According to a new Towers Watson survey, corporations are giving more attention to lifetime income options like annuities.

Almost 20% of employers in the U.S. currently offer annuities or plan to offer it this year or next.

With a shift in Employers of America, continuing away from traditional defined benefit plans and toward account based plans like 401(k), annuities, and other distribution designs can provide a steady stream of retirement income. This helps retirees’ nest eggs to last through their entire lifetimes.

President Barack Obama has promoted annuity insurance as an effective tool for retirement and savings. But there is a tax in the health care reconciliation bill that imposes a 3.8 percent tax on annuity insurance purchased by high income earners.

The tax goes into effect in 2013 will cost consumers $210 billion over 10 years. The tax is sending the wrong message to Americans and could hurt the sales of annuity insurance.

The tax is on the unearned income Medicare contribution. It taxes the nonqualified annuity payouts, interest and rental income, dividends and capital gains of couples earning more than $250,000, or singles with more than $200,000.

Annuity insurance bought through a qualified retirement plan offered by employers would be exempt.