RSS 2.0 Feed
Editorial Staff
Could Uncle Sam Guarantee a 5% Return for Life?
Fri, Mar 27, 2009
In a new report, authors at the Center for Retirement Research at Boston College (CRR) attempt to calculate how much it might cost to give American workers guaranteed an attractive long-term return on retirement savings invested in the stock market over a lifetime.
Study Assesses Market for “Unbundled” Living Benefits
Fri, Mar 27, 2009
“Guaranteed Retirement Income Beyond Annuities,” a new white paper from Annuity Insight, a unit of Strategic Insight, Inc., offers a 137-page, 50-exhibit analysis of Standalone Living Benefits (SALBs), which are lifetime withdrawal riders unbundled from annuities and applied to select mutual fund or ETF portfolios.
Build a Ladder of SPIVAs
Fri, Mar 27, 2009
A new research paper, published in the February 2009 issue of the Journal of Pension Economic and Finance shows that retirees can work around that liquidity problem by transferring assets incrementally from non-annuity accounts to single premium income variable annuities (SPIVAs) in retirement and by adjusting the asset allocation of both types of accounts to suit personal risk tolerances.
Conning Predicts Life Annuity Rebound By 2010
Fri, Mar 27, 2009
Individual annuity net premiums are expected to grow to $225.2 billion in 2010 from $188.5 billion in 2007.
EIA Trade Group To March Against Rule 151A
Wed, Apr 08, 2009
“The annuity industry is at a boiling point,” says NAFA executive vice president Kim O’Brien. She invited insurance producers to attend NAFA’s annual meeting and join in a “March to Capitol Hill" in Washington on May 6-8, 2009.
The Sage of Omaha Says GLWBs Were “Crazy”
Tue, Jun 02, 2009
“If you buy a [VA] policy, you the policyholder get some of the upside, and [the insurers] guarantee you always get your premium back.” From a company’s perspective, “that’s poison,” Warren Buffett was quoted as saying.
VAs with No More Shelf Life
Thu, May 21, 2009
A list of recently discontinued variable annuity contracts. Source: Milliman.
Without Golden, Will MassMutual’s RMA Lose Its Glow?
Thu, May 21, 2009
Jerry Golden has retired from Mass Mutual, leaving uncertainty over the future of the Retirement Management Account. MassMutual says the RMA, a tool for building income annuity ladders, "remains available."
EIAs Work Best During Worst Markets
Mon, Jun 01, 2009
“Selling guarantees is like smoking Cuban cigars while driving a dynamite truck. You better do it carefully,” a Journal of Financial Planning article observes.
Fixed Products Lift JNL’s Annuity Sales By 8% in 1Q 2009
Wed, May 20, 2009
Thanks to an 81% year-over-year increase in fixed annuity sales, Jackson National Life generated $2.6 billion in annuity sales in the first quarter of 2009, up 8% over the same period in 2008.
ALDAs Make the Most Sense: Financial Engines
Tue, Jun 02, 2009
Life annuities will be more popular when offered at a discount well before the income start date, the authors argue.
LIMRA Releases First Quarter Annuity Data
Tue, Jun 02, 2009
Sales of variable annuities experienced their fourth quarter of double-digit declines, dropping 27% compared to the first quarter of 2008.
Inflation-Adjusted Income Annuities Pay Off, Study Asserts
Tue, Jun 02, 2009
People who assume 3% average inflation—a common standard—when planning for retirement may have far less purchasing power in retirement than they anticipated, says Felix Schirripa.
Symetra Solves An RMD Problem
Tue, Jun 02, 2009
Longevity insurance has been tough to sell, partly because of conflicts with Required Minimum Distribution rules. But Symetra says it has overcome that hurdle with its enhanced Freedom Income Annuity.
Deschenes Goes To Sun Life from MassMutual
Wed, Jun 10, 2009
Former MassMutual retirement income executive Stephen L. Deschenes will manage the annuities division at the U.S. division of Sun Life Financial.
Financial Engines To Personalize Advice for 401(k) Participants
Wed, Jun 10, 2009
Financial Engines' Retirement Plan is “a personalized statement” that gives “401(k) participants a comprehensive roadmap” to retirement.
Hope for a Comfortable Retirement Has Sunk to a 16-Year Low
Tue, Jun 09, 2009
Even among workers with $100,000 or more in savings and investments, only 26% were very confident about retirement in 2009, down from 35% in 2008.
