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401 (k) plan participants worry that they will outlive their retirement income Those advisors reported that, on average, 10% of their plans are actively considering adding a retirement income solution and 4% are exploring incorporating an income component into their qdia. Studies show that a large percentage of 401 (k) participants (a recent survey by nuveen and tiaa put that percentage at 93%) think it is important for their plans to provide lifetime income options such as annuities.
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Having the option of converting workplace retirement plan savings into lifetime income is essential, according to 93% of 401 (k) holders surveyed by nuveen, the investment manager of tiaa,. Interest is slowly increasing, however Most americans want guaranteed income for life, but few retirees use their 401 (k) plan as a source of lifetime income
When asked in 2021, fewer than six in 10 workers said that their employers had a responsibility to provide access to lifetime income in retirement
In fact, the survey found that about 90% of. Although 93% of 401 (k) participants say it’s important for their plans to provide lifetime income options like annuities, most plans still only offer lump sum distributions. Research shows though that for plan participants, a guaranteed lifetime income in retirement is a significantly larger concern and could be used to motivate recruitment, retention and allow employees to retire on time. About 35,500 401 (k) plans offer guaranteed lifetime income solutions (or more commonly known as annuities), representing only 4 percent of plans
The reason, at least according to prudential, is that many plan sponsors have assumed there would be very little interest from employees. For example, according to one study conducted by nuveen, 70% of plan participants would prefer to work for a company that offered lifetime income solutions, and 50% of plan sponsors were thinking about adding these options to their plans.