401(k) plans are the dominant form of retirement savings in the private sector with 79 million active participants and $6.8 trillion in assets1. While these plans provide a means to accumulate retirement savings, the typical 401(k) is not designed to disburse savings as consistent monthly income guaranteed for a retiree’s lifetime.
Nuveen, in collaboration with the TIAA Institute, fielded a survey of more than 2,100 401(k) participants to gain their perspectives on converting retirement savings to retirement income, including the value of in-plan annuities.
Positive sentiments about in-plan annuities are more common among 401(k) participants who expect their plan and any other retirement savings to be a major source of income in retirement compared with peers who expect this to be a minor income source. They more often view the inclusion of an in-plan fixed annuity as very valuable, and they tend to have greater interest in using a fixed annuity for both saving money for retirement and withdrawing money in retirement. This is noteworthy because as the 401(k) system moves into its fifth decade, an ever-increasing number of individuals will enter retirement after spending significant portions of their work life participating in these plans.
Participants have favorable views of lifetime income and in-plan annuities
Dive deeper into 3 key findings
