(InsuranceNewsNet.com) – Bipartisan legislation to eliminate a barrier preventing lifetime income products as default investment choices in retirement plans was introduced today.
The Lifetime Income for Employees Act, introduced by Rep. Donald Norcross (D-N.J.) and Rep. Tim Walberg (R-Mich.), would allow retirement plan sponsors to use lifetime income solutions as qualified default investment alternatives (QDIA) for a portion of contributions made by participants who have not made investment selections. The Insured Retirement Institute (IRI) supports the legislation.
QDIAs, created by the Pension Protection Act of 2006, have proven to be an essential tool to enhance retirement security by providing retirement savers with the ability to accumulate assets without needing to make underlying investment selections inside of their workplace retirement savings plan.
Paul Richman, IRI Chief Government and Political Affairs Officer said, “This bill would help address the insecurity and anxiety workers and retirees across America are feeling today about their ability to accumulate sufficient savings to provide them with income that will last throughout their retirement years.”
A survey of voters aged 25-plus conducted by the American Association of Retired Persons (AARP) showed that more than six in 10 (63 percent) are anxious about whether they will have enough money saved to live comfortably throughout their retirement years.
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