Fidelity adds annuity option

Fidelity is offering a new solution, that will allow employees to convert all or a portion of their retirement savings—from a 401(k), 403(b), or 457(b)—into an immediate income annuity.

I will be honest, I will not recommend any of my plan sponsor clients to offer an annuity option. Why? I hate volunteering people to do things and if a plan offers an annuity option, they have to vet the annuity provider and the products being offered.

I want participants to take their money in a lump sum and leave. What they want to do with their money is their business and I don’t want plan sponsors to have more on their plate.

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