Only one-in-three workers under age 35 are eligible for a traditional pension benefit, and just 8% of workers expect such a pension to be their main source of financial security. What might look like a retirement disaster could actually be a blessing in disguise. Big employers have started looking for ways employees can turn their 401(k)s into options that guarantee income for life. The 2012 BlackRock Retirement Survey found one in five employers expect to introduce an annuity option in the next 12 months. “It is important for savers to have some form of guaranteed income to prevent them from running out of money,” said Catherine Collinson, president of the Transamerica Center for Retirement Studies.

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