Wednesday, July 23, 2014
As I have previously discussed, new regulations were released early this month that established the requirements for longevity annuities to be classified as a qualifying longevity annuity contract (QLAC). One of the goals of the new regulations is to increase the amount of 401(k) accounts that offer longevity annuities, which provide protection for retirees from the dreaded outcome of outliving their retirement fund. However, even with the new regulations, companies may not start offering annuities. A recent survey has shown that 81% out of the 92% of companies that do not offer annuities are unlikely to change that practice.
See Mark Miller, Why Your 401(k) Isn’t Likely to Offer a ‘Longevity Annuity’, Wealth Management, July 22, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.