Hancock Offers Lifetime Income with a Cheap, Simple A-Share VA
Tue, Jun 09, 2009
John Hancock has launched a low-cost A-share variable annuity with a simplified lifetime income guarantee. The company hopes it will appeal to a broad swath of worried, retirement-bound Baby Boomers.
Milliman Study Recommends Ways to De-Risk VA Living Benefits
Wed, Jun 10, 2009
A new report from Milliman recommends ways that variable annuity issuers can simplify their living benefits to minimize a potential increase in reserves when "VACARVM" kicks in later this year.
Quincy Krosby Joins Prudential Annuities as Chief Market Strategist
Mon, Jun 15, 2009
Quincy Krosby, a former Assistant Secretary of Commerce and U.S. representative to the International Monetary Fund, has joined Prudential Annuities in the newly created position of chief market strategist.
Cost-Cutting by Broker-Dealers and RIAs Creates Opportunities for FundQuest
Tue, Jun 16, 2009
Difficult economic conditions have spurred broker-dealers to outsource some of the functions that they once provided internally, said David Robinson, managing director of national accounts at FundQuest.
In Helping Clients Plan for Retirement, Advisors Focus on Process, Not Product
Mon, Jun 15, 2009
For top advisors, retirement income planning involves a step by step process; it's not about picking the right annuity or right mutual fund, says consultant Howard Schneider.
Selling to Seniors Is Different, New Study Shows
Tue, Jun 16, 2009
If given enough time to deliberate, seniors are no more risk-averse or conservative than young adults, according to research by Advantage Compendium's Jack Marrion.
Top 15-year Fixed Annuity Rate Falls Slightly
Tue, Jun 16, 2009
Beacon Research has released the names of the top-yielding certificate-type fixed annuities, as of June 15, 2009. The effective yield of Protective Life's 15-year ProSaver Platinum fell to 5.25% from 5.45% over the prior two weeks.
For Many, Bear Market May Delay Retirement
Tue, Jun 23, 2009
The decline in the value of their 401(k) accounts was cited by 76% of workers aged 50 to 64 as the most important reason they plan to postpone retirement.
Technology Aims To Detect Style Drift in Target-Date Funds
Tue, Jun 23, 2009
UAT, Inc., a Denver-based technology firm, created a fund monitoring system that can help retirement plan sponsors find out if the sub-advisors of target-date funds in their plans are engaging in style-drift.
CPAs Tell All About Their HNW Clients
Mon, Jun 22, 2009
A survey of top CPAs reveals that the wealthy are watching their pennies because of the recession. The survey also reveals the financial advice that accountants are giving their HNW clients.
Roger W. Crandall to Succeed Stuart H. Reese as MassMutual CEO
Tue, Jun 23, 2009
Roger W. Crandall will succeed Stuart H. Reese as CEO of MassMutual, effective Jan. 1, 2010.
Laurence J. Kotlikoff Wins RIIA’s Top Award
Tue, Jun 30, 2009
Kotlikoff will receive the award at RIIA's annual meeting and awards dinner, October 5-6, 2009, at the Hyatt Harborside Hotel in Boston.
Lincoln Financial Restructures Its Retirement Efforts
Tue, Jun 30, 2009
The Institutional Retirement Solutions Distribution group, headed by Garry Spence, will no longer be part of the Retirement Solution Distribution organization.
How Stable Are Your Stable Value Funds?
Tue, Jun 30, 2009
"In today's unpredictable market environment, even the 'safest' investments carry considerable risks," the global consulting firm said.
P&A Group Targets Fee-Based Plan Advisors
Tue, Jun 30, 2009
A unit of the Buffalo, NY-based firm has partnered with the CIF Marketplace to supplement their mutual fund and ETF product base with collective investment funds (CIFs).
More Portfolio Managers Say the Market Has Bottomed
Mon, Jun 29, 2009
Over 80% of investors surveyed expect the S&P 500 Index to reach 1200 by the end of 2011, and almost one-quarter expect it to return to 1500 by then.
Does Employer-Based Health Care Get a Free Ride?
Wed, Aug 26, 2009
'If all premiums were taxed as income, you’d get quite a disruption,' said an Urban Institute analyst.
Four New VA Filings Reported by Beacon Research
Wed, Aug 26, 2009
The Hartford, MetLife Investors USA, and AXA Equitable have new variable annuity contracts.
