Blueprint’s initial challenge as a business, though, is to show that consumers will buy annuities directly—by subscription. About four years into its existence, the startup has placed $10 million to $30 million of insurance premiums across hundreds of consumers, according to Carey. The subscription product became available in beta form late last year, drawing customers from age 32 to age 70.
Blueprint’s larger goal is to get into 401(k) plans and have employers make some, or all, of their matching contributions into annuities, just as Blueprint does. That would create a product similar to a defined benefit plan, lessening the dilemma of how to invest a lump sum from a 401(k). For now, Carey has no illusions about the challenge Americans face in deciding how to invest their savings so they won’t die poor. “In a world where employer pensions don’t exist, you need something that does the same thing,” Carey said. Otherwise, “retirement is going to become a luxury good.”
This article was provided by Bloomberg News.