A growing number of U.S. employers are adding lifetime income solutions to their defined contribution (DC) retirement plans, according to the 2019 Lifetime Income Solutions Survey by Willis Towers Watson.
While I know the marketplace and the Department of Labor are considering adding annuities to DC plans. For me, it’s a pause for concern because of the role of insurance products in retirement plans. Insurance in retirement plans is like eating red meat, nothing wrong in moderation, but not many people will take that advice. Many insurance agents are more interested in the commissions and less interest in the relationship and my concern is that there will be some high-cost annuity products making its way into retirement plans. Just my two cents.