2012 Hot Topics in Retirement - Aon

Retirement Income Solutions/Annuities—Usage and Plans for 2012
Already
O�er Retirement Income Solutions
71%
42%
11%
10%
10%
9%
6%
(n ranges from 271 to 419)
26 Aon Hewitt
Online modeling tools to help
participants determine how much they
can spend each year in retirement
Distributions from plan/automatic
payment (participant elects an automatic
payment from the plan over an extended
period of time)
Within the plan; annuity or insurance
products (e.g., variable annuity features,
guaranteed minimum withdrawal
benefits, preservation of principal,
minimum annuity payout, other)
Within the plan; managed accounts with
drawdown feature (managed account
provider allocates participant assets as well
as manages the amount paid each year from
the plan)
Within the plan; managed payout funds
(funds with an allocation targeted at a
specific payout percentage each year with
no guarantees)
Facilitation of annuities outside the plan
as options for plan distributions
Ability to transfer assets to a defined
benefit plan in order to receive an
annuity
Likely to O�er in 2012
(Among Those Plans That Do Not Currently O�er)
Very
Likely
32%
6%
3%
5%
3%
5%
0%
Somewhat
Likely
32%
18%
13%
14%
14%
10%
4%
Somewhat
Unlikely
14%
36%
33%
35%
36%
32%
14%
Very
Unlikely
23%
40%
51%
46%
46%
54%
83%
Among employers that are unlikely to o�er participants an in-plan retirement
income solution in 2012, the barriers reported most often were fiduciary,
operational/administrative, or participant utilization and communication
concerns. Many plans sponsors (40%) indicated they are waiting to see how
the market evolves, while 57% acknowledge no interest
at this time.