U.S. Labor Secretary Hilda Solis discussed her top regulatory goals for 2010 in a Webcast on Monday, and increasing public awareness about the need for annuities stood out in her remarks. The Treasury Department has previously signaled that it was considering various options for annuitization within defined contribution retirement plans.
“Increasingly, retirees will have to live on lump sum distributions from 401(k)-type plans,” Solis said. “This increases the likelihood that they will run out of assets during their retirement years. Our goal is to reduce the chance that workers will outlive their retirement by increasing public awareness of the need for annuities, and encourage employers to offer annuities as an option.”