Sun Life Launches “De-Risked” Living Benefit Riders
Wed, Aug 26, 2009
The rider fees are higher and age-thresholds for higher payout rates are adjusted upward.
How America Can Cut Its Medical Bills By $1 Trillion
Wed, Aug 26, 2009
Americans in their early 50s have twice the hypertension, obesity, and diabetes rates as Europeans.
Employers Not Responsible for Retiree Income, Most Plan Advisers Say
Wed, Jul 08, 2009
“A mutual funds/fixed annuity combination” and “variable annuities with a guaranteed minimum withdrawal benefit” were the “most attractive” options for retirement income planning/distribution.
Eight Join Advisory Board at American College’s New York Life Center for Retirement Income
Wed, Jul 08, 2009
The Center, directed by Kenn Beam Tacchino, JD, offers technical knowledge to financial advisors and agents in matters related to the retirement decisions facing clients.
Fitch Downgrades Nationwide Mutual to “A”
Tue, Jul 07, 2009
VA writers like Nationwide continue to be under pressure from the decline in equity market values, which have required additional general account reserves to cover guarantees, Fitch said.
Got Anger? ShareOwners.Org Cites Investor Indignation
Wed, Jul 08, 2009
ShareOwners.org wants stronger regulation of the securities industry, increased accountability of corporate boards and CEOs, greater financial transparency and protection of the legal rights of investors.
Future of VAs a ‘Wildcard,’ Conning Says
Wed, Jul 08, 2009
“We'll have to see how this market plays out,” said Terence Martin, vice president of insurance research at Hartford-based Conning Research and Consulting.
Top-Yielding Certificate-Type Fixed Annuities
Sun, Jul 05, 2009
Effective yields ranged from 1.75% for a two-year contract with a one-year bonus to 5.25% for a 10-year contract.
AIG Reported in Talks to Sell Alico to MetLife
Wed, Jul 15, 2009
The sticking point in previous talks between AIG and MetLife was price. AIG reportedly demanded $20 billion, which was more than MetLife was willing to pay.
Feds Weigh Need for More Oversight of Stable Value Funds
Wed, Jul 15, 2009
The ERISA Advisory Council will look into the adequacy of disclosures to participants about stable value funds, and review the possible designation of stable value funds as QDIAs in 401(k) plans.
Proposed Watchdog Agency May Cross State, Federal Jurisdictions
Wed, Jul 15, 2009
Under the proposed Consumer Financial Protection Agency Act of 2009, the new agency would regulate the 14,000 investment advisory firms overseen by state securities regulators.
Michael Jackson Windfall for Dutch Pension Fund
Wed, Jul 15, 2009
The burst of interest in the pop legend's music following his unexpected death has benefited owners of his songs, including ABP, the world's third largest pension fund.
“Free-Lunch” Seminars Still Baiting Seniors
Wed, Jul 15, 2009
This time, indexed annuity sellers were not among the accused.
Fixed Annuity News Reported By Beacon Research
Wed, Jul 15, 2009
Average credited rates for 5-year, CD-type/rate-for-term annuities in Beacon's Fixed Annuity Index were 3.45% in April, 3.21% in May and 3.16% in June.
Richards To Leave SEC Compliance Post
Wed, Jul 15, 2009
Lori A. Richards will depart as director of the SEC's Office of Compliance Inspections and Examinations. Associate Director-Chief Counsel John Walsh will serve as Acting Director.
New York Life's Top Ratings Affirmed by Rating Agencies
Fri, Jun 19, 2009
New York Life Insurance Company announced that all four of the major rating agencies have recently affirmed the company’s highest possible ratings for financial strength.
Insecurity Grows Among Retirees
Wed, Jul 22, 2009
LIMRA's survey shows an increase in the numbers of retirees who feel they need a personal financial advisor.
Massive Drop in 300 Large Company Pension Funds: Towers Perrin
Wed, Jul 22, 2009
In fiscal 2008, the combined funds of the companies in the TP 300 fell from a $47 billion surplus to a $339 billion shortfall.
Crisis Investigators Appointed
Wed, Jul 22, 2009
Brooksley Born, who warned about the impending crisis while head of the Commodities Futures Trading Commission, is among the sleuths.
NAVA Becomes “Insured Retirement Institute”
Tue, Jul 21, 2009
NAVA's rebranding effort began last October, when Cathy Weatherford replaced Mark Mackey as the trade group's CEO and president.
