Conning Report: Guaranteed Income Options in Target Date Funds a Trillion-Dollar Opportunity for Insurers

December 04, 2024


HARTFORD, CT – December 3, 2024 – While 401(k) plans have largely focused on plan member retirement asset accumulation, a growing number of participants are looking for guaranteed income (GI) options. One promising approach includes embedding GI into Date Funds (TDFs), the predominant default investment of many 401(k) plans. 

“Our analysis suggests that some plans may benefit from using a customized GI solution, but they are not yet available,” said Manu Mazumdar, a Director and Head of Data Analytics and Insurance Technology at Conning. “However, we think they will rapidly evolve as plan sponsors understand the potential rewards.”  

Conning’s latest focus report, Horses for Courses … a Customized Solution for 401(k) Guaranteed Income, examines the market dynamics of both turnkey and customized GI solutions and identifies the types of 401(k) plans that are the best candidates for a customized solution. The report also sizes the potential market opportunity for insurers.   

“Historically, life Insurance companies were a dominant force in the retirement plan market,” said Scott Hawkins, Managing Director and Head of Insurance Research at Conning. “Since the passage of the SECURE Acts, insurers have accelerated the rollout of new GI products for 401(k) plans. We think the insurance industry has a trillion-dollar opportunity in embedding GI in TDFs.” 


Horses for Courses … a Customized Solution for 401(k) Guaranteed Income” is available for purchase from Conning by calling (888) 707-1177 or by visiting here.

 

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ABOUT CONNING
Conning (www.conning.com) is a leading investment management firm with a long history of serving the insurance industry. Conning supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.

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Media Contacts
Alyssa Gittleman
Conning
860-299-2288
alyssa.gittleman@conning.com