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The Bucket
Tue, May 15, 2012
Brief or late-breaking items from Mercer, The Hartford, ING U.S., Edward Jones, Harris Polls, Nationwide Financial, Woodbine Associates, JPMorgan, Fidelity Investments, and FutureAdvisor.
News
Top five SPIA sellers, 2003-2011
Tue, May 15, 2012
None of the top five sellers of single-premium immediate annuities in 2003 were among the top five in 2011, and SPIA sales have become more concentrated among the top five sellers over the past nine years, according to data from Beacon Research.
Bond funds grew again in April: Morningstar
Mon, May 14, 2012
Domestic stock funds saw net outflows of $9.3 bn and money market funds saw net outflows of $17.3 bn. This story includes a chart of ten mutual fund families with highest net inflows in April and a link to Morningstar's full report.
Quote of the Week
Mon, May 14, 2012
“Money is created in two fundamentally different ways… There is outside money, which is created whenever a government pays for something by making a draft on its central bank or by paying for something with banknotes, and which is extinguished when a payment is made by a member of the public to the government, typically in the form of taxes… On the other hand there is inside money, which is created by commercial banks when they make loans, and which ceases to exist when loans are repaid.” – Wynne Godley and Marc Lavoie, Monetary Economics, 2nd ed., 2012, p. 57.
Soft yen cited as cause of first-quarter losses for Prudential
Tue, May 08, 2012
The company took a pre-tax charge of approximately $1.5 billion from net changes in value relating to foreign currency exchange rates and changes in market value of derivatives.
Working women save two-thirds as much as men: ING
Tue, May 08, 2012
Among those with savings in or outside an employer-sponsored retirement plan, men have saved $149,000, on average, compared to $108,000 in total average savings for women, according to the ING survey.
Nationwide expands variable life and annuity investment lineup
Tue, May 08, 2012
As of May 1, 2012, Nationwide’s investment lineup includes 92 variable annuity investment options and 96 variable life investment options.
Allstate launches indexed annuities
Tue, May 08, 2012
The Allstate "GrowthProtector" is a savings tool and the "IncomeProtector" has a lifetime income benefit with a 7% annual deferral bonus.
Pacific Life licenses Moshe Milevsky’s “RSQ” income planning tool
Tue, May 08, 2012
The tool, which ManuLife, John Hancock and other insurers have licensed, generates a “Retirement Sustainability Quotient” based on a client’s age, current retirement savings and desired retirement income and points to a suitable product allocation.
Quote of the Week
Sun, May 06, 2012
"One of the best uses for low-balance 401(k) accounts is as a 'bridge' to facilitate the deferral of Social Security benefits [in order to a maximize monthly payments]. But that strategy is household-specific and complex for typical participants to implement, so they will need help. Who has an incentive to provide that help? No one! So we must create that incentive." --Jason Scott, director of retirement research, Financial Engines.
Quote of the Week
Tue, May 01, 2012
"Life is really quite stochastic in nature." -- Robert O'Donnell, president, Prudential Annuities, addressing the 2012 Retirement Industry Conference in Orlando, April 26.
Fidelity, USAA, Vanguard are “top of mind” for affluent investors
Tue, May 01, 2012
Other top-of-mind firms include American Funds, Charles Schwab, Franklin Templeton, T. Rowe Price, TD Ameritrade, and TIAA-CREF. Not far behind are Genworth, John Hancock, MassMutual, MetLife, Nationwide, Northwestern Mutual, New York Life, Prudential, The Hartford, and The Principal, said Phoenix Marketing International.
Medicare budget numbers: bad, worse, and confusing
Tue, May 01, 2012
Social Security and Medicare accounted for 36% of federal spending in fiscal 2011, say the program's trustees. Through the mid-2030s, population aging and lower-birth-rate generations entering the workforce will cause costs to grow faster than GDP.
The Bucket
Mon, Apr 30, 2012
Genworth CEO resigns, and other brief or late-breaking news from MetLife, Nationstar, The Hartford, Forethought, Jackson National, Prudential International Investments Advisors, Northwestern Mutual, and National Financial Partners, Pentegra Retirement Services and the U.K. Office of National Statistics.
Debt can make you sick
Mon, Apr 30, 2012
Being in debt can cause stress, and stress can multiply the risk of illnesses as varied as ulcers, depression and heart attacks, the American Psychological Association claims.
