U.S. employers slow to offer annuities and insurance-backed products
July 29, 2016 by Lifehealthpro Editors
U.S. employers that sponsor defined contribution (DC) retirement plans are beginning to embrace lifetime income solutions to help employees improve their financial security in retirement, according to a new Lifetime Income Solutions Survey by Willis Towers Watson, a global advisory, broking and solutions company. Lifetime income solutions include education and the tools necessary to help plan participants determine how to spend down accumulated savings in retirement as well as in-plan and out-of-plan options that create streams of income from employer-sponsored retirement plans.
Interestingly, according to the survey, the majority of employers currently prefer lifetime income education and planning tools, and partial or systematic withdrawals during retirement over more effective solutions such as insurance-backed products, annuities or other managed payout options. The survey also found that roughly one-quarter of employers (23 percent) have adopted one or more of these lifetime income solutions, while another 18 percent will either implement a solution this year or consider solutions for next year and beyond.
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