The Principal Financial Group has put together a guide on group immediate annuities for plan sponsors. Even though almost two-thirds of employees turn to employers for planning advice at retirement, only 37% of plan sponsors offer such guidance, according to LIMRA International.
"This educational tool provides valuable tips on using income annuities to meet the needs of retirees without adding burdensome costs and administrative headaches to company-sponsored retirement plans," said Chris Mayer, vice president of institutional annuities - retirement & investor services.
"Bridging the Income Gap with Annuities - A Plan Sponsor's Guide" is a 12-page brochure that explains the advantages of income annuities (and group pricing) for employees. Principal dispels the top five myths about income annuities, that they: are poor investments with high fees; eliminate control; provide no inflation protection; cause loss of residual value; and are tough for plan sponsors to offer and administer.
Group immediate annuities benefit from lower costs and group mortality factors, ultimately resulting in higher payouts for customers.