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Annuitizing while still working? 401k should be a financial vehicle to grow over the long haul while working, not generate (presumably unrealized) income before retirement. Seems like this is in the same bad category as taking out a loan from your 401k, which can significantly harm long term growth.

And "locking in" an annuity prior to retirement? Unless this "secure income" is annually adjusted for inflation, the value of the annuity will be steadily eroded before you've even retired, much less be able to meaningfully support a 30-year retirement. The insurance industry stopped offering inflation-adjusted annuities around 2018 because the industry decided they couldn't (or weren't willing to) afford them, so I doubt that's what's being considered now.

Besides, folks with healthy 401ks and the like are already far better positioned to financially support retirement. And that's not even accounting for the costs and fees and fine print that will be involved, like mentioned above. There are times and circumstances when annuitizing can be worthwhile, and folks can already partially annuitize tax deferred accounts. Is there really a compelling need case here?

This doesn't make any sense to me. Seems like a gift to the insurance industry.