Retirement plan sponsors are unclear or uncomfortable about the fiduciary implications of annuity offerings.
Even as workers seek ways to make their retirement savings provide income for the duration of their retirements, employers are hesitant to add annuities as options to 401(k) plans.
A report from the Society for Human Resource Management cites the low adoption rate of annuities in retirement plans, with only 8.9 percent of plan sponsors taking any action to incorporate them as a 401(k) option, according to institutional investment consultancy Callan's 2018 Defined Contribution Trends report. It also highlights a range of reasons plan sponsors provide as hindrances to the adoption of annuity options.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
