(WWLP) – A law passed back in 2019 is about to add some new data to your regular 401K report and economists say it might be a shocking revelation.
The “Lifetime Income Illustration” will appear on your next quarterly statement. It’s a figure showing how your lump-sum retirement savings would look as monthly income part of an effort by lawmakers to help people prepare for the reality of living off of savings.
The Lifetime Income Illustration will show how your current level of 401k savings would look as monthly income spread over the rest of your life, starting at age 67.
It will not include savings outside of your 401K and doesn’t project future 401K savings. Economists say it will be a wake-up call for many.