Life Insurance Quotes

401(k) plans providing lifelong savings options

06/28/11


Baby boomers' growing fears about financial solvency in retirement have led 401(k) companies to develop products that will help transform savings into a retirement safety net, according to USA Today. These new plans, known as retirement income or guaranteed income, are add-ons to traditional 401(k) policies.

These plans are not readily available by all employers and only 24 percent of companies have added them, a BlackRock survey found. The small percentage of companies that are offering help to generate a secure income stream into retirement usually do so through an annuity or annuity rider.

The 'Shifting Focus: From Retirement Savings to Retirement Income' survey reports that more than 90 percent of participants want more guidance on how to make sure their money lasts through retirement. Some experts believe retirement income strategies are appealing to people that do not have enough money to hire a personal investment adviser, the media outlet reports.

"I want something that is close to automatic pilot," Michael Waggoner, who lives in Boulder, Colorado, told the news source. "I have read that one's financial acuity may decline with age." 

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