Withdrawal strategies are critical components of effective retirement income planning resources; however, creating comprehensive draw-down strategies can be complex. These strategies must account for a variety of factors beyond the account value at retirement, from healthcare costs to longevity and inflation.

Recordkeepers should provide educational resources, tools and calculators that address the many issues near-retirees and retirees must consider in order to create sustainable retirement income plans. Corporate Insight’s recent report analyzes the availability of such resources on Retirement Plan Monitor coverage group firms’ participant websites.

Few recordkeepers successfully integrate decumulation analysis into their retirement income planning resources

By not integrating decumulation analysis into existing income projection tools, firms limit the usefulness of these tools for those nearing or living in retirement. Only five firms (36%) provide any type of decumulation data within tools, albeit to varying degrees.

Fidelity Retirement Analysis Screen – Hypothetical Detailed Income Chart and Pop-Up

The most common decumulation metrics are the account value each year in retirement and the potential shortfall year, the latter available from 29% of firms. Firms’ selections of tools and calculators covering income planning topics also leaves room for improvement. Even though 71% of firms provide at least one applicable calculator, only 46% provide more than one. Firms are also inconsistent in the types of calculators they offer—none of the types identified in this report are available on even half of participant sites. However, firms’ suites of educational resources are more comprehensive, with more than half of firms offering resources that address six of the identified topics. The most common types of educational resources are those on budgeting in retirement, Social Security and withdrawal strategies (71% each).

Key findings regarding retirement income planning resources

Our report identifies several summary findings and industry trends related to decumulation analysis and other retirement income planning resources. Specifically, we found the following:

  • Few firms integrate decumulation analysis into income projection tools
  • Firms generally offer a few calculators powered by third-party providers
  • Most firms offer well-rounded suites of educational resources covering income planning topics
  • Most firms offer calculators and educational resources but do not integrate decumulation analysis into income projection tools

Subscribers can view the full report on retirement income planning resources on our client portal. For access, or for more competitive intelligence on the user experience that recordkeepers provide participants, check out Corporate Insight’s Retirement Plan Monitor research service offerings.