The most critical factor for getting employees to consider purchasing annuities into 401(k) plans is having advisors on site at the workplace, according to a study by Cerulli Associates released Tuesday, April 2.

The Cerulli Edge, the quarterly retirement analysis, found that that only 40 percent of 401(k) plans allow advisors in the workplace.

This presents a prime opportunity to advisors because of the confusing nature of annuities.

“Offering advice at the work site can be an effective strategy that encourages participants to not only think about annuities, but also consider all of the options available to them,” the report indicates.

A provision of the Pension Protection Act of 2006 directs the Department of Labor to clear up the regulations for including annuity options within 401(k) plans.

Once this occurs, Cerulli analysts believe it will open up the window to include more annuities inside 401(k) plans.

Filed by Lisa Shidler of Investment News, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.