DC plans are addressing a wider range of participant circumstances via more customization, layered communications and programs that build financial resilience

The impact of the COVID-19 pandemic and the ongoing variant spread has transformed the U.S. workforce, causing many to retire earlier than planned, others to retire later than planned, and adding to concerns about financial security across the board. For defined contribution plan sponsors, it has honed their participant retirement outcomes using a wider array of products and services, and more targeted messaging on retirement security.

“A lot of people don’t have a solid understanding of how savings today can translate into future income and, when they reach retirement age, they are surprised that their savings don’t generate more income,” said Jennifer DeLong, senior vice president, managing director and head of defined contribution at AllianceBernstein. “Plan sponsors are more focused on how they can design DC plans better and how they can develop tools that provide participants with greater retirement security.”

“Different groups of people experienced the effects of the pandemic and the [provisions of] the CARES Act in different ways. We have to think about how to meet different needs in the moment, or we’ll fall short when retirement comes,” said Lorie Latham, senior defined contribution strategist for the Americas division at T. Rowe Price. “Increasingly, we realize that the unique needs of individuals have to be taken into consideration along the entire retirement journey. As we reset priorities, there’s a greater need to address financial wellness with a specific focus on retirement preparedness and retirement income.”

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