Today 401k plans are replacing defined benefit pension plans as the primary retirement plan structure for many employers. Outliving assets in retirement is a major concern for employees. Of equal concern for employers is that employees can’t financially afford to retire at normal retirement age which is a major cost to them.
Dietrich can provide solutions for both employers and their employees by adding a lifetime annuity income option to the 401k plan.
For employees who want to purchase an additional life income benefit with a portion of their 401k plan accumulated assets, they can opt to do so by purchasing a life income annuity that Dietrich can provide through an institutionally priced group annuity contract.
For employers who wish to allocate a portion of their 401k contribution toward a lifetime income benefit in order to supplement an employee’s social security retirement benefit, Dietrich can show plan sponsors how to use contributions to incrementally fund a life income over the career life of their employee, allowing the employee to feel confident that they will have additional guaranteed income to last their (and their spouses) a lifetime.