Only 22 percent of employers offer an annuity as a plan distribution option in their employees' defined contribution plans, a recent Watson Wyatt Worldwide survey found. Additionally, 10 percent of sponsors who don't offer an annuity are considering it.

The main reason cited by employers for not offering an annuity was simple lack of demand among participants. Over one-third of employers were scared away by the product's complexity.

Previous research from the firm found that "employees' interest in life payout annuities is strongly influenced by how the pros and cons of longevity insurance are weighed."

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.