American Council of Life Insurers (ACLI) is praising an Obama Administration initiative to bolster retirement security. ACLI President and CEO Frank Keating said the plan would help Americans prepare for a secure retirement.

“In addition to proposals to increase savings through the workplace, the President’s plan also calls for promoting the availability of annuities that can turn savings into guaranteed lifetime income,” Keating said. “President Obama’s initiative recognizes a key challenge to Americans’ retirement security—how to manage savings to last a lifetime.”

Keating said the initiatives would help protect retirees from outliving their savings.

“The decline of defined benefit plans and emergence of defined contribution plans, such as 401(k)s, has shifted responsibility for managing savings from the employer to the individual,” Keating said. “In addition, Americans are living longer than ever before, and as a result retirees need to make their savings last 20, 30 years or more. By converting a portion of their retirement savings into an annuity, retirees can have the assurance of a guaranteed stream of income for life.”

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