Annuities? Interest Is Growing


As employers across the country continue looking for ways to support the financial wellness of workers, interest in annuities is growing. In fact, a recent Blackrock survey found that 82% of plan sponsors are likely to add an annuity solution in the year ahead.

 Guaranteed Lifetime Income

The financial well-being of workers is a rising priority in companies of all sizes. Experts remind us that retirement plans are in many ways “the best-developed financial wellness benefit” available and plan designs are being updated to reflect new needs and interests—and a growing range of product possibilities. Plan Sponsor reports that more workers are interested in guaranteed lifetime income products:

Surveying just over 1,000 defined contribution (DC) plan participants, the 2021 BlackRock DC Pulse Survey finds that 89% of participants are interested in owning a product designed to generate retirement income, and almost nine in 10 believe that having guaranteed income in retirement would have a positive impact on their financial wellbeing.

 Interest among Millennial participants was strong—94% stated they are interested in owning a product designed specifically to generate retirement income, while 89% of Gen Xers and 83% of Baby Boomers shared the same interest.

 The growth in awareness hasn’t only applied to working participants—retirees are recognizing its benefits, too. Of 311 retiree respondents, 76% noted how owning a guaranteed lifetime income product made a bigger difference than they originally believed, while 78% believed they would have benefited from a guaranteed income product if offered to them. Ninety-six percent of plan sponsors also revealed an added sense of responsibility in offering these products, and 82% say they are likely to add an annuity solution in the next 12 months.


Plan Ahead—and Protect Too!

Retirement plan sponsors of course have many important obligations—all centered on insuring the plan benefits the participants. As The Society for Human Resource Management reminds us: Being thoughtful about plan design can dramatically improve employees’ chances of accumulating wealth and achieving a secure retirement. As you investigate design updates, such as adding an annuity option, that will best benefit your participants, be sure you also update the protection plan for your business, the retirement plan—and yourself. Retirement plan sponsors make many decisions—what if you make a mistake and face allegations of a fiduciary breach?

Indeed, any individual involved in the management of a retirement plan can face personal exposure for breach of a fiduciary duty. Even allegations of a fiduciary breach can divert attention and resources from your work—and life.  For example, if you suddenly needed an attorney with ERISA expertise, you would likely pay upwards of $600—per hour! Ouch! Avoid this possibility—and a lot of other stress—with Colonial Surety Company’s affordable Fiduciary Liability insurance.

 Available with a complete ERISA Bond Package, a whole year of Fiduciary Liability coverage is less than what you’d pay for one hour with that lawyer if a crisis hits. Plus, Colonial’s 2 and 3 year packages also includes Cyber Liability coverage to protect your business and retirement plan in the event of a cyber breach.

Remember: the required ERISA bond protects the assets of the retirement plan from theft; Fiduciary Liability coverage protects you and your assets from personal liability; and, Cyber Liability coverage  can safeguard your company and plan from covered losses and expenses in the event of a cyber breach.

With Colonial, you can easily and affordably secure this complete coverage package now: ERISA Bond Package With Fiduciary Liability Coverage

Colonial Surety Company is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed and in business all across the country.