Treasury Department Changes Policy on Annuities

A policy change from the U.S. Treasury Department was announced Friday that is intended to encourage the purchase of annuities by those saving for retirement and help prevent the problem of retirees running out of their retirement savings. The policy now allows for long-term deferred annuities to be offered as the default 401(k) investment by retirement funds.

See Jason Lange & Chizu Nomiyama, Washington Tweaks Retirement Fund Policy to Encourage Annuities, Reuters, Oct. 24, 2014.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.