Interest Rates To Stay Very Low: Bernanke
Tue, Jul 21, 2009
But 'Helicopter Ben' said the Fed will take steps to avoid inflation, if necessary.
PIMCO Expects Erosion in Value of U.S. Dollar
Wed, Jul 22, 2009
In its third-quarter market outlook report, the fixed-income giant shares its strategy for this year and beyond.
VA Rider Hedging Has Been 94% Effective—Milliman
Wed, Aug 05, 2009
The financial crisis has prompted VA writers to reevaluate their entire risk management strategies and become more self-reliant, the Seattle-based consultants say.
Social Security Tax Base Shrinks as Upper Incomes Grow
Wed, Jul 29, 2009
Compensation that isn't subject to the portion of payroll tax that funds old age benefits now represents foregone revenue of $115 billion a year.
Goldman Sachs Eyes DC Market
Tue, Jul 28, 2009
“We've been in the retirement business for 20 years managing defined benefit assets, but are now really ramping up our DC effort,” a Goldman executive said.
Nationwide Adds Annuity Option to Morgan Stanley UMAs
Wed, Jul 29, 2009
Morgan Stanley Smith Barney has launched Select Retirement, which adds an optional Nationwide Life Insurance fixed income annuity option to the Select unified management account program.
The Hartford Continues to Shed Jobs
Wed, Jul 29, 2009
“The reductions reflect the need to realign our expenses with the reduced volume of business that we have experienced in our investment products business, particularly variable annuities,” a Hartford Life spokesman said.
Target-Date Funds ‘At a Crossroads,’ Cerulli Says
Wed, Jul 29, 2009
While more than 70% of asset managers say they've just begun to tap the target-date fund opportunity, a small but growing percentage think the phenomenon may have peaked.
Obesity Linked to Retirement Insecurity
Wed, Aug 05, 2009
Per capita medical spending for the obese is $1,429 higher per year, or roughly 42% higher, than for someone of normal weight, a new research study claims.
MetLife Posts Strong Annuity Growth in 2Q 2009
Wed, Aug 05, 2009
MetLife's annuity net flows remained positive for the fifth consecutive quarter while lapse rates declined for the second quarter in a row.
Lincoln Financial Group Rebounds in Second Quarter
Wed, Aug 05, 2009
At $2.6 billion, overall annuity deposits were down 23% from the second quarter of 2008 but up by 20% from the first quarter of 2009.
Its Technology Eases Hedging of GLB Riders, UAT Claims
Wed, Aug 12, 2009
The firm said its real-time portfolio statistics could help insurers preserve GLB features in their products.
Prudential Net Income Turns Positive in 2Q 2009
Wed, Aug 12, 2009
The firm's individual annuity sales boomed in the second quarter, thanks in part to a wave of exchanges of variable annuity contracts from financially weaker insurers.
Securities America, Wealth2K Help Advisors Fight “Big Brands”
Wed, Aug 12, 2009
To compete, "advisors must introduce high-end, high-impact communications tools,” said David Macchia of Wealth2k.
Cirque du Soleil to Help Burnish Sun Life Brand
Wed, Aug 12, 2009
The U.S. unit of the Canadian insurer has also hired the ad agency that created Geico's Gekko and Caveman campaigns.
Impaired Risk Annuities Sell Well in the U.K.
Wed, Aug 19, 2009
The popularity of enhanced annuities—which provide bigger payouts for those with adverse medical conditions—is likely to grow, consultants said.
More Large Employers to Restore 401(k) Matches
Wed, Aug 19, 2009
But many employees still face smaller raises, lower bonuses and higher health care costs, a Watson Wyatt analyst said.
Cerulli Report Reveals Investor Concerns
Wed, Aug 19, 2009
From August to December of 2008, the number of households describing themselves as conservative investors jumped to 32% from 25%.
Index Annuities Set Quarterly Sales Record
Wed, Aug 19, 2009
“Never has there been a more challenging period for those selling indexed annuities,” said Sheryl J. Moore, president and CEO of AnnuitySpecs.com.
John Hancock Issues New MVA Fixed Annuity
Wed, Aug 19, 2009
Investors can choose either a 3-, 5-, 7-or 10-year period with a matching withdrawal charge schedule.
Who Is the Typical SPIA Buyer?
Tue, Nov 30, 2010
The average age at purchase for an immediate annuity is 73. The average immediate annuity premium was just over $107,000.
