The Obama Administration wants to know just how useful annuities can be in beefing up the savings and income for those retiring and planning for retirement. The ACLI (American Council of Life Insurers) has issued recommendations to the Obama Administration for retirement policies. They are pushing for guaranteed income as part of employer-based retirement options and that limited tax incentives be used to encourage the use of annuities.
Annuities are the Key
Pensions are becoming a thing of the past, and with the limited contributions allowed in IRAs, 401(k) options, etc., and the limitations of social security benefits, an annuity can be the key to saving for retirement and ensuring future income and benefits. The ACLI says they do not think that mandating fixed annuities is the best idea; they are more interested in seeing that this is simply an offer that is always on the table for those who want to invest in an annuity. Annuities offer tax-deferred savings with no cap on contributions, padding future retirement savings and income.
The Future of Annuities
In February of this year (2010), the U.S. Departments of Labor and the Treasury began asking for public input on the subject of annuities as a part of retirement plan offerings. They were interested in looking into the benefits and costs of distributing and guaranteed continued income for life after retirement as well as lump sum payments and what kind of information and options need to be available to those in the workforce so that they can make the decision that is right for them.
The ACLI has released information from a study conducted among the general public. The study involves workers views on retirement options and whether or not they would like for their employers to offer information on products for guaranteed income, such as annuities. This study found that 90% of respondents in this study were definitely interested in having this option to choose from.
Annuities are already popular, though not something everyone knows much about. Perhaps with the downfall of pensions and the limitations we are seeing with other retirement options, annuities will become the next big thing for all American workers.
