One way around this problem has always been to buy an annuity that provides guaranteed income for the rest of your life. But, handing over a hundred thousand dollars or more of savings to an insurance company is often psychologically impossible to do. When employers offer retiring workers the chance to buy an immediate annuity at retirement, only 1% take them up on it.

Now, some 401k plans are offering a new choice, known as a 401k annuity where workers can invest a portion of their regular 401k contributions in an annuity that will provide guaranteed income after retirement.

With a 401k annuity, you can invest as much as you want each month or each pay period. As an example, a 40-year-old worker who invests $100 a month in Hartford’s Lifetime Income annuity and retires at age 65 would be eligible for $480 a month in guaranteed income for the rest of his life.

Among the current 401k annuity offerings are fixed and variable annuities. Fixed annuities guarantee a specific amount of income per month for life. Variable annuities base the monthly payments you receive on the performance of an underlying portfolio of stocks and bonds.

If you don’t have a traditional pension, and want to guarantee your retirement income, 401k annuities are worth a look. Conveniently, you don’t have to allocate all of your 401k contributions in one place. You can allocate a portion to to a 401k annuity and the rest to your typical 401k options, thus allowing you to reap the benefits of both growth and guaranteed income when it’s time to enjoy retirement.