Use of annuities seen as an effective way to lock-in guaranteed income for retirees. Mandatory participation through private sector plans is suggested. Hybrid 401(k)s with built-in annuity options are one possible vehicle.
"We also need to consider a new tier of retirement income… The goal of this additional tier would be to replace about 20 percent of pre-retirement income. To accomplish the goal, participation should be mandatory, participants should have no access to money before retirement, and benefits should be paid as annuities. The system should be funded and reside as much as possible in the private sector."
Source: U.S. News & World Report
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