In the Future, the Bias Will Likely Be for Annuities
April 13, 2021 by Rebecca Moore
ALTHOUGH BOTH EMPLOYERS AND THEIR EMPLOYEES see the value of guaranteed lifetime income options, differences appear among 401(k) and 403(b) providers when it comes to retirement plan design, according to a survey by TIAA.
The survey found 403(b) plan sponsors are more likely to see income replacement as the biggest influence on their plan decisions (46% vs. 30% of 401(k) plan sponsors) and to consider the retirement income replacement ratio (41% vs. 21%) and retirement readiness (37% vs. 19%) as key metrics of their plan’s success. 403(b) sponsors (82%) are also more likely than 401(k) sponsors (67%) to believe their participants are extremely/very interested in guaranteed lifetime income annuities.