In 2025, a quiet revolution is happening inside millions of 401(k)s: annuities are now the fastest-growing plan feature, with 42% of large plans offering them—the highest ever.
New DOL and IRS rules make it easier than ever to turn part of your retirement savings into guaranteed lifetime income that Social Security can’t match.
For most American’s, this means turning market volatility into paycheck certainty. At Davenport & Associates, we help integrate these options into your overall plan.
What are in-plan annuities in 2025? They let you buy guaranteed income directly inside your 401(k) or IRA with no surrender charges. This article explains the surge, the options, and how to decide. Ready for paycheck peace of mind? Read on.
What changed in 2025? Final SECURE 2.0 rules removed old barriers—no more 10–15% surrender fees and portability across jobs. Alight’s 2025 Index shows adoption jumped from 28% to 42% in 12 months.
Why it matters? With bonds yielding less and longevity rising, retirees need income that can’t run out—58% fear outliving savings more than death itself.
Real example: $200K QLAC at 65 can pay a couple $60K+ per year starting at 85—tax-deferred growth for 20 years.
| Pros | Cons |
|---|---|
| Guaranteed income for life | Lower liquidity once purchased |
| No surrender charges | Inflation protection costs extra |
| Stays inside tax-deferred account | Returns may lag stock market |
| Portable across jobs | Spouse/joint options required |
Best fit: 55–70, healthy, $250K+ saved, want to lock in baseline income alongside Social Security.
Strategy we use: Allocate 20–40% of portfolio to annuities, keep the rest growing—covers essentials while growth funds fun.
| Type | Age to Buy | Monthly Income* | Key Benefit |
|---|---|---|---|
| Immediate Annuity | 65–70 | $1,000–$2,000 | Paychecks start now |
| QLAC | 60–70 | Starts at 85 | Defers RMDs + longevity hedge |
| Deferred Income | 55–65 | Starts 70–80 | Higher payout later |
*Example: $200K premium, couple age 65–70, non-qualified estimates
Can I still do a trust? Yes—annuities complement trusts; we integrate both. Cost? No extra fees inside most plans. Our reviews are free.
2025 is the year annuities went mainstream inside retirement plans. Don’t leave this benefit on the table—42% of plans now offer it. Ready to see how much guaranteed income you can lock in? Schedule a free consultation below.