Ford to offer pension buy-outs; Towers Watson calls it a ‘first’
Mon, Apr 30, 2012
Ford's intended one-time voluntary lump sum offer to most of its salaried retirees by the end of 2013 "appears to be the first such program to specifically target retirees without being part of a broader plan termination," said Towers Watson.
Chamber of Commerce offers blueprint for private retirement industry
Wed, Apr 25, 2012
America's #1 business cheerleader recommends keeping the tax deferral for long-term savings and removing obstacles to the purchase of longevity insurance (aka long-dated deferred income annuities).
Pressure builds for passive pension management in Ireland
Wed, Apr 25, 2012
The U.S. isn’t the only country where retirement plan fees are coming under unprecedented scrutiny. Take Ireland...
Social Security: A manageable problem
Tue, Apr 24, 2012
If employees and employers each paid 1.34 percentage points more in payroll taxes, starting immediately, everyone who reaches retirement age at least through 2086 would receive the current package of Social Security benefits, according to Alicia Munnell of Boston College.
The Bucket
Tue, Apr 24, 2012
Brief or late-breaking items from National Academy of Social Insurance, New York Life, LPL Financial, Fortigent, BNY Mellon, Investor Analytics, National Exchange Traded Funds Association, and the American Association of Long-Term Care Insurance.
Investment opportunity in China?
Tue, Apr 24, 2012
Western investors shouldn't assume that they have no shot at managing China’s pension assets, according to a news report in IPE.com.
Annuity net flow was flat in March: DTCC
Wed, Apr 18, 2012
Inflows and net flows have increased in each of the first three months of 2012, breaking a declining trend in 2011, but Inflows and net flows were down in the first quarter of 2012 compared to the first quarter of 2011.
How much does asset allocation matter to retirees?
Wed, Apr 18, 2012
“Financial advisers will be of greater help to their clients if they focus on a broad array of tools – including working longer, controlling spending, and taking out a reverse mortgage," says a new paper from the Center for Retirement Research at Boston College.
Despite low rates, bond funds continue to grow
Wed, Apr 18, 2012
Actively managed U.S. large-cap stock funds saw their eleventh straight quarter of net outflows, with $20.9 billion heading to the exits.
16% of Briton retirees will have nothing but state pension: Prudential plc
Wed, Apr 18, 2012
People retiring this year in the Midlands are the most likely in the UK to rely on the State Pension (40%). This compares with a quarter (28%) of those in Scotland.
The Bucket
Tue, Apr 17, 2012
Brief or late-breaking items from Prudential Financial, ARIA Retirement Solutions, Lincoln Financial, Ibbotson Associates, MassMutual Retirement Services, and Nationwide Financial.
The Bucket
Tue, Apr 10, 2012
Brief or late-breaking items regarding Mary Fay, Curian Capital, RIIA, New York Life, Milliman, and Albridge Solutions.
St. Louis Fed president questions U.S. monetary policy
Tue, Apr 10, 2012
"Monetary policy is a blunt instrument which affects the decision-making of everyone in the economy,” said James Ballard, pointing out that low interest rates hurt savers. Better to address unemployment directly than through monetary policy, he added.
‘Pullback from pure DC’ predicted in UK
Tue, Apr 10, 2012
Current DC arrangements in the UK are so inadequate, one official said, that employers will eventually find their workforce dominated by workers in their 70s or 80s who can't retire, and whom employers can't force to retire.
DST, LIMRA form alliance that could spur ‘in-plan’ annuities
Tue, Apr 10, 2012
DST Retirement Solutions recently introduced its Retirement Income Clearing Calculator (RICC) platform, a “middleware” solution that supports guaranteed retirement income products through traditional recordkeeping platforms.
Russell’s “parachute” decumulation strategy
Tue, Apr 10, 2012
The strategy recognizes that most people don’t want to relinquish a big chunk of their liquidity at age 65 and that the SPIA “mortality credit” isn't attractive until the client reaches age 75 or so.
Rising T-bond yields won’t awaken bond bear: Standish
Wed, Apr 04, 2012
Standish's April outlook predicts that 10-year Treasury yields may settle into a new higher trading range between 2.25% and 3% by the end of 2012.