Putnam adapts ‘Absolute Return 500 Fund’ for VAs
Wed, Feb 23, 2011
Putnam Investments launched four Absolute Return Funds in January 2009 that aimed to match the returns of short-term securities, bonds, balanced funds and stocks, respectively, but with less risk.
‘New generation’ VAs proposed for Australians
Wed, Feb 23, 2011
The Australian government should try to deal with longevity risk by developing a “new generation variable annuities market,” according to the Institute of Actuaries of Australia.
Innovative Two-Stage Income Annuity Proposed
Wed, Sep 09, 2009
The payout from Phoenix's Retirement Income Options variable income annuity is life-contingent and variable during the "early retirement" stage, but pays a fixed income with a death benefit during the optional "later retirement" stage.
Forgetful Elderly Should Own Income Annuities: Harvard Study
Wed, Sep 09, 2009
“People don't know what to do with their money in general,” one advisor told Pensions and Investments. “It may get worse the older you get, but really this is a problem for all workers.”
Even a Mild Windfall, Apparently, Can Kill You
Tue, Sep 15, 2009
Two economists have documented an increase in fatal heart attacks, strokes and traffic accidents shortly after the receipt of money, such as monthly Social Security checks.
All Signs Point to an Aging Work Force
Wed, Sep 09, 2009
Nearly four-in-ten adults who have worked past the median retirement age of 62 told Pew Research that they delayed their retirement “because of current economic conditions.”
Many Nurses Need Help With Retirement Planning
Wed, Sep 16, 2009
Nurses tend to distrust “outsiders,” but most indicated they would attend a free, unbiased financial planning workshop sponsored by a professional nursing organization.
Obama Announces Workplace Savings Initiatives
Wed, Sep 09, 2009
The president told Americans, “If you work hard your whole life, you ought to have every opportunity to retire with dignity and financial security."
NewRiver Upgrades Compliance-Facilitating Solution for Variable Products
Wed, Sep 23, 2009
Variable Products Express Version 2.0 allows providers to take advantage of web-based delivery of summary prospectuses without sending contract owners to other websites for information.
Obama Addresses Wall Street A Year After Lehman Brothers’ Collapse
Wed, Sep 16, 2009
The president gave Masters of the Universe a judicious scolding.
InFRE Retirement Certification Wins Accreditation
Wed, Sep 16, 2009
The CRC is one of several retirement-related professional certifications vying for credibility at a time when the designation "senior specialist" has fallen into disrepute.
LifeYield Launches New Retirement Income Website
Wed, Sep 16, 2009
LifeYield's technology reviews the multiple taxable and tax-advantaged accounts held by family members and selects the most appropriate assets to liquidate.
Annuities Are a Middle-Class Phenomenon: Gallup/Greenwald
Fri, Sep 18, 2009
Non-qualified annuities contribute significantly to the retirement security of middle-class Americans, Gallup Survey shows.
Obama Administration to Block Conflicts of Interest in 401(k) Advice
Fri, Sep 18, 2009
DOL has killed a Bush regulation that would have let advisers affiliated with mutual funds or brokerages to advise 401(k) participants.
Summer Rally Lures Some 401(k) Money Back to Stocks
Fri, Sep 18, 2009
Participants in 401(k) plans shifted $203 million to equities from fixed income in August, according to Hewitt’s 401(k) index.
SEC Votes to Strengthen Oversight of Rating Agencies
Fri, Sep 18, 2009
The SEC voted unanimously September 17 to create rules that would bolster oversight of credit ratings agencies.
Funded Status of Top 100 Pensions Dropped to 75% in Last Year: Milliman
Fri, Sep 18, 2009
In the past year, the funded ratio of the top 100 U.S. pension plans has fallen to 75% from 100.3%, according to Milliman.
F.D.I.C. May Borrow Funds From Banks
Wed, Sep 23, 2009
Bankers say they'd rather loan money to the FDIC than make new contributions to the FDIC fund or see the FDIC tap a line of credit at the Treasury.
End the D.C.-Wall Street Revolving Door, Two Academics Say
Wed, Sep 23, 2009
The phenomenal growth of derivatives over the past 30 year has made all our big banks more interconnected, and hence systemically risky, said Peter Boone and Simon Johnson.
Participants Want Income Strategy Advice, TIAA-CREF Survey Shows
Wed, Sep 23, 2009
Two-thirds of those surveyed were concerned about outliving their savings and about choosing the best way to draw income to live on from their savings.
