In response to a request for information by the Departments of Treasury and Labor, the National Association for Fixed Annuities (NAFA), Milwaukee, has submitted a report documenting the reasons why fixed annuities are an important tool for retirement planning. The fixed annuity advocacy group noted that fixed annuities are the only products that allow individuals to accumulate retirement savings, protect their savings from declining markets and receive guaranteed income for life.
“The need to be exposed to and understand the value of income opportunities from fixed annuities and their insured guarantees is important to individuals who participate in employer-sponsored retirement plans, as well as the 78 million working Americans who lack access to a workplace retirement plan,” said Kim O’Brien, executive director of NAFA.
The government agencies had a May 3 deadline for requests for information on the possible use of lifetime income products in employer-sponsored retirement programs.
The industry group called on government agencies to encourage product neutrality and to avoid putting limitations on retirement planning, mandating product or plan options, or developing rules and regulation that will limit plan options. It further recommended that the government make fixed annuities more attractive for customers outside of pension plans by providing more education.
Get more information on annuities at www.nafa.com.