NU Online News Service, Oct. 28, 2004, 4:15 p.m. EDT
The decline of traditional pension plans has caused many 401(k) investors to roll over their retirement into annuities, a research firm finds.[@@]
With traditional pension plans fading, investors are now creating their own pensions, in a sense, by rolling their 401(k) assets into IRA-based annuities to guarantee lifetime income, according to Spectrem Group, Chicago.
The percentage of 401(k) rollover assets placed in annuities during the 12 months ending in May 2004 quadrupled to 16%, from 4% in 2000, Spectrem found.