02.10.20
Annuities Are Heading to 401(k)s
by: Emile Hallez
The SECURE Act provided a gateway to get annuities into 401(k)s, and many plans could begin to incorporate those insurance products as soon as this year. The new, wide-ranging legislation will lead to substantial changes in the private sector retirement savings system, including several provisions that could affect how workers view retirement income and annuities. “In the past 30 to 60 days we’ve seen a ton of interest from advisors — and to some extent plan sponsors — on retirement income, in a way we haven’t seen in years,” said Jonathan Kreider, senior vice president and head of Great-West Investments. Currently, annuities are seldom included as options within 401(k)s. “Even where we see plans that have annuitization options for participants, it’s a very low uptake,” said Keri Dogan, a senior vice president at Fidelity. But, she said, “there has been more interest among sponsors to better support these participants as they move from accumulation to decumulation.”
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