Annuity options are growing in 401(k)s, but adoption remains limited

76% of workplace plan participants surveyed by BlackRock believe their generation will have less certainty about retirement income than previous generations, the highest concern in 5 years. 90% want income options in workplace plans. Major firms (BlackRock, Fidelity, JP Morgan, Vanguard, TIAA) are expanding annuities in 401(k) plans to address pension demise, Social Security solvency worries, and stock market volatility. Annuity options are included in target-date funds that shift to conservative assets as retirement approaches.

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You're not locking into any annuity; you invest in lifetime income units that track the future cost of income. It's a fixed income investment, fully liquid. At a certain age you can choose to buy the annuity if it's right for you.

The product structure allows flexibility and liquidity, deferring the annuity purchase decision until the retiree is ready.

New AI tools help workers estimate how much income they will need in retirement, check if they're on track, and evaluate strategies for turning savings into predictable income.

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