Report: More pension plans turning to annuities

Many defined-benefit pension plans are frustrated by persistently low interest rates and are preparing to move pension liabilities off their balance sheets, and many of them will use annuities to reach that goal, according to a report by Richard McEvoy of Mercer. "Over the next five to 10 years, we expect to see a shakeout in the corporate pension market, with substantial outflows to insurance and household balance sheets in the forms of annuities written by insurers and participants taking their DB benefit as a cash option," he writes.

Chief Investment Officer magazine online (4/18)