Annuities might be coming to your 401(k) plan. Here’s what you need to know

Annuities might be coming to your 401(k) plan. Here’s what you need to know

Retirement savers could start seeing annuities in their 401(k) plans. While allowing them in workplace retirement savings plans is not new, the 2019 Secure Act aimed to eliminate companies' fear of legal liability if the annuity provider were to fail or otherwise not meet its obligations. Now, insurance companies, asset managers and employers are moving toward making these guaranteed lifetime income options more broadly available through 401(k) and other defined contribution plans. "The Secure Act is definitely the catalyst for the activity we're seeing now coming from annuity providers as well as retirement plan providers," said Paul Richman, chief government and political affairs officer at the Insured Retirement Institute. "Come 2022, you're going to really start seeing these in retirement plans," Richman said. The general goal is to address concerns that retirees won't have enough income to cover their expenses over the course of their golden years. Roughly half of retirement savers worry they'll outlive their savings, and 42% worry about covering daily living expenses when they retire, according to a . A man reaching age 65 today can expect to live, on average, until age 84, according to the Social Security Administration. For a woman, the average age is