With 80m Americans in the post-second world war baby boom starting to reach retirement age, the US defined contribution pensions industry is taking a closer look at how to convert pension savings to an income stream that will last a lifetime.

The most straightforward solution is traditional annuities providing a guaranteed income for life, either in fixed payments or indexed for inflation. But annuities are insurance products, and therefore do not fit well in the framework of US mass-market investments. A few innovators, however, are working to win over both plan sponsors and insurance companies.