Life insurance companies have a lot of excitement over the new rules from the U.S. Treasury and Labor Departments. After calling for information in 2010 regarding the lifetime income options in retirement, the Departments finally have some rules in place to make it easier to choose annuities through your workplace retirement plan. According to Insurance News Net’s “New federal proposals will make annuities more available to workers,” a few changes will help Americans ensure a secure financial future in retirement.
First of all, some of the issues making it difficult for retirement plans to offer annuity options have been eliminated. It is now much easier for employees to use part of their company retirement savings to get guaranteed lifetime income from annuities. The American Council of Life Insurers (ACLI) applauds the government’s work to ensure that Americans are not outliving their savings and facing a financial nightmare when they are vulnerable late in retirement.
Also, the DOL Rule will take effect on July 1 of this year. This rule mandates that service providers give uniform information about their products and services to employers. Now the benefits and fees associated with the retirement plans will be easily accessible to employers and employees trying to decide what to do with their retirement plans upon retirement. Life insurers offering annuities to retirees give such a wealth of benefits; it’s important for both companies and employees to understand all that is offered.
Written by Rachel Summit
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