Make it stretch

July 2008
Employee Benefit News;Jul2008, Vol. 22 Issue 9, p51
The article discusses the advantages of purchasing an annuity rather than obtaining a lump-sum distribution. Experts contend that employers need to notch up their retirement education message to emphasize asset decumulation, in which annuities are seen as playing a critical role. The disadvantages of using an annuity are the associated fees and the chance that the retiree could die earlier than expected before receiving the full amount. Some plan sponsors offer an annuity as an accumulation option within the defined contribution (DC) plan.


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