In New Jersey, for example, a teacher can retire at half pay at age 60 with 30 years' experience. Still, many financial advisers think even a generous pension should be supplemented with retirement savings. But they say annuities within a retirement plan are a bad idea. Typically, their returns are lower than you could get in a diversified stock fund. You are usually paying pretty high expenses on it.
Insurance companies defend their sales practices and fees.
If the account's value is less than the amount contributed to the plan at the time of death, the insurance company will make up the difference. Also, insurance companies will take responsibility if an employer's contributions to the plan are miscalculated, causing tax problems. Most important, they say, the extra fee buys professional advice and education. You need direction and guidance and service. Filling a vacuum Insurance companies are happy to rush into the vacuum left by the administrators and unions.