Panel of Experts Discuss Annuities in 401k Plans

The use of annuities in 401k plans is an issue receiving quite a bit of attention lately.

Experts, policy makers and industry analysts understand the clear need for guaranteed income options for people who have their savings built-up in 401k plans and individual retirement accounts (IRAs):

“I think one of the top goals of the new (Obama) administration is to find a way to annuitize or at least guarantee or secure some sort of income in retirement,” said Mr. Davies. “That's really the final piece of the DC puzzle.”

The devil is in the details, however, as their appear to be legal and regulatory hurdles:

Annuities as an investment option in defined contribution plans have legal and fiduciary hurdles to overcome before there's any chance they will become commonplace, members of a Pensions & Investments round table warned.

Source: Pensions and Investments

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Something needs to be done......Too much is at stake. Most people don't really even understand what they have in their 401(k) plans. Why not look at some new options for 401(k) participants?