A research report provides an analysis of how including a default deferred income annuity (DIA) can improve retirement income for retirees and offers suggestions advisers can give 401(k) plan clients for implementing it.
Tag: annuities in defined contribution plans
“ANNUA is challenging the status quo around retirement savings by helping pioneer lifetime income features within 401(k)/403(b) plans at a time when participants are experiencing insufficient account balances and disappearing pensions,” the firm says.
For a small number of plans in which the plan sponsor has decided to no longer allow contributions to the EQUI-VEST variable annuity and to make the AXA Retirement 360 Defined Contribution Program available as an option, AXA is required to file with the SEC to allow transfers.
The most common retirement income solutions defined contribution (DC) plan sponsors reported providing participants were access to a defined benefit (DB) plan and offering a managed account service.
Though they made suggestions for improving lifetime income options for DC retirement plan participants, some who made comments to the ERISA Advisory Council suggested offering in-plan annuities may not be the answer.