About 93% of employers are very likely or likely to “create or broaden focus on financial well-being of employees beyond retirement” this year, according to an Aon Hewitt survey. Yet the focus for many employers will not extend to including annuities or other similar lifetime income products as investment options in defined-contribution [e.g., 401(k)] plans.

Aon Hewitt says seven Americans are reaching age 65 every minute. Given this, it is not surprising that nearly three-quarters of plan sponsors will experience an increase in retirement-eligible employees over the next three years. In response, 52% of employers say they are very likely and 38% say they are likely to offer retirement planning to near-retirees. Slightly more than half (51%) are very likely and 38% are likely to increase communication about the retirement process. Online modeling tools and mobile apps designed to help employees determine how much they will be able to spend in retirement may be made available by 53% of employers (“moderately likely action”), with 17% seeming more certain about providing them (“very likely action”).

When it comes to adding retirement income products, employers are less willing to make changes. Only about one of four plan sponsors (26%) say they are either very likely or likely to offer annuity or insurance products as part of the investment options offered. Even fewer (12%) plan to add qualified longevity annuities, products that delay the stream of income until a pre-specified age.

The biggest reasons why are operation or administrative concerns and a desire to see the market for such products evolve more. Each was cited as a major barrier by 43% of respondents. Fiduciary concerns and participant utilization concerns were cited as major barriers by 38% and 37% of respondents, respectively.

Among other initiatives planned by employers, 34% are planning to change fund options to reduce costs. About 30% of employers say they will move mutual funds to institutional funds and/or separately managed accounts.

Source: “2015 Hot Topics in Retirement,” Aon Hewitt.