Retirement plan participants need more information about strategies for making retirement assets last, LIMRA has told federal regulators.
LIMRA, Windsor, Conn., discusses its views on lifetime income education in a response to an income planning request for information issued by the U.S. Treasury Department and the U.S. Labor Department.
Federal regulators asked for advice about use of annuitization and other mechanisms for converting retirement savings into lifetime income streams.
Only 30% of the employers that sponsor 401(k) plans and other retirement plans give participants much advice about income planning, LIMRA says in its comment.
About 80% of the consumers who participate in LIMRA surveys say having a lifetime income stream is very important, but, perhaps because of the lack of education, only 20% are planning to use annuities to generate a lifetime income stream, LIMRA says.