In response to growing concerns over financial security in retirement, the National Association of Plan Advisors has unveiled a pioneering certificate program designed to help advisors offer effective retirement income strategies to their clients.
NAPA’s new program, the retirement income for 401(k) plans certificate, was put together by some of the country’s leading retirement education experts.
The RI(k) certificate program aims to help advisors articulate the importance of retirement income solutions to clients, and show them how they can support participants’ broader financial goals.
Advisors who go through the program are also expected to be able to select the most suitable plans based on specific factors, explain the features and benefits of retirement income solutions to stakeholders, and decide on continuous learning strategies to keep up with the evolving solutions in the marketplace.
NAPA is launching its new program against a backdrop of mounting retirement challenges for Americans. Aside from the slow-motion demise of defined-benefit pension plans, increasingly longer lifespans have raised the risks of retirees outliving the nest eggs they accumulated during their working years.
“401(k) plans are tremendously successful workplace savings programs, but they are not yet truly retirement plans,” Brian Graff, NAPA’s executive director and CEO of the American Retirement Association, said in a statement.
“Retirement income solutions have the promise of addressing this gap, enabling participants to receive income in retirement from plan investments,” Graff said.
A survey of retirement plan sponsors conducted by J.P. Morgan Asset Management revealed a strong consensus on the importance of assisting participants in generating retirement income, with more 80% expressing a firm commitment to that goal.
The retirement income for 401(k) plans certification is structured as a self-directed course comprising five interactive modules. It covers a comprehensive range of topics, including an overview of available retirement income solutions, the identification of risks these solutions aim to mitigate, and strategies for their implementation through a careful and informed process.
With the support of 10 organizations backing the program – including AllianceBernstein, Broadridge, Franklin Templeton, and Voya Financial – NAPA says the RI(k) course is available to its advisor members at no cost.