To help alleviate retirees’ biggest concern that they will run out of money in retirement, two of the world’s largest retirement plan providers, State Street Global Advisors and Fidelity, are developing a new variation of the 401(k) that will mimic a traditional pension, according to an article published by ConsumerAffairs.

The product being developed would allow an investor to convert their savings into an annuity that provides a steady payout over their lifetime. State Street and its partners, Global Trust Company and Annexus Retirement Solutions, said this new option will help “promote growth opportunity and permit liquidity and portability,” before and after income activation.

ConsumerAffairs referred to an article recently published by the Wall Street Journal that Fidelity could release its product next year.

Congress passed legislation in 2019 to allow 401(k) accounts to include annuities but this is the first indication that companies are taking advantage of it. Read more.