As traditional pensions are phased out of the retirement landscape, it’s important to remember the basic features that once made those plans the foundation of retirement security in America: the annual accrual of deferred income, during the working years, that was guaranteed for life during retirement.
The essence of traditional pensions included:
At ANNUA, we believe the accrual, or accumulation, concept of the traditional pension can be applied to lifetime income from defined contribution plans. We are working to transform 401(k)/403(b) plans to include Accumulation Annuities that create pension-like accruals but are backed by highly rated insurance companies, without the financial risks or long-term obligations for the employer. This will help retirees address the myriad of financial risks of a lengthy retirement and provide employers a mechanism for better workforce management.