Forty-one percent of respondents that offer or are considering offering a lifetime income solution are considering adding an in-plan asset allocation option with a guaranteed minimum withdrawal or annuity component in 2021 or later, the report said. Thirty-one percent are considering adding an in-plan deferred annuity investment option and 23% are considering adopting out-of-plan annuities at the time of retirement.
“It’s disappointing relatively few have adopted what the industry sees as more effective income-generating solutions, such as annuities and other insurance-backed products," Hildebrandt said. "However, employer interest in these options may pick up steam as they better understand the value and associated benefits."
The survey, released on Wednesday, was conducted in May and June.