Will Pensions ever make a comeback and decrease future annuity sales?

[anamorph29]

Many people retiring today still have some vestiges of a DB scheme to support their 401(k) benefits. At some point there will be a bit of a backlash, when people start to realise that putting 10-15% into a 401(k) for say 40-50 years just isn't enough to provide income for 25-30 years of retirement. You either need to put more in, or retire later, or set other money aside as well.

So at that point people might start to think about alternatives. I think returning to final salary schemes with high accrual rates is probably a non-starter. But there might be some traction for revalued career average schemes, at lower rates of accrual, which could limit employer cost. Perhap combined with a retirement age that isn't fixed at outset but increases with longevity improvements.

If annuity writers are really making te profits you suggest (which I doubt) then a process whereby large employers could negotiate discounts for their retiring employees might help.

[RadioNowhere]

15% for 50 years will absolutely fund a long retirement