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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