Skip to content

In-Plan Annuities: The Plan Sponsor Perspective

Matthew Drinkwater, Ph.D., FSRI, FLMI, AFSI, PCS 10/25/2023

Are defined contribution plan sponsors interested in offering in-plan annuities?

Summary

The vast majority of defined contribution (DC) plans have no in-plan option for generating lifetime-guaranteed income for retiring employees. In mid-2023, LIMRA surveyed DC plan sponsors in order to understand their perspectives regarding the in-plan annuity market today, and to identify opportunities for insurers and other stakeholders. Among the questions addressed in the study:

  • What are the characteristics of plan sponsors who offer in-plan annuities (IPAs) compared with those who do not offer IPAs?
  • Why do sponsors offer, or not offer, IPAs? Specifically, how important are factors such as cost, complexity, fiduciary concerns, or participant demand in offering IPAs?
  • What methods have employers used to assess whether to offer IPAs?
  • Is the decision to offer IPAs related to decisions about traditional defined benefit pension plans?
  • What proportion of participants elect to contribute to IPAs when offered – and do employers encourage them to do so?
  • Among those sponsors not now offering IPAs, what proportion are considering doing so, and when will they make their decisions?

Download Your Reports

No part of any report may be reproduced or translated without written permission from LIMRA. Please contact Customer Service for further information.

Related Research

Powering Forward: In-Plan Annuities Gain Momentum

In-plan annuities are seeing an uptick in adoption as a growing number of workers have limited access to traditional defined benefit (DB) pensions.

DC Advisor Views: Advisor Perspectives on Retirement Income

Explore DC advisor perspectives on retirement income investment options in DC investment lineups, and as individual income strategies.

Lifetime Income: Do Workers Want Options in Their Plans

Explore consumer interest in lifetime income investment options in DC plans.

Securing the In-Plan Opportunity

Because of SECURE Act 2.0, advances in technology, and innovative product design, LIMRA expects the in-plan annuity opportunity is likely to grow exponentially over the next couple of years, enabling more workers to invest in guaranteed income within their defined contribution retirement savings account.

A Deeper Dive: Annuity Sales Series

Take a deeper dive into which features were selected with annuity products.

A Deeper Dive: 2023 Traditional Variable Annuity Market

Take a deeper dive into which features (such as durations, and more) were selected in a variable deferred annuity products in 2023.

Meet the Project Director

Matthew Drinkwater, Ph.D., FSRI, FLMI, AFSI, PCS

Matt Drinkwater, who joined LIMRA in 1999, leads the annuity and retirement income primary research program. He has led the creation of several major studies of retirement planning, retirement income planning and management, and consumer preferences for receiving advice. Drinkwater has directed several institutional retirement research projects, including studies of asset retention and the rollover market. His research on annuities has encompassed in-depth studies of product features, buyer and owner characteristics, persistency, and living benefit utilization.

He is a graduate of Trinity College (Hartford, CT) and holds a doctorate in psychology from Brown University.

Corporate Vice President, Annuity and Retirement Income Research
LIMRA and LOMA
mdrinkwater@limra.com


For more information, please contact mdrinkwater@limra.com.

Did you accomplish the goal of your visit to our site?

Yes No