Plan Sponsors Increasingly Turn to Investment Consultants—Cerulli
Wed, Sep 30, 2009
Consultants want asset managers who provide consistent investment performance without “surprises.”
Americans Reveal Inertia, Self-Reliance in Principal Financial’s Latest Survey
Wed, Sep 30, 2009
A third of those polled, up from 20% in the second quarter, said their account balances have recovered to their Jan. 1 levels or expect them to recover in two to five years.
SEC Moves To Bolster Oversight of Rating Agencies
Wed, Sep 30, 2009
The SEC voted Sept.17 to address conflicts of interest, reveal rating shopping, and promote accountability.
Employers Expect Health Reform to Raise, Not Lower Costs
Thu, Oct 01, 2009
Only 10% of employers would support an “employer mandate” that required them to provide health insurance to employees.
Pacific Life Applies For Possible In-Plan VA
Thu, Oct 01, 2009
The Destinations VA offers an optional 0.10% uptick in the lifetime payout rate for each of the first ten contract years or until a withdrawal.
Boston College Gets Financing for Financial Literacy Center
Wed, Sep 30, 2009
“Given the turbulent economic climate and the shift of financial risk to individuals, people need help,” said Center Director Alicia Munnell.
New White Paper Describes New Normal
Wed, Oct 14, 2009
“The latest downturn shows that asset allocation alone is not enough," said LIMRA CEO Bob Kerzner.
Sun Life VA Sales Up 35% At Mid-Year
Wed, Oct 14, 2009
Sun Life was the fifteenth largest seller of variable annuities in the U.S. in the first half of 2009, with $1.4 billion in sales and a 2.3% share of the VA market.
J.P. Morgan Adopts FundQuest’s Advisor Gateway™ Platform
Wed, Oct 14, 2009
The program uses FundQuest's reporting, portfolio modeling, fund selection, and rebalancing technology.
Proposal Would Require Ratings Agencies To Share Liability
Wed, Oct 07, 2009
But Moody's CEO claimed that imposing collective liability could spark frivolous lawsuits and create an unpredictable business environment.
Risks of Retirement Poorly Managed
Wed, Oct 07, 2009
Just 8% of employers believe their employees have a strong understanding of how much money they'll need in retirement.
What If Employees Are ‘Too Poor To Retire’?
Wed, Oct 07, 2009
Employers worry that older workers who "retire in place" may impede the advancement of younger workers.
Accountants Split on Financial Reforms
Wed, Oct 07, 2009
Almost half of respondents believe that President Obama's plan will have a “very positive” or “somewhat positive” effect.
Guardian Expands Sales Team for Retirement Solutions
Wed, Oct 07, 2009
Guardian is now a strategic partner for LPL Financial's new Retirement Plus Program, which provides products and support for independent financial advisors.
AIG and ING Sell Units to Raise Cash
Wed, Oct 14, 2009
Both firms are divesting major subsidiaries to pay back billions extended to them by the U.S. and Dutch governments, respectively.
In the U.K., Are Pensions a Retention Tool, or Just a Compliance Chore?
Wed, Oct 14, 2009
Only 55% of working Britons participate in a company pension “scheme” or plan, a survey by Blackrock and the Chartered Institute of Personnel and Development showed.
Cash-strapped Firms Hope to Delay Pension Funding Mandates
Fri, Oct 16, 2009
Three legislative proposals would allow companies to make interest-only payments for two years on their 2008 losses and then amortize pension shortfalls over the next seven years.
A Third of DC Plans Have Auto-Enrollment—Mercer
Fri, Oct 16, 2009
While 74% of employers have a targeted employee participation rate of 80% to 100% percent, only half have achieved that goal.
U.S. Life Settlements Activity Flat in 2008
Fri, Oct 16, 2009
“The economic crisis was the major impediment to growth in the United States life settlements market in 2008," said Scott Hawkins, analyst at Conning.
Retirement Planning a Challenge for Hispanic Americans
Fri, Oct 16, 2009
Only 25.6% of Hispanics are covered by employer-sponsored retirement plans, compared to 42.5% of whites and 40% of African-Americans.
Fed's Anti-Inflation Fire Drills Employ ‘Reverse Repos’
Wed, Oct 21, 2009
In theory, the Fed will be able to remove excess cash from the banking system by selling Treasuries to banks with the agreement to buy them back later at a higher price.
