Andrew Stumacher
20 Years at AB|20 Years of Experience
Andrew Stumacher is a Senior Vice President and Managing Director for AB’s Customized Defined Contribution Solutions. He is responsible for developing, implementing and driving the growth of custom target-date, model portfolio and retirement income strategies for the large and mega-size institutional plan market, in which AB serves as one of the largest managers in the US. Stumacher works in close collaboration with plan sponsors, consultants and external business partners to develop innovative and flexible products to improve outcomes for DC plans and participants. He joined the firm in 2004 as a marketing analyst, focusing on strategy and development for new institutional products. From 2011 to 2017, Stumacher managed the integration of AB’s DC products with recordkeepers, trustees, custodians, insurers and investment managers as the DC partner relationship officer. He holds a BS in applied economics and management from Cornell University and an MBA from Wagner College as well as the Certified Annuity Specialist™ designation from the Institute of Business & Finance. Location: New York
Published Work
Engaging up front with four key workstreams may smooth the process of adding a solution.
For DC plan sponsors, developing a short list of income solutions is a good first step.
Steady income and access to remaining assets are key considerations for DC plan sponsors.
It can be a tall task to compare diverse lifetime income solutions. Applying a comprehensive framework may enable a level playing field.
Secure lifetime income is a top wish-list item for defined contribution plan participants, and it has benefits for plan sponsors too. But there are very different ways to deliver it.
A secure lifetime income solution can seamlessly continue the “do it for me” structure that has helped DC plan participants save in their working years.
Matching workforce value propositions to changing employee needs can help ease growing anxieties about retirement and financial wellness.
Lifetime income solutions are high on DC plan wish lists, but a consistent framework is needed to evaluate their features, benefits and costs on a level playing field.
DC plan participants who retire with guaranteed lifetime income typically consider the hardest part of their planning finished. But potential tail risks in retirement can still alter their journey, giving them more reason to carefully consider how different income strategies reduce or even create risks
DC plan participants who secure guaranteed retirement income over time—much like dollar cost averaging—rather than all at once at retirement tend to be better insulated from the impact of market and interest-rate volatility on income.
Retirement planning has evolved from a singular focus on savings to ensuring that account values provide income for life. Multiple generations of DC plan participants are concerned that they'll outlive their retirement savings, and they're turning to plan sponsors for solutions.
Planning for retirement has historically been focused on saving as much as possible. But if the actual target is to secure income for life, we think giving participants a preview of the future income they're building can encourage even better savings habits now.
As more plan participants worry about retirement income security, demand for guaranteed income solutions is growing-and plan sponsors are pondering the options. While there are many ways to measure the benefits, we believe that some approaches-like in-plan and default options-have distinct advantages.
The SECURE Act will likely prompt more DC plan sponsors to seriously consider adopting a lifetime income solution. Plan sponsors may also determine that they want to let participants keep their assets in the DC plan during the withdrawal phase of retirement. This could be beneficial for both the plan and the participants.
When it comes to implementing a secure lifetime income solution for a defined contribution (DC) plan, sponsors may balk at the task of evaluating insurers and different types of retirement income options. But fiduciary help is already available, with additional services and innovations on the way.
Washington legislators have crafted some substantive support for defined contribution (DC) plans to offer secure income solutions for participants. The Secure Act, currently under Senate review, may be a key component in clearing away some hurdles that have previously made DC plan sponsors hesitant to incorporate lifetime income solutions.
Plan sponsors evaluating packaged and custom target-date solutions should take a close look at the demographics of their plan participants and how they stack up against those of a "typical" plan. It's critical information when making a glide-path decision.
Many plan sponsors wrestle with the decision of choosing—or changing—a target-date solution. Is a packaged product appropriate for plan participants, or are there advantages to using a custom solution? Or is there perhaps another choice?