WealthTech on Deck Making Retirement Easier Through Lifetime Income Solutions with David Blanchett
Defined contribution plans have been instrumental in helping people save for retirement. However, these plans often fail to protect individuals against longevity risk. Incorporating lifetime income solutions like annuities can help people prevent outliving their savings during retirement.
In this episode, Jack talks with David Blanchett, Managing Director, Portfolio Manager, and Head of Retirement Research at PGIM DC Solutions. In this role, David develops solutions to help improve retirement outcomes for investors with a specific focus on defined contribution plans. He is also responsible for the portfolio management of the PGIM Target Date Funds. Before joining PGIM, David was the Head of Retirement Research for Morningstar Investment Management LLC and the Director of Consulting and Investment Research for the Retirement Plan Consulting Group at Unified Trust Company.
David joins Jack to discuss various aspects of retirement planning and how the industry can operate better to improve retirement outcomes for clients, participants, and advisors. David shares his insights on three key areas: improving defined contribution plans, enhancing financial plans, and making retirement easier through lifetime income solutions. He emphasizes the importance of access to retirement savings plans, the need for comprehensive financial planning, and the role of annuities in providing longevity protection.
Key Takeaways
- [01:55] - David's thoughts on improving defined contribution plans for retirees.
- [03:03] - David's role at PGIM DC Solutions.
- [04:04] - How to improve contribution plans and in-plan retirement solutions.
- [08:29] - The need for a financial plan and the different avenues for receiving advice.
- [10:39] - The confluence of digital and human advice.
- [13:17] - The shift from investment-focused planning to holistic planning.
- [15:56] - Understanding annuities and their potential benefits for clients.
- [20:50] - Overcoming operational roadblocks to utilizing annuities.
- [22:11] - David's key takeaways.
Quotes
[09:48] - "If you can't get advice and you do it yourself, you'll make mistakes. These can be very expensive mistakes. So, giving individuals access to advice the way they want will have a huge long-term success." ~ David Blanchett
[11:34] - "The fundamental value of an advisor is not the investments. It's more of the behavioral financial planning coach." ~ David Blanchett
[19:16] - "There are very good annuities out there your clients could use. You have to learn how they work and how to identify them. Doing that can create better client outcomes than just focusing on the portfolio alone." ~ David Blanchett
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