Should Your Employer Default You Into an Annuity?
Written by Jasmin Sethi for SCA client, Morningstar.
Congress has been devoting a lot more attention to annuities lately--and with good reason. As discussed in a recent Morningstar paper, some annuities that we call GIPs, or guaranteed income products, fill a role that is sorely lacking in the retirement investment catalog: They supplement Social Security by providing stable streams of income during retirement. With more stable sources of income, retirees can spend money throughout their retirement without worrying that their resources will someday run dry.