My colleagues and I are beginning to think seriously about embedding annuities in 401(k) plans.
Now, 401(k) plans generally offer lump sums, which means that retirees have to decide how much to withdraw each year. They face the risk of either spending too quickly and outliving their resources or spending too conservatively and consuming too little. They also must consider how to invest their savings after retirement. These are all difficult decisions.
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Annuities need to be a 401(k) default