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Advocacy group urges government to include annuities in 401(k) packages 2010-04-30 An annuities advocacy group wrote a 41-page letter to the Treasury and Labor Departments urging them to provide annuity options in employer-sponsored 401(k) plans, Investment News reports. The Insured Retirement Institute calls on the two departments to provide incentives to employers that will encourage them to incorporate annuity options in traditional pension plans. The IRI also supports educating employees on annuity plans and how they can benefit retirement income. "When you consider the retirement reality in America, defined by the unsure footing of Social Security, the near disappearance of pension plans and the record losses in 401(k) plans, it is clear that Americans planning for retirement must have a second form of guaranteed income," IRI chief executive Cathy Weatherford wrote in the letter. Annuities give participants the option to invest a lump sum of income, which will be delivered to the participant in monthly payments at a later date. Annuities may be a popular option for seniors who want the comfort of receiving a steady flow of income during their retirement.  |
