Let’s hope this legislation moves forward. Every retiree needs an annuity income

Have you heard of the Retirement and Enhancement and Savings Act?

The bill would make it easier for workers to guarantee their annual income by requiring plans to disclose the amount of monthly annuity income participants could expect to get based on their account balance.

It would also encourage 401(k) plans to offer annuities by providing certain legal protections that currently don’t exist.

Ending work with a large 401k balance is highly desirable and so is the lump sum it represents. Very few workers are willing to use it all or even a part of the total to purchase a life annuity. The argument is understandable. What if I die shortly after I retire and all the money is lost?

On the other hand, the more likely scenario is you will live twenty or more years and during that period you must manage your lump sum to keep it growing, so you keep up with inflation and don’t out live your money.

Adding annuities to 401k plans is an important change we need.


  1. PS had MetLife talk to us before we retired. If you liked what they said; they met with us privately after. I got their Lifetime guaranteed income payout annuity. He also worked in a deal to pay off my big debts as I retired and then when that ends; it comes to me. I have gone to investment meetings with a bunch of other companies and have learned I have a good one. My 401K was converted right before I left to this policy. I can’t wait for 2020 to come along now. I also can obtain a higher figure, I earn interest. I know there are some plans that you really have to be careful on. You need a good, honest, educated broker to go thru it all for you. But if their companies offer meetings like this and they don’t go; it’s there loss not the company. My girlfriend’s husband retired from Merck’s. he doesn’t hear well and never listened. So he didn’t go to any pre retirement meetings and they were at a loss when he left, even medical.


  2. No, it isn’t. No we don’t need to add complex annuities within a plan as they are suboptimal, at least for males (unisex), and compliance problems (REACT compliance)

    All the annuities you want are available – just Ask.


      1. Annuities quality are inversely proportional to the the size of the salesman’s commission.

        Forturely, I was able to stop my 85 year old mother-in-law from buying one with restrictions for the first 10 years. The average person may like the security that an annuity offers but they do not understand the details.

        I think back at how my 401K started offering direct buying of stocks and how some of my co-workers started chasing individual stocks instead of staying in index funds. Most did not end well. I believe most average people will end up with bad annuities because the salesman will put their commissions first, not the investor’s best interest.


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