Earlier this year, the COVID 19 pandemic and the accompanying market volatility had drawn away some of the attention plan sponsors were paying to retirement income, but their focus has started to return, said Lorie Latham, CFA, Senior Defined Contribution Strategist at T. Rowe Price. “Retirement income is a central theme with us, and with our clients and prospects across the board.”
The passage of the SECURE (Setting Every Community up for Retirement Enhancement) Act and the Department of Labor’s interim rules on lifetime income disclosure have encouraged plan sponsors to move forward on retirement income, said Latham, speaking at Pensions & Investments’ Retirement Income virtual series. “How far our plan sponsors are on the spectrum for implementation or exploration depends on the industry or sector they're in and, more importantly, how they've been impacted by the pandemic,” she said. Some clients have already implemented a solution or are on the brink, and the pandemic hasn’t deterred that process, while others are wanting help with understanding the retirement income landscape and how it can be relevant to their plans, she noted.