen, durch einen einfachen zweistufigen Wahlprozess zur Aktivierung von Einkommen aus ihrem Ziel-Datenfondsbestand.
- Secured $20B+ in committed assets for IncomeWise program
- Expanded distribution through second major platform (Voya)
- Gained first institutional client (ABA Retirement Funds) on new platform
- None.
Insights
State Street Global Advisors is expanding distribution of its IncomeWise Target Retirement Strategies through a new agreement with Voya Financial's recordkeeping platform. This strategic move strengthens State Street's retirement solutions footprint beyond their existing Fidelity Investments channel.
The announcement reveals that IncomeWise and related target-date strategies already have
For State Street investors, this represents incremental growth potential for their asset management business through three key mechanisms: 1) broader distribution reach through a major recordkeeper, 2) increased assets under management as new retirement plans adopt the solution, and 3) recurring fee generation from the retirement asset base.
The IncomeWise product differentiates through its hybrid approach, combining traditional target-date funds with optional income activation features including deferred annuities and structured withdrawals. This positions State Street competitively in the evolving retirement income space where plan sponsors increasingly seek solutions addressing longevity risk.
While not transformative to State Street's overall financial picture, this development represents measured progress in their strategy to capture more retirement assets – a significant growth area as demographic trends continue pushing more assets toward decumulation phase products.
Solution Demonstrates a Shared Continued Commitment to Helping Improve Participant Outcomes
The ABA Retirement Funds Program (the “ABA Program”) will be the first adopter on the Voya Financial recordkeeping platform. Mercer Trust Company LLC serves as the investment fiduciary for the ABA Program.
“Working together with Voya is a significant step in making IncomeWise accessible to a broader audience of retirement savers, including plan sponsors and participants within the ABA Program,” said Brendan Curran, Head of US Retirement at State Street Global Advisors. “Americans face increasing complexity in retirement planning, and IncomeWise offers a flexible approach to help participants build confidence in their financial futures.”
IncomeWise blends the simplicity of traditional index-based target-date funds with the option for participants to activate income across part or all of their target-date fund balance. Through a simple two-step election process, participants can choose to activate two integrated income features: deferred annuity payments for lifelong security and automatic monthly withdrawals that provide a structured spend-down option. This combination offers both flexibility and longevity protection, helping participants create a retirement income strategy that aligns with their needs.
“We welcome the opportunity to support the ABA Program in providing its plan sponsors and participants with a growing set of tools to help improve future retirement outcomes,” said Ginger Brennan, head of ABA Retirement Funds Program and Multiple Employer Solutions at Voya Financial. “This is the next step in expanding the ABA Program’s Retiree Menu, which provides participants nearing or in retirement with custom investment options and education, by now providing solutions for those individuals wanting the assurances that come with guaranteed income.”
Voya also intends to make IncomeWise available to additional eligible clients in the future, making Voya the second recordkeeper making IncomeWise available, after Fidelity Investments. IncomeWise and related custom target-date strategies now have more than
Established more than 60 years ago by the American Bar Association, the ABA Retirement Funds Program sponsors a full-service retirement solution for legal community organizations. The adoption of IncomeWise further reflects the ABA Program’s focus on participant outcomes and retirement plan innovation.
About State Street Global Advisors
For over four decades, State Street Global Advisors has served the world’s governments, institutions, and financial advisors. With a rigorous, risk-aware approach built on research, analysis, and market-tested experience, and as pioneers in index and ETF investing, we are always inventing new ways to invest. As a result, we have become the world’s fourth-largest asset manager* with
*Pensions & Investments Research Center, as of 12/31/23.
†This figure is presented as of December 31, 2024 and includes ETF AUM of
About Voya Financial
Voya Financial, Inc. (NYSE: VOYA) is a leading health, wealth and investment company with approximately 10,000 employees who are focused on achieving Voya’s aspirational vision: "Clearing your path to financial confidence and a more fulfilling life." Through products, solutions and technologies, Voya helps its approximately 15.7 million individual, workplace and institutional clients become well planned, well invested and well protected. Benefitfocus, a Voya company and a leading benefits administration provider, extends the reach of Voya’s workplace benefits and savings offerings by engaging directly with approximately 11.9 million employees in the
This material is for educational purposes only; no investment, financial or tax advice or recommendation is provided. It does not suggest taking or refraining from any course of action and should not be used as basis for making any investment decision. It is not designed to be a recommendation of any specific insurance or investment product or strategy and it should not be considered a solicitation to buy or an offer to sell any security or insurance product.
The information in this material solely illustrates some aspects of IncomeWise. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. Plan participants should consult their tax and financial advisor(s) prior to making a decision to invest in IncomeWise or elect or not Deferred Guaranteed Income or Immediate Income. Neither State Street Global Advisors (“SSGA”) nor its affiliates or representatives engages or has engaged in the delivery of investment advice to plan participants.
SSGA does not make any recommendation about whether IncomeWise is suitable for any individual plan participant. The election to participate or not in IncomeWise is made by each individual participant. SSGA does not provide financial or investment or tax advice or recommendations, or otherwise act as a fiduciary, to plan participants in connection with this determination or this election.
IncomeWise is not intended to be a complete investment program, but rather intends to supplement a plan participant’s retirement savings strategy. Participants should consult their own advisers regarding the role of the IncomeWise features in their overall retirement savings approach. There is no guarantee that IncomeWise will satisfy a participant’s retirement goals or needs. IncomeWise does not protect against the risk that participants deplete or outlive their retirement savings.
