WINDSOR, Conn., May 6, 2010— To assist the federal government as it examines the role that guaranteed lifetime income options can play in workplace retirement plans, LIMRA provided relevant information and industry data as part of its response to the request for information (RFI) issued by the departments of Treasury and Labor.
On Feb. 1, the departments of Treasury and Labor issued the RFI seeking input on ways to help retirees meet a growing challenge: how to convert savings from 401(k) plans or similar plans into a guaranteed stream of lifetime income.
“LIMRA has 94 years of comprehensive, independent and objective research that can provide the facts policymakers need as they determine how to promote retirement security for American workers,” said Robert Kerzner, president and CEO of LIMRA, LOMA and LL Global. “With 3 million Americans retiring this year and even more in each of the coming years—it is important that any decisions our government makes are informed ones.”
LIMRA’s studies have found that more than 80 percent of consumers consider having a lifetime income stream as very important of which two-thirds think it’s critical. Yet only 20 percent planned to use annuities as a source for retirement income.
In addition, LIMRA research shows that many consumers are not aware of all their retirement income options in their current retirement plan and therefore make decisions based on incomplete facts. LIMRA has also found that only 30 percent of plan sponsors offer lifetime income education to help consumer understand their choices. Without this knowledge and understanding, these flawed decisions are critical factors that prevent Americans to effectively plan for retirement.
LIMRA’s submission consists of fact-based research, which answered specific questions asked by the federal government in the RFI.
LIMRA is a worldwide research, consulting and professional development organization that helps more than 850 insurance and financial services companies in 73 countries increase their marketing and distribution effectiveness. Visit LIMRA at www.limra.com.