Posted by Michael Niciforo and Gursh Jhuty on April 07, 2016.
Will I be able to retire? is a question many employees are asking. More than 85 percent of Americans believe the nation is facing a retirement crisis1 and 72 percent of surveyed employers feel only some employees will be ready for retirement.2 Part of the issue is that many employers who previously sponsored defined benefit (DB) plans (such as pensions) have shifted to defined contribution (DC) plans (such as 401(k)s), putting employees in charge of managing and bearing the risks of investing for their retirement. A new plan design option, Retirement Annuity Accounts (RAAs), helps bridge the gap between traditional DB and DC plans, providing defined benefit features without the investment risk and compliance requirements of a defined benefit plan.
Continue reading “Retirement Annuity Accounts”