Income Now

Defined contribution plans such as the 401(k) or 403(b) are replacing traditional pensions as the primary retirement savings vehicle for most American workers.  Since 401(k)/403(b) plans were never conceived to fully support retirement, many structural design changes have evolved over the past decade to address the inherent flaws in the defined contribution system.

Examples include auto enrollment features to cover more workers, auto escalation to facilitate increased savings and target date funds to simplify participant investment decisions.  One critical flaw remains.  Unlike a traditional pension, most 401(k) plans provide no mechanism to guarantee that retirees won’t run out of money in retirement; and many will.

The solution to this problem can be found by incorporating the best feature of a traditional pension into the defined contribution plan; GUARANTEED LIFETIME INCOME OPTIONS.

ANNUA has been working in the retirement plan annuity market for nearly 40 years.  We developed DietrichAnnuity, a Single Premium Immediate Annuity payout feature within a 401(k)/403(b) plan that is driven by our Dietrich Direct Quote system.  Our approach creates a guaranteed lifetime income to help employees better manage the “Financial Risks of a Lengthy Retirement“.

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