Employer Interest in Annuitization Options Holds Steady: Transamerica Center
October 8, 2019 by Allison Bell
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.”
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.