New Lifetime Annuities in 401(k) Plans Could Cut Advisors Out of the Picture
January 4, 2022 by Lewis Braham
One of the primary reasons many retirees seek out financial advice is to convert their savings into a steady stream of income that can support their current lifestyles for the rest of their days.
That’s why, to some advisors, the news this November that State Street Global Advisors launched a deferred lifetime income annuity within the University of California’s retirement plan could seem unsettling. That retirement plan has $35 billion in assets that advisors might not be able to manage if its 300,000 participants decide to keep their money in the plan’s annuity after they retire.