Do women need guaranteed retirement income products?

Sen. Amy Klobuchar wants to enhance women’s financial security via the Paycheck Fairness Act she is co-sponsoring. Sen. Amy Klobuchar wants to enhance women’s financial security via the Paycheck Fairness Act she is co-sponsoring.

The idea that workplace retirement accounts should offer annuity-like guaranteed income streams to help women compensate for lower earnings and a great life expectancies relative to men is a good one. Judging from recent surveys on employee workplace benefits, the recommendation should be well received — and not just by women. According to a July 2013 Biannual DC Investor Survey published by State Street Global Advisors, 8 in 10 participants in an employer-sponsored defined contribution plan would forgo other plan payout features to secure a guaranteed monthly income.

—Warren S. Hersch
Lower lifetime earnings and longer life expectancies put women at a disadvantage when it comes to a secure retirement.

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