As the traditional pension plan slowly fades out of the workplace, it is being replaced by the so-called defined contribution plans, more commonly known as 401(k), 403(b) and 457 plans. The change involves a shifting of investment responsibility from employers to workers.
Not only do workers need to save for retirement, they must find ways to make their savings last for as long as 40 years. To help meet the income needs of retirees, the financial industry has been busily developing products and strategies to help them with the complexities of distributing their savings.
Bankrate's package on retirement income products introduces and explores them in their nascent stages. Some come with guarantees, others do not. Without a doubt, the financial industry will continue to develop innovative new products going forward. Stay tuned.