Despite their popularity, there's a significant problem with most 401(k) and other defined contribution plans: They simply hand employees a check when they retire, then wave good-bye and good luck. Retirees are then on their own when it comes to figuring out how to use that money to generate a retirement income that will last the rest of their lives.

This is a serious challenge, and most workers don't have the skills or training to do this properly on their own. What's concerning is that the majority of people overestimate how much they can safely withdraw each year so they don't outlive their money with the natural result being that they'll run out of money before they die. 

While some people consult financial advisors to help them with this challenge, many advisors aren't adequately trained in all the possible ways people can generate retirement income.