Thursday, April 08, 2010
Momentum Builds for Annuities in 401(k) Plans
The Obama administration recently came out in favor of annuities, but so far, only a handful of large employers offer this option.
More retirement think tanks are getting on board with the idea of including annuities in 401(k) plans, but so far, only a handful of large employers have this as an option.
“They are complicated,” explains Alicia Munnell, director of the Center for Retirement Research at Boston College. “And [if] you hand over a bunch of your hard-earned cash and go out on the street and get hit by a bus, it’s gone.”
Furthermore, investors are afraid an insurance carrier could go out of business, and plan sponsors don’t like the administrative headache of switching annuity investments when workers change jobs, added Robyn Credico, a consultant with Towers Watson...
INN: Momentum Builds for Annuities in 401(k) Plans
More retirement think tanks are getting on board with the idea of including annuities in 401(k) plans, but so far, only a handful of large employers have this as an option.
“They are complicated,” explains Alicia Munnell, director of the Center for Retirement Research at Boston College. “And [if] you hand over a bunch of your hard-earned cash and go out on the street and get hit by a bus, it’s gone.”
Furthermore, investors are afraid an insurance carrier could go out of business, and plan sponsors don’t like the administrative headache of switching annuity investments when workers change jobs, added Robyn Credico, a consultant with Towers Watson...
INN: Momentum Builds for Annuities in 401(k) Plans
Permalink posted by markw @ 4:51 AM 
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