United Technologies Corp. said it has the pension for the 21st century built into its 401(k) plan. It’s called lifetime income, and United is one of the few companies that automatically enrolls workers into the option.
About five years ago, the Connecticut-based aircraft maker reviewed its investment plan options and decided it wanted to offer workers a product that would give them a paycheck for life. The company embedded a lifetime income product into its target-date funds. Participants in these funds would see their assets slowly convert from traditional investments to lifetime income products by the time they hit retirement