“The risk that retirees will outlive their assets is a growing challenge”

The Labor Department early next year plans to propose rules on how retirement plan statements should show the benefits that a stream of income can offer a retiree, compared with taking a single lump-sum payment. The Treasury Department plans to offer guidance before the end of the year on how plan sponsors can educate participants about annuities without crossing the line into providing investment advice, officials said. 

The government is hoping that its upcoming support for lifetime-income solutions such as annuities will encourage companies to add these options to their retirement plans for employees, but some worry that Uncle Sam isn't giving a big-enough push. 

The efforts are part of the government's overall goal to curb the number of individuals who are likely to outlive their retirement savings as people live longer and are more dependent on defined-contribution plans, where employees direct their investments. Companies mostly have stopped offering defined-benefit plans, which promise retirees a defined monthly payment.
The need for a solution is great. About 47% of Americans born between 1948 and 1954 are at risk of being unable to afford basic expenses and uninsured health care costs through retirement, according to the Employee Benefit Research Institute. 

This information is not intended as legal or accounting advise and is not meant as a recommendation.