Gradual interest in lifetime income
Interest in lifetime income options is slowly increasing, with 15% of employers wanting to add a non-guaranteed lifetime income option this year, and nearly 10% of employers planning to incorporate annuities to their plans in 2025.
Despite the gradual rise, over half (53%) of employers still say they are not interested in non-guaranteed income options in their DC plans. When asked why, top apprehensions include fiduciary concerns (49%), operational or administrative concerns (48%), difficulty with participant communication (40%), and cost barriers (26%).
Another 43% say they are not interested in annuities in DC plans, either because of operational or administrative concerns (51%), fiduciary concerns (48%), difficulty with participant communication (46%), and cost barriers (25%), among others.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
