The most recent UAW/GM contract included a big increase in the company contribution to your 401k. It’s true that a defined benefit pension with it’s guaranteed income for life was a goal that was out of reach this cycle. However, a income for life annutity option was negotiated. The best part? You can choose how much of your retirement plan to invest in the annuity and the rest of your funds. Mix it up for safety or be aggressive with your investments.
Hueler explains that users can choose when they want their lifetime income to begin, and the technology seeks to ensure that the user is given the right type of contract, such as a single premium immediate annuity offering a guaranteed stream of income. Users can also select to whom the annuity is designed to benefit, themselves or a partner or spouse. In addition, participants can decide the amount of money they want to annuitize, with a minimum of $10,000.
( free graphic via clipartmax.com)
