Summary
Significant changes may come to 401(k) retirement plans in 2026 after Vanguard announced it will include an annuity option. This change could provide more predictable income for retirees, an option that many are starting to prioritize over investments that depend on how markets perform.
Key Facts
- Vanguard plans to add an annuity option to 401(k) plans starting in 2026.
- Annuities provide guaranteed income, which means retirees can receive regular payments.
- Secure income products, like annuities, are becoming popular as they offer financial certainty.
- Annuities are not investments or bank deposits; they are insurance contracts with specific terms.
- Aligning annuities with necessary expenses like housing and healthcare can help manage retirement finances.
- New technology helps advisors plan and model retirement income scenarios.
- Financial advisors emphasize the importance of understanding if annuities are the right choice for individual retirement goals.
