The other half of the equation: Annuities offer tool to deal with post-accumulation period

For many years saving for retirement has been seen as the main challenge for plan participants.  Employee Benefit Adviser published an article, written by Rachel D. Kugelmass and Durando J. Saccente, pointing out that the challenge has now become two-fold.  Participants are now finding themselves unprepared to manage their nest egg to ensure longevity of their nest egg during their retirement years. This article recognizes the two-part equation and does not try to make a hard sell on the idea of a certain product or to include annuities or not in DC Plans but simply points out the concern for the “post-accumulation period” and offers information on a possible solution.  The offering of annuities through DC Plans makes sense. It can be cost effective for the participant and addresses the participant’s “post-accumulation period”.  The article does an excellent job of explaining the benefits to the employee and the options available to Plan Sponsors considering utilizing this approach. Click here to find out more about this idea of including annuities in DC Plans.