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Few DC plan sponsors turn to annuities

The main reason cited by employers for not offering an annuity was simple lack of demand among participants.

By Danielle Andrus | Updated on December 23, 2009

Only 22 percent of employers offer an annuity as a plan distribution option in their employees’ defined contribution plans, a recent Watson Wyatt Worldwide survey found. Additionally, 10 percent of sponsors who don’t offer an annuity are considering it.

The main reason cited by employers for not offering an annuity was simple lack of demand among participants. Over one-third of employers were scared away by the product’s complexity.

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