Mercer, a global HR outsourcing company owned by Marsh and McLennan, and Financial Engines, an RIA founded by Nobel Prize-winning economist Bill Sharpe, announced Monday that Financial Engines’ Income+, a retirement income platform designed specifically for 401(k) plans, has been rolled out to Mercer’s defined contribution administration client base.
According to the companies, Income+ is a feature of Financial Engines’ managed account designed to balance safety and growth in the years leading up to retirement. 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 Income+ feature is available to participants in Financial Engines’ managed accounts program at no additional cost. Income+ does not require employers to add an annuity or change the fund line-up in their plan.
As part of a managed account, Income+ gives employees control of their money, which stays in their 401(k) accounts and doesn’t lock them into a particular investment or insurance product. Employees can start payouts, stop payouts, take additional withdrawals or cancel at any time without penalty, giving them full access to their 401(k) savings as needed.
“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, in a statement. “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, we are also enhancing our website by seamlessly integrating Financial Engines retirement forecasts into our online experience, further driving participant retirement readiness.”