Spectrem Group estimates 2011 retirement assets at $15.374 trillion
Wed, Apr 04, 2012
There's enough savings in retirement plans to pay off the U.S. national debt, with a couple of hundred billion dollars left over. Maybe we should bail out our beleaguered nation and start anew...
The Bucket
Tue, Apr 03, 2012
Brief or late-breaking items from BNY Mellon, LPL Financial, MassMutual Retirement Services, Natixis Global Asset Management, Prudential Retirement, Edward Jones, BMO Global Asset Management, AllianceBernstein and the Insured Retirement Institute.
Solvency II’s discount rate would hurt FTSE 100 pensions: Deloitte survey
Tue, Apr 03, 2012
Using a risk-free rate to estimate pension asset growth would increase pension under-fundedness by 20% to 50%, Deloitte survey shows.
Average retirement age of early Boomers: 58.5
Tue, Apr 03, 2012
65-year-old Boomers won't consider themselves “old” until they reach age 79, according to a new survey by the MetLife Mature Marketing Institute.
GAO recommends task force to promote micro retirement plans
Wed, Mar 28, 2012
Only 14% of small employers--for-profit firms that employ 100 or fewer people--sponsor some type of retirement plan, according to a new GAO report.
A well-financed Seattle start-up aims to spread cheap financial advice
Wed, Mar 28, 2012
“We envision a world where old school financial advisers are obsolete, except for the very wealthy,” said Bo Lu, co-founder of FutureAdvisor.
Fiserv launches ‘Retirement Illustrator’
Wed, Mar 28, 2012
Retirement Illustrator is intended to help advisors present retirement spending requirements and distribution alternatives, accounting for risk events such as withdrawal, longevity, survivor needs and healthcare risks.
Fitch approves of Hartford’s decision to run-off annuities
Wed, Mar 28, 2012
“Over the long term, management's decision to exit more volatile businesses such as variable annuities and individual life should help de-risk the company," said Fitch in a release.
The Bucket
Tue, Mar 27, 2012
Brief or late-breaking items from DST Brokerage Solutions, Broadridge, BNY Mellon, SIGNiX, VERTEX, Allianz Life, the U.S. Treasury Department, Nataxis Global Investment Management, EBRI, Financial Executives International and Allianz Global Investors.
A.M. Best places Hartford’s ratings under review
Thu, Mar 22, 2012
The Hartford will place its individual annuity business into run-off effective April 27, 2012, A.M. Best said, and is pursuing other options for certain product lines within its Wealth Management segment, including sales or other strategic alternatives.
The direct channel is growing: Cerulli
Thu, Mar 22, 2012
Cerulli predicts the direct market will grow to close to $5 trillion and will control close to 10% of retail managed accounts assets by 2014, equating to $380 billion.
Advisors, investors talk past each other, says Russell report
Thu, Mar 22, 2012
Advisors say that clients’ return expectations for 2012 are slightly higher than their own: 4.3% for a conservative portfolio, 6.5% for a balanced one and 9.3% for an aggressive one.
Uniform fiduciary standard will require new technology: Citi
Thu, Mar 22, 2012
“Financial advisors can expect significant technological and operational challenges to adhere to any new fiduciary standards,” said a co-author of a new whitepaper.
Millionaire ranks grew by 200,000 in 2011
Thu, Mar 22, 2012
The total millionaire population in the U.S. has climbed to 8.6 million households, but remains below the pre-recession high in 2007 of 9.2 million.
Fidelity identifies a group of older clients averaging $360k in retirement accounts
Wed, Mar 14, 2012
Fidelity reviewed users of either or both IRAs and 401(k)s within its customer base, and came up with average balances overall and among clients in the 65-69 age bracket.
Few active managers beat indices: S&P
Wed, Mar 14, 2012
In the two true bear markets the SPIVA Scorecard has tracked over the last decade, most active equity managers failed to beat their benchmarks, Standard & Poor's said.
The Bucket
Wed, Mar 14, 2012
Brief or late-breaking items from Athene, Prudential Financial and T. Rowe Price.
Jackson reports record net income of $683m in 2011
Wed, Mar 14, 2012
An indirect wholly owned subsidiary of Britain’s Prudential plc, Jackson generated a record $22.9 billion in total sales and deposits, up 16% over 2010. Retail net flows also increased 11% over 2010 to a record $13.6 billion, the company said in a release.
