Half of Americans who aren’t yet collecting Social Security are worried about outliving their savings, according to a recent study from SimplyWise. If you share that worry, you might be thrilled to hear that more employers are showing interest in providing annuity-based lifetime income options within their 401(k)s. This would allow you to convert your 401(k) savings into a stream of retirement income that will last as long as you do.
A nonstop source of income might sound like the answer to all of your retirement woes. But don’t start celebrating just yet. Annuities, like anything else, have their advantages and disadvantages. Here’s a look at the pros and cons and how they could add to — or subtract from — your retirement savings efforts.