Roger Wohlner, a CFP licensee in Chicago, questioned the fees that go along with managing the annuities, fees that can currently work against the interests of participants, an issue Rosenthal also brought up.
But perhaps the biggest problem for retirees is psychological. Faced with the largest windfall of their lives, they're reluctant to leave money on the table. They fear if they die early, all that money that could have gone to heirs goes to waste. Of course, that's the way any insurance product works: Those who die young help pay for the retirements of those who live longer. Whatever the perception, the increasing national conversation about seniors' extended life and retirement shortfalls, as wel as annuities within defined contribution plans, is sure to continue.
-Matt Greco