In October, Kerry Pechter weighed in on two different retirement income solutions that recently launched: RetireOne’s Constance Portflio Retirement Income Guarantee and BlackRock’s LifePath Paycheck. In his Retirement Income Journal, he covers the broad strokes of each income solution, what they’re used for and how they come at the problem from different directions:
“The two concepts first surfaced in the retirement income world over a decade ago. But the problems they solve and the demand for their benefits—from asset managers, plan sponsors, advisers and pre-retirees—have arguably only grown.”
Constance, a contingent deferred annuity, is designed to protect an existing retirement portfolio during the “fragile decade,” by wrapping an income guarantee around that portfolio. Pechter says of Constance:
“In effect, Constance unbundles an annuity’s income rider from the annuity’s investments. Advisers can bundle that rider with a portfolio they choose.”
He goes on to cover many of the finer points of both retirement income solutions.