The Aspen Institute

As Americans live longer and increasingly rely on 401(k) plan savings as a prominent source of income in retirement, they will need to find ways to convert their savings into income that lasts a lifetime. Because the financial situations and goals of American savers are diverse, they will need a variety of products and services to secure their income. The Aspen Institute Initiative on Financial Security has developed “Security Plus Annuities,” a proposal that partners private industry with the Social Security Administration to offer low-cost, inflation-protected, “starter” life annuities. Security Plus Annuities would offer all Americans the ability to achieve greater financial security in retirement and would provide immediate assistance to two groups of Americans who have critical unmet needs for longevity-protected products: low- and moderate-income workers who frequently have not had access to a 401(k) plan at work, and near retirees whose work-based plans don’t currently offer lifetime income products.