U.S. financial services companies have been spending heavily on efforts to get employers interested in adding lifetime income options to 401(k) plans and other defined contribution retirement plans.
New survey results from the Transamerica Center for Retirement Studies suggest that employers may not be paying much attention.
The center’s latest employer survey report, which is based on a survey of 1,825 U.S. employers that was conducted in late 2018, shows that only about 17% said they “offer an income annuity as a payout option.”
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That 17% annuitization offer rate is unchanged from the annuitization option offer rates the center found when it conducted similar surveys in 2017 and 2018.
The popularity of some education options could be increasing.
In response to the latest survey, 46% of the employer participants said they offer “education about transitioning into retirement” or “seminars about transitioning into retirement.”
That’s up from a combined total of 37% for those two options a year earlier.