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OneDigital Retirement + Wealth VP of Investments Michael Esselman Featured in NAPA Net the Magazine’s Spring 2022 Issue

According to a Plan Sponsor Council of America survey, only 10% of retirement plans offer lifetime income options to employees.

The cover story of their Spring 2022 issue was around adding lifetime income provisions into 401(k) plans. OneDigital Retirement + Wealth’s Vice President of Investments, Michael Esselman, expresses his thoughts on the current state of these types of products and their long-term future in 401(k) investment lineups. One of the possible outcomes is a newly introduced product that is a target date fund with a lifetime income component. In the NAPA Net cover story article, “Out’takes New Solutions for an Old Problem," Michael states that he believes that before these products become widely available, retirement plan advisors need to educate themselves on these products.

He goes on further to state:

Our stance at OneDigital is, let’s start digging into the weeds of these new solutions, see how they work, and then we can bring it up with committees when it’s appropriate. These products aren’t going to be for all plan sponsors: It’s still about employee demographics.

Also, Esselman believes that these new products could significantly impact the lowering of the fees for lifetime income products.

When you start bringing them into 401(k) plans, especially embedded in target date funds, scale builds quickly- and scale, we know, brings down costs. Once you have a large captive pool of assets you gain a lot of efficiencies.
— Michael Esselman, Vice President of Investments, OneDigital Retirement + Wealth

If you would like to learn more on this topic you can read the full NAPA Net magazine here.

Want to read more on investment types? Check out this recent article: What Every Plan Sponsor Should Know About Collective Investment Trusts.

Investment advice offered through OneDigital Investment Advisors, an SEC-registered investment adviser and wholly owned subsidiary of OneDigital.