Retirement Opportunity Will Also Be Disruptive—Deloitte
Wed, Oct 21, 2009
Financial service companies hoping to capture "money in motion" must first address internal issues around operations and products, according to Deloitte's "Mining the Retirement Income Market" report.
No Health Insurance? You Court Financial Catastrophe
Wed, Oct 21, 2009
The assets of uninsured households declined between 30 and 50 percent among those ages 51 to 64 who experienced a major illness.
Bank Holding Company Annuity Index Drops 15% in 2nd Quarter
Wed, Oct 21, 2009
Aggregate annuity revenue at the 10 bank companies covered declined 11%—from $331 million to $293 million.
Fed To Review Compensation at Banks—Confidentially
Wed, Oct 28, 2009
The Fed intends to cut executive pay at bailout recipients Citigroup, Bank of America, the American International Group, General Motors and Chrysler.
Labor Secretary Links Health Care Reform, Retirement Security
Wed, Oct 28, 2009
“My own father, who had a stroke last year, has seen his prescription drug costs skyrocket," said U.S. Secretary of Labor Hilda Solis.
Life Insurance and Annuities Excluded from CFPA Jurisdiction
Wed, Oct 28, 2009
The Insured Retirement Institute testified that given the current regulatory protections, adding another layer of regulation to the insurance industry is unnecessary.
It’s the Year of the Un-COLA for Social Security
Wed, Oct 28, 2009
Last year, by contrast, beneficiaries received a 5.8% COLA, as spiking gas prices triggered the largest increase since 1982.
One-Third of Health Care Spending Wasted
Wed, Oct 28, 2009
“By attacking waste, health care costs can be reduced without adversely affecting the quality of care or access to care,” said Robert Kelley of Thomson Reuters.
Bernanke Cites Fiscal Impact of Aging
Thu, Jun 17, 2010
"Among the primary forces putting upward pressure on the deficit is the aging of the U.S. population," the Fed chairman said.
Urban Myth: Retirees Need $300,000 for Health Care
Wed, Nov 04, 2009
The $300,000 figure is one of 10 “myths” that the FRC dispels in a new report, “Making Sense of Investor Needs in the Retirement Income Market.”
Record Retail Sales at Jackson National
Wed, Nov 04, 2009
During the first nine months of 2009, Jackson, a subsidiary of the UK's Prudential plc, generated $6.7 billion in VA sales, a 32% increase over the same period of 2008.
Genworth Financial Announces Profitable Third Quarter
Wed, Nov 04, 2009
After losing $258 million in the third quarter of 2008, Genworth reported net income of $45 million in the same period this year, before provision for non-controlling interests.
MassMutual Retirement Services Posts Record Sales
Wed, Nov 04, 2009
“A lot of plan consolidation is taking place and those plans that are changing providers want a seamless transition,” a MassMutual executive said.
To Prevent Inflation, Australia Hikes Baseline Interest Rate
Wed, Nov 04, 2009
If the Australian economy continues to expand as expected, rates could return to “a more normal 5%” in the next year or two, one analyst said.
Out-of-Pocket Medical Costs in Retirement: Part II
Wed, Nov 18, 2009
At the rate we're going, the cost of health care will eventually dwarf retirees’ ability to pay for it.
Merrill Lynch Has Answers for Roth IRA Questions
Wed, Nov 18, 2009
Merrill Lynch has given its financial advisors a “customized analysis tool” to help clients determine if a Roth IRA conversion is right for them.
Prudential To Launch TV Ad Campaign
Wed, Nov 11, 2009
In other news, Prudential said gross variable annuity sales for the third quarter reached a record $5.8 billion, compared to $2.5 billion a year ago. Net sales were $4.4 billion in the quarter.
With New Accounting Standard, AIG Remains Profitable
Tue, Nov 10, 2009
The $455 million profit in the third quarter compared with a loss of $24.5 billion for the same period in 2008. AIG is 80% owned by the U.S. government.
With Stocks, the “Enemy Is Us”
Wed, Nov 11, 2009
Investor sentiment leads rather than follows the market, two economists say. And that may make stocks fundamentally risky.
Old-Age Poverty Higher in U.S. Than Most Developed Countries
Wed, Nov 11, 2009
About one-fourth of over-65-year-olds in America have incomes lower than half the U.S. median household income, a report by the Organization for Economic Co-operation and Development said.
