Mercer’s U.S. outsourcing business has begun including retirement income from Financial Engines in its defined contribution platform. Financial Engines says its Financial Engines Income+ is the first retirement income solution designed specifically for 401(k) plans.
With the launch, three clients have already signed up to offer Financial Engines Income+: Freeman, Kinder Morgan and Milacon.
“Our clients look to us to help them engage and empower their employees to live, work and retire well,” said Dave Tolve, retirement business leader for Mercer’s U.S. outsourcing business. “Income+ is an innovative retirement income solution that can help participants prepare for and retire with confidence, and that translates into a more engaged workforce for our clients.”
Later this year, Mercer plans to include Financial Engines’ retirement calculator, or retirement forecasts, on its website for participants.
Financial Engines introduced Income+ in January. Structured as a managed account, it provides steady monthly payouts from a 401(k) account, which can last for life with the optional purchase of an out-of-plan annuity.
The existing Income+ account is not an annuity, and therefore gives participants the flexibility to start payouts, stop payouts, take additional withdrawals or cancel at any time without penalty.
“We are excited to have another large 401(k) provider go live with Income+, making the valuable retirement income service available to more participants nationwide,” said Larry Raffone, executive vice president at Financial Engines. “We are committed to working with our recordkeeping partners to integrate our services into their participant experiences, which will translate into more participants getting the retirement help they so urgently need.”
-- This article first appeared on Money Management Executive.