The Department of the Treasury and the Internal Revenue Service released new guidance that is “designed to expand the use of income annuities in 401(k) plans.”
WASHINGTON, D.C. – The Insured Retirement Institute (IRI) today released the following statement from IRI President and CEO Cathy Weatherford after the Department of Labor (DOL) said it expects to propose a revised “fiduciary rule” in 2015, as opposed to its previously announced target of August 2014. The proposed rule would change the circumstances under which a provider of investment advice is considered a fiduciary under the Employee Retirement Income Security Act (ERISA).
“IRI’s research has overwhelmingly demonstrated the benefits of planning for retirement with the help of a financial professional. Americans working with financial advisors to plan for their financial security in retirement exhibit better planning behaviors, save at greater rates, and have achieved overall higher levels of retirement savings. IRI continues to be concerned that a forthcoming rule proposal from the DOL could have unintended consequences that would ultimately deprive lower- and middle-income Americans from accessing affordable retirement planning services and advice. This new rulemaking timetable will provide more time and a new opportunity to work with the Administration to ensure that no rule proposal will prevent access to the important advice provided to Americans by their financial advisors. By working together, we can protect the client-advisor relationship and help ensure that all Americans have the opportunity to attain a financially secure and dignified retirement.”
IRI’s research results from a January survey of Americans aged 51 to 67 shows that investors are overwhelmingly satisfied with their relationship with their advisor. Among the findings:
· Eight in 10 said they are better prepared for retirement because of their financial advisor
· Three in four said they are likely to recommend their advisor to a friend or relative
· 80 percent are aware of potential conflicts of interest
· The overwhelming majority of clients agreed that their advisor acts in their best interest
· Less than 5 percent of investors share the view used to justify the proposed rule, with less than 1 percent strongly agreeing
Click HERE to view IRI’s fact sheet on protecting access to retirement planning services and information.
About the Insured Retirement Institute: The Insured Retirement Institute (IRI) is the leading association for the retirement income industry. IRI proudly leads a national consumer coalition of more than 30 organizations, and is the only association that represents the entire supply chain of insured retirement strategies. IRI members are the major insurers, asset managers, broker-dealers/distributors, and 150,000 financial professionals. As a not-for-profit organization, IRI provides an objective forum for communication and education, and advocates for the sustainable retirement solutions Americans need to help achieve a secure and dignified retirement. Learn more at www.irionline.org.