In-Plan Benefits Could Boost Life Income Annuities at Non-Profits
April 24, 2017 by Jay Cooper
Lifetime income annuities could be poised to find a home in more not-for-profit industry retirement plans, but annuity providers will need to dispel common objections to the products. Annuity providers would also be well served to show not-for-profits how current default investment options misalign with their employees’ intentions.
The biggest concern for not-for-profit plan sponsors is that their employees will delay retirement because they don’t have enough money. Sixty-four percent of respondents in a TIAA-sponsored survey of the market cited this concern. Also, 59% say they are concerned their employees will run out of money in retirement. Those issues far outweigh concerns about meeting responsibilities as a plan fiduciary (38%), despite fiduciary responsibility coming under regulatory crosshairs in the last two years.
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