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American International Group, Inc.’s AIG unit, AIG Retirement Services, recently unveiled that it will act as the exclusive retirement plan provider for Ontario County’s local government. The county is situated within the U.S. state of New York.
By virtue of the same, AIG Retirement Services will offer personalized retirement planning programs to over 1,000 employees of Ontario County. After completing their tenure at work, government employees will be able to save and attain their planned retirement goals, thereby leading to a secured financial future.
One of the primary reasons for selecting AIG Retirement Services is its credible retirement plan expertise for guiding tax-exempt and public sector employees. It is currently trusted by over 2,200 government entities. American International’s unit’s over six-decade old history of catering to the retirement needs of government workers can be another reason for its selection.
Initiatives similar to the latest one are expected to boost capabilities and presence of AIG Retirement Services, which is known for offering defined contribution retirement plans, in Ontario County. The county, which offers deferred contribution retirement plans that entail contribution from employers, employees or both to generate retirement savings, appears to be an apt place for the AIG unit to capitalize on.
The move seems time opportune one as well since the COVID-19 pandemic-induced volatilities have wreaked financial insecurities across the United States. Apart from this, other factors like an aging U.S. population leading to an increase in the number of persons attaining retirement age and employers’ intensified focus on offering defined contribution plans are likely to pave the way for American International to capitalize on by bringing about enhanced retirement plan experiences.
American International has been striving to offer comprehensive financial planning for retirees. This endeavor is being pursued by its member companies as well. The same unit of AIG had been given the role of exclusive retirement plan provider for the non-profit health care system named Care New England in 2021. AIG Retirement Services has also resorted to multiple initiatives to boost its capabilities. It had launched a Total Retirement Services solution for seamless integration of both defined contribution and defined benefit plans integrated into a single solution. The AIG unit rolled out a modernized mobile app for easing workplace retirement plan enrollments.
The capabilities of American International’s Life & Retirement business can be further substantiated by AIG’s faith in it to prosper as a stand-alone entity. To that end, AIG sold 9.9% equity stake of its Life & Retirement Business to one of the world’s leading investment firms Blackstone in November 2021 as part of its plans to separate the business. In sync with the same endeavor, American International plans to pursue an initial public offering (IPO) in 2022.