CANNEX Research: In-Plan Retirement Income: Creating Guaranteed Income with Investment Upside Potential

Toronto, ON– January 3, 2025:  CANNEX Research released a new white paper, sponsored by ALEXIncome, that examines innovative solutions to enhance the effectiveness of 401(k) plans in meeting the evolving needs of retirement savers.

Employers and the financial industry acknowledge that current 401(k) plans are limited in their ability to meet retirement income needs of retired workers. New, modern solutions are needed within the existing structure and operations of 401(k)s and other DC plans to deliver both growth potential with lower volatility during accumulation years and reliable, sustainable lifetime income in retirement.

In this paper, we examine how the ALEXIncome Target Date Strategy is able to address these accumulation and lifetime income objectives. The ALEXIncome prototype hybrid Target Date Fund (TDF) product includes an embedded guaranteed income feature and would be eligible as a Qualified Default Investment Alternative (QDIA).

This analysis focused on how the ALEXIncome solution could potentially improve retirement income for plan participants versus other hybrid options available in the marketplace