Annuity options slowly enter 401(k) plans but remain a tiny fraction of retirement assets

Summary

Annuity options are slowly becoming available in some 401(k) retirement plans, typically embedded within target-date funds. These options allow older workers to convert a lump sum into guaranteed lifetime income or withdraw a set percentage annually. However, adoption remains very limited — described as "a drop in the ocean" of total 401(k) assets — despite growing worker concerns about outliving their retirement savings and the need for reliable income streams in retirement.

Source

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