Lifetime Income Disclosure Act Would Help Boost Retirement Security

WASHINGTON, April 6 -- The American Council of Life Insurers issued the following news release:

The American Council of Life Insurers (ACLI) supports the Lifetime Income Disclosure Act (S. 868) introduced today in the U.S. Senate and House of Representatives. The legislation would give workers an important new information resource to help them boost their retirement security.

"American workers need additional education about their retirement savings and how those savings translate into monthly income. This legislation will ensure workers receive this crucial information," said ACLI President and CEO Dirk Kempthorne.

Under the legislation, participants in private-sector workplace retirement plans would receive an annual statement sharing how their lump-sum savings translates into a guaranteed lifetime stream of monthly income from an annuity. This vital information would make it easier for workers to understand how their savings will address their month-to-month living expenses.

"With this key information, workers can make wise decisions about retirement and retirement savings. Most workers recognize the need to accumulate retirement assets, but many may not think about the need to manage their assets and withdrawals over the course of a retirement that could last 30 years or longer. By showing what a lump sum really means in terms of paying the monthly bills, the legislation will help countless workers improve their long-term retirement planning," Gov. Kempthorne said.

The legislation was introduced by Senators Johnny Isakson (R-Ga.) and Christopher Murphy (D-Conn.) and Representatives Luke Messer (R-Ind.) and Mark Pocan (D-Wis.). ACLI thanks the sponsors for their efforts to boost Americans' retirement security.

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with approximately 290 member companies operating in the United States and abroad. ACLI advocates in federal, state, and international forums for public policy that supports the industry marketplace and the 75 million American families that rely on life insurers' products for financial and retirement security. ACLI members offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance, representing more than representing 94 percent of industry assets, 93 percent of life insurance premiums, and 97 percent of annuity considerations in the United States. Learn more at www.acli.com.