Investing involves risks including the risk of loss of principal. An investment in the funds is not insured by the FDIC or by any other governmental agency, and it is not an obligation or deposit of or guaranteed by SSGA or any of SSGA’s affiliates, including State Street Bank and Trust Company, or any other bank.
IncomeWise Retirement Income is comprised of two features available for eligible participants to elect: Deferred Guaranteed Income and Immediate Income. Deferred Guaranteed Income (QLAC) and Immediate Income are subject to eligibility requirements, conditions and limitations.
Deferred Guaranteed Income is an option available only to eligible plan participants and refers to the purchase of a qualified longevity annuity contract (QLAC), which is an insurance product issued to electing participants by a third-party insurance company that guarantees monthly payments that begin at age 78 for the rest of the plan participant’s life, or for the life of the spouse of the plan participant as applicable, whichever is longer. Deferred Guaranteed Income (QLAC) is subject to eligibility requirements, conditions and limitations.
QLAC payments are subject to the claims-paying ability of the issuing insurance company; it is possible that the issuing company may not be able to honor the annuity payouts at any time. The QLAC is provided by a third-party insurance company selected by SSGA annually. SSGA offers no assurances or guarantees of the selected annuity provider’s performance. SSGA undertakes no obligation to review or monitor the performance of an insurance provider with respect to a purchased QLAC following the date of purchase.
The QLAC purchase is subject to market availability and the selection of an insurance provider. A participant may rescind the QLAC purchase during the “free-look period” and after this period the QLAC purchase is irrevocable.
Deferred Guaranteed Income/QLAC payments are not insured by the FDIC or by any other governmental agency, and are not an obligation or a deposit of or guaranteed by SSGA or any of SSGA’s affiliates, including State Street Bank and Trust Company, or any other bank.
SSGA does not make any recommendation about whether the QLAC feature is suitable for any individual plan participant. The election to purchase or not Deferred Guaranteed Income is made by each individual participant. SSGA does not provide financial or investment or tax advice or recommendations, or otherwise act as a fiduciary, to plan participants in connection with these determination or these elections. Plan participants should consult their tax and financial advisor(s) with respect to Deferred Guaranteed Income.
Immediate Income is an option available only to eligible plan participants who elect Deferred Guaranteed Income. Immediate Income is subject to eligibility requirements, conditions and limitations.
Immediate Income refers to automatic monthly drawdowns from a plan participant’s eligible IncomeWise balance that the participant may elect to receive via IncomeWise. Immediate Income distributions are not guaranteed and are subject to the continuing sufficiency of the plan participant’s eligible assets invested in IncomeWise. Immediate Income distributions may fluctuate year-over-year, may not last until and will likely materially decrease at age 78, and may not continue thereafter.
Immediate Income distributions are not insured by the FDIC or by any other governmental agency, and are not an obligation or a deposit of or guaranteed by SSGA or any of SSGA’s affiliates, including State Street Bank and Trust Company, or any other bank.
A participant’s Immediate Income distribution amount is calculated by a third party based on SSGA’s cohort drawdown rates and the participant’s eligible plan assets invested in IncomeWise. The distribution amount is adjusted annually and when turning 78, and will not adjust to account for the start of QLAC annuity payments earlier than age 78, which could result in savings being depleted faster than intended. Participants may cancel Immediate Income for any reason at any time, including if they do not wish to receive the adjusted distribution amount. Once cancelled, Immediate Income cannot be reinstated.
SSGA does not make any recommendation about whether the Immediate Income feature or amounts or drawdown rate is/are suitable for any individual plan participant. The election to receive or not Immediate Income is made by each individual participant. SSGA does not provide financial or investment or tax advice or recommendation, or otherwise act as a fiduciary, to plan participants in connection with these determinations or these elections. Plan participants should consult their tax and financial advisor(s) with respect to Immediate Income.
The State Street Target Retirement Funds (“Target Retirement Funds”) are designed for investors expecting to retire around the year in each fund’s name. When selecting a target date fund or “vintage”, participants should consider if they anticipate retiring significantly earlier or later than age 65, even if such participants retire on or near a fund’s approximate target date. There may be other considerations relevant to fund selection and participants should select the fund that best meets their individual circumstances and investment goals.
The Target Retirement Funds’ asset allocation becomes increasingly conservative as they approach their target date and beyond, and the investment risks of the funds change over time as their asset allocation changes. Once a target date fund reaches its target retirement date, it begins a five-year transition period to the retirement fund. Asset allocation does not guarantee a profit or protect against loss. An investment in the Target Retirement Funds is not insured by the FDIC or by any other governmental agency, and is not an obligation or a deposit of or guaranteed by SSGA or any of SSGA’s affiliates, including State Street Bank and Trust Company, or any other bank. Please refer to the disclosure documents for the Target Retirement Funds for further information on these funds and important risk considerations associated with an investment in them.
The Target Retirement Funds are bank-maintained collective investment trust maintained and managed by SSGA. SSGA is a limited purpose trust company established under the laws of the Commonwealth of
The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.
All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.
The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.
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Michael Kingsley
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Source: State Street Corporation
FAQ
What are the key features of State Street's IncomeWise Target Retirement Strategies (STT)?
How much committed assets does State Street's IncomeWise program currently manage?
Which platforms currently offer State Street's IncomeWise retirement solution?
Who is the first adopter of IncomeWise on the Voya platform?
