Why Business Owners Should Pay Attention to Growing Interest in Annuities

A recent article from InvestmentNews points to a clear shift in retirement plan preferences: employees want more security in retirement — and they’re looking to their employer-sponsored plans to find it.

According to the Allianz Center for the Future of Retirement, 70% of plan participants would consider an annuity option if it were available through their workplace plan. That’s not just a data point — it’s a conversation starter for business owners and plan sponsors.

So what does this mean for you?

Your Employees Are Thinking Long-Term, and Want Their Plans to Think Long-Term Too

Annuities are gaining attention because they offer something employees crave: predictable income in retirement. As inflation, market volatility, and longevity risk grow more pressing, traditional 401(k) plans — even well-structured ones — may feel incomplete to today’s workforce.

Employees are asking: Will my savings last?

As a business owner, you should be asking: Does our retirement plan address that concern?

Time to Revisit Plan Design Conversations

This trend presents a smart opportunity to ask strategic questions such as:

• Are annuities a viable option within our current plan structure?

• How would we evaluate different annuity providers or products if we wanted to explore that?

• What are the fiduciary considerations when offering annuity options?

• Can we educate our employees on what annuities are — and aren’t?

Even if you’re not ready to implement annuities, these questions open the door to valuable plan design conversations focused on long-term employee outcomes.

Aligning Plan Features with Employee Priorities

For small and mid-sized business owners especially, offering a retirement plan that reflects your values and supports your team’s future is more than a benefit — it’s a differentiator.

As interest in guaranteed income grows, exploring solutions like annuities — or even beginning a conversation about them — can show your employees that you’re listening and evolving your plan accordingly.

How TPAs Can Help

At Robin S. Weingasts and Associates, Inc., we help businesses like yours navigate these plan design decisions with clarity and confidence. Whether you’re weighing the pros and cons of adding new features or just looking to ask the right questions, we’re here to provide the insights and support you need.

The retirement landscape is changing. Let’s make sure your plan keeps pace.