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401(k) Plans Add Lifetime-Income Options (MarketWatch)

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Some companies are now letting workers invest in annuities, so that their 401(k) savings will eventually yield an income stream. According to research by Aon Hewitt, nearly three in 10 companies currently provide or promote some form of retirement income solutions, either inside or outside their plan. Some 18% of plan sponsors offer an annuity or what are called income option outside of a 401(k) plan and 15% offer an in-plan options, including managed payout funds (offered by 11% of plans), managed accounts with drawdown feature (8%), and annuity within plan (8%).