Retirement Plans Struggle With Annuity Issue
Helping retirees convert their own lifetime savings into a regular paycheck is proving to be a challenge for retirement-plan sponsors. One solution involves having the retiree buy some kind of annuity, but some plan sponsors fear that could create a legal liability for them. However, other sponsors have moved ahead, offering annuities that employees can invest in gradually as they build their 401(k) nest eggs. Often, the available annuity programs are getting a lukewarm response from plan participants, which may seem at odds with the strong investor interest in assuring a steady income stream in retirement.
Click here to view a brief from Mercer which addresses some key issues regarding annuiites as a solution for retirees longevity risk.