New research from the non-profit Employee Benefit Research Institute shows qualified longevity annuity contracts have the potential to significantly increase some 401(k) participants’ retirement readiness.
And that potential will only increase as interest rate rise, which would make longevity annuities cheaper for retirement savers, according to analysts at EBRI.
Last year, the U.S. Treasury Department issued guidance allowing 401(k) participants to move up to 25 percent of plan assets, or a maximum of $125,000, into a longevity annuity that begins paying benefits at age 80 or 85.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
