There has been a growing sense of urgency among defined contribution stakeholders
By John Sullivan
This article was originally published by 401(K) Specialist
Annexus will begin offering annuities in target date funds, the company announced Tuesday, part of an effort to include lifetime income as part of defined contribution plans, “a necessary innovation that has eluded the retirement market for years.”
It also announced the launch of Annexus Retirement Solutions, which will focus on retirement income solutions. The first product will be available in early 2021.
“There has been a growing sense of urgency among defined contribution stakeholders (recordkeepers, plan sponsors, consultants, and asset managers) that their retirement plan participants need a path to achieve a more secure financial future,” Annexus said in the announcement. “In the wake of the SECURE Act, Annexus Retirement Solutions brings a new perspective to close this gap within the industry.”
Noting the complicated and confusing nature of industry attempts to offer lifetime income solutions so far, Annexus Retirement Solutions claims it’s developed “a completely new and innovative offering that makes it easy for a participant to prepare for a secure financial future.”
Overcoming traditional barriers
Prohibitive costs, lack of true liquidity, and the absence of portability are traditional barriers it was able to overcome to deliver “a seamless, intuitive and automated experience for both participants and plan sponsors.”
“Annexus Retirement Solutions is driven by the philosophy of putting the participant at the center of everything we do,” Don Dady, Co-Founder of Annexus, said in a statement. “Our product design aims to deliver maximum retirement income through a simple, turnkey solution, without compromising flexibility or control. “While companies have been trying to solve the in-plan income challenge for years, by launching Annexus Retirement Solutions, we are offering an integrated solution for a complex problem.”
The company hired a number of retirement industry veterans to help with the effort, including Dave Paulsen, former President of Individual Solutions and Chief Distribution Officer of Transamerica, and Charles Millard, former Director of the U.S. Pension Benefit Guaranty Corp.