(JD Supra) - There has been a push to add annuities to retirement plans, but I don’t see it gaining ground.
According to Alight, plan sponsors are hesitant to add it, which was part of the 2019 SECURE Act.
Alight’s data showed that among plan sponsors, 47% cite fiduciary concerns as a major reason for not adding annuities. 44% of plan sponsors are waiting to see how the market evolves, and an equal percentage cite difficulty with participant communication. 38% of plan sponsors blame operational or administrative concerns, and 32% cite participant use concerns as major reasons for abstaining from annuities.
Only 12% of plan sponsors have annuities in their defined contribution plan, 3% are very interested in annuities for the plan, 35% are moderately interested and 51% are not at all interested in annuities in their defined contribution plan.
By Ary Rosenbaum - The Rosenbaum Law Firm P.C.
February 7, 2023
