One financial services giant is working with another to add a new type of investment to its own employees’ 401(k) plan.
Hartford Financial Services Group Inc., Hartford, says it will be teaming with Fidelity Investments, Boston, the administrator of the Hartford 401(k) plan, to add a Hartford Lifetime Income option starting in early 2009.
Employees will be able to invest in the new lifetime income shares in the same way that they invest in other classes of assets, such as stock funds and bond funds, Hartford says.
The price of the shares will depend on the participant’s age and current interest rates.
Each income share is designed to generate $10 per month of income per life starting when the participant turns 65, Hartford says.
Participants can adjust the income stream start date and move investments in and out of the guaranteed income account, Hartford says.
The insurance company that issues the shares will be responsible for backing the income guarantees.