Simplifying Lifetime Income in 401(k) Plans: A Practical Approach for Advisors
For decades, 401(k) plans have helped Americans build retirement savings, but they’ve fallen short on one critical front: converting those savings into dependable income for life. Defined contribution plans have evolved to use defaults to ensure consistent savings, but workers are too often on their own when it comes to figuring out how to make their savings last through retirement.
This is a concern that over half of both Baby Boomers and Gen-Xers express, according to ALI’s 2025 PRIP study. Though we consistently hear that people want guaranteed income, many don’t know much about annuities in the first place, much less how to purchase one on their own. While many individuals do buy annuities, a huge gap remains, particularly among those who don’t work with a financial advisor.