February 4, 2023

Annuities could qualify as default investment in 401k plans:

A handful of bills are being added to the 2019 Secure Act, to build upon it. Lawmakers are considering a proposal to let 401(k) plans include annuities as a “default” investment option.
“People have anxiety about running out of money in retirement, so this would be an option to alleviate that anxiety and give them a stream of income … while still retaining the other portion of their investment savings,” said Dan Zielinski, the spokesperson for the Insured Retirement Institute. However, lack of liquidity could be a hindrance. It is still important for savers to invest alongside annuities.

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