Guaranteed-income annuities may appear inside Lincoln 401(k)s; But costs could raise fiduciary concerns, one critic says.(News)

Investment News, October, 2006

Byline: Lisa Shidler CHICAGO - Lincoln Financial Group is closely investigating the possibility of including guaranteed-income annuities inside its 401(k) plans, following the recent creation of similar products, as the industry scrambles to help consumers secure guaranteed income when they retire.

But there are some pitfalls to placing annuities inside 401(k)s, including potential fiduciary conflicts related to the costs of the option, according to one critic. Philadelphia-based Lincoln recently launched a pilot program in four undisclosed locations where insurance and retirement advisers will offer combined education and training programs to plan sponsors. Advisers will also begin to do more cross-selling of insurance and 401(k) products,...

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