The number of employers planning to offer annuities to participants in their 401(k) plans is expected to grow, according to a survey by Watson Wyatt Worldwide Inc.
The interest in annuities comes as companies look for ways to provide workers with a steady distribution of benefits after they retire, according to WWW, Arlington, Va., a consulting firm.
WWW notes its findings come on the heels of an statement by the U.S. Department of Labor that it will explore ways to persuade employers to offer lifetime annuities or similar distribution choices in their defined contribution plans.
WWW found that 22% of employers that sponsor 401(k) and other DC plans currently offer an annuity as a distribution option, and 10% of those that don’t offer one are considering adding it.