Barriers to Guaranteed Lifetime Income Options
Today, Americans are living longer than ever and underestimating their longevity, with many living 20 to 30 years after they retire. Seniors need the income protection that annuities and other insurance products provide.
Only life insurers deliver income guarantees through annuities that address longevity—the risk of outliving your retirement savings. These guarantees are not available from any other financial services companies.
Yet, a new proposed fiduciary rule from the Department of Labor (DOL) would severely restrict access to information and education about annuities—curtailing families’ ability to secure their financial futures with guaranteed lifetime income.
The new proposed fiduciary rule would discourage retirement plan providers from discussing guaranteed lifetime income options with consumers.
Continued access to information and education on guaranteed lifetime income products has been a bipartisan, bicameral priority for Congress as well as the current Administration.
Absent changes, the new proposed fiduciary proposal will have the adverse effect—if financial services providers face greater risks and uncertainties, workers will find fewer opportunities to learn more about, and gain access to, guaranteed lifetime income options.
Small Businesses Hit The Hardest
The DOL fiduciary rule negatively impacts small plan formation by limiting sales activities that encourage small business owners (with 100 employees or less) to start up, maintain, or improve their employee benefit plans. The DOL has limited the “sales exception” to exempt certain large plans, while impeding the sales of products and services to small businesses.
Life insurers are leading providers in the small plan formation marketplace and are concerned that this proposal would impede the important policy goal of expanding small plan coverage—an urgent goal shared by federal and state policymakers alike.
Ask your Members of Congress to co-sponsor legislation to fix the fiduciary regulation. Take action now.