State Street Global Advisors and the University of California Innovate on Retirement Income Strategy with Launch to Participants

State Street Global Advisors (State Street), the asset management business of State Street Corporation (NYSE: STT), in partnership with the University of California (UC), today announced that IncomeWise, a deferred lifetime income solution, has launched within the University of California’s defined contribution (DC) plans that serve more than 300,000 participants and include over $34.6 billion in assets.¹

IncomeWise is a next generation solution that blends the flexibility and simplicity of traditional target date funds with the security of guaranteed lifetime income.² Available for defined contribution plans, this solution represents a multi-year, cross-industry development, resulting in a new kind of retirement income strategy.

The enhancement, known as Deferred Lifetime Income at UC, was introduced to the university’s target date fund, Pathway, in August 2021.

“The University of California has been researching how best to evolve our Retirement Savings Program to help participants save during their working years and live long comfortable lives in retirement,” said University of California Chief Investment Officer Jagdeep Singh Bachher. “People are living longer, with smaller pensions due to shorter job tenures. Given market volatility, there’s now a strong need for a supplemental source of guaranteed income in the later years of life. Deferred Lifetime Income is an innovative solution and an important step toward improving retirement security for our participants.”

Leveraging insights gleaned from State Street’s 25-plus years of managing target date strategies, IncomeWise focuses on providing a simple investment option to support participants through all their retirement years. The solution uses State Street’s target date glidepath to help participants accumulate wealth during their savings years. A portion of these savings can then be converted into a guaranteed income stream for later years of retirement by purchasing a qualified longevity annuity contract (QLAC). This approach offers participants income security when they are likely to need it most, while providing flexibility and access to savings during their early retirement years.