Income-Oriented Advisors Seek Validation: Survey
Wed, Nov 18, 2009
“The market now seems divided among total return, pooled [buckets] and income floor practitioners with none of these approaches appearing to dominate," say Howard Schneider and Dennis Gallant.
Fidelity Outsources GWB Production to MetLife
Wed, Nov 18, 2009
The living benefit guarantees became too expensive for FILI, Fidelity's life insurer, to underwrite cost-effectively.
Three Liquidity Options in New SPIA from Security Mutual Life
Wed, Nov 18, 2009
The contract owner may withdraw up to 50% of the next 12 months' payments at least once during the life of the contract.
Reputation of ‘Alternatives’ Survives the Crash
Wed, Nov 18, 2009
More than 60% of institutions and advisors believe alternatives will at least equal traditional investments in importance over the next five years.
Sales of Indexed Annuities Cool in Third Quarter
Wed, Nov 18, 2009
“The big story this quarter is the shake-up in rankings among the indexed annuity carriers," said Sheryl J. Moore, President and CEO of AnnuitySpecs.com.
Ethnicity Alone Doesn’t Predict 401(k) Behavior
Wed, Nov 25, 2009
Workers of Asian descent in the U.S. were more likely to be eligible to participate in a 401(k) plan, more likely to participate, and likely to contribute more to their plans than other ethnic groups.
Fixed Annuity Sales Weakened in Third Quarter: Beacon Research
Wed, Nov 25, 2009
"We don't expect to see growth in sales until rates begin rising," said Jeremy Alexander, CEO of Beacon Research.
Phoenix Launches Two Indexed Annuities
Wed, Nov 25, 2009
The products offer three guaranteed income options, and investors can track the S&P 500 Index, the DJIA, the Dow Jones Euro Stoxx 50 Index or all three.
Tom Johnson Joins New York Life
Tue, Nov 24, 2009
Johnson is a board member of the Profit Sharing/401(k) Council of America and the Retirement Income Industry Association and a trustee for the Employee Benefit Research Institute.
Allianz Life’s New Index Annuity Offers Multiple Income Options
Wed, Dec 02, 2009
With a bonus, a roll-up, three crediting methods, four index options and up to five payout choices, this product gives investors plenty to think about.
Nuances of Insurance Wholesaling Revealed
Wed, Dec 02, 2009
Agents prefer different business practices depending on their years in the industry and whether they're captive or independent, a Mintel survey shows.
TIAA-CREF CEO Suggests Five Principles of Retirement Security
Wed, Dec 02, 2009
"A holistic retirement system should provide an affordable fixed annuity that guarantees enough income to help meet basic needs," said Roger W. Ferguson, Jr.
Transport Firm Taps The Principal for 401(k) Services
Wed, Dec 02, 2009
Swift Transportation owns the largest fleet of truckload carrier equipment in the United States, with almost 16,000 vehicles operating from 40 major terminals in 26 states and Mexico.
IRI Says It's "Time to Feel Free" Again
Wed, Dec 02, 2009
With its first-ever web video, the Insured Retirement Institute says as much about its own post-NAVA makeover as it does about the hipness of guaranteed retirement income. The one-minute effort to get Boomers thinking about retirement is intended for viral dissemination.
Conning Research: Individual Annuities Rebound in 2009
Wed, Dec 02, 2009
“This does not mean a return to normal for individual annuity insurers; even after the record gain, the line still experienced an $11 billion net loss over 2008 and 2009," Conning's report said.
Estate Tax Extension Awaits Senate Vote
Wed, Dec 09, 2009
With passage by the House, the bill now has to make it through "the gauntlet that is the Senate."
Proposed Law Would Give Annuity Estimates to 401(k) Participants
Wed, Dec 09, 2009
The measure is patterned on the Social Security Administration's annual statements, which since 1989 have informed working Americans of estimated monthly benefits based on their current earnings.
More Advisors Using Bucket Methods—FPA
Wed, Dec 09, 2009
Almost half of the planners surveyed also said they gained between four and ten new retirement income clients in the last year.
Financial Industry Wants Fed As Its Watchdog
Wed, Dec 16, 2009
The Federal Reserve "is the financial fire department... to which financial institutions and markets naturally turn in time of crisis," say the leaders of MetLife, Goldman Sachs and other large financial services companies.
New Retirement Team at BoA Merrill Lynch
Wed, Dec 09, 2009
Andy Sieg's Retirement & Philanthropic Services division is responsible for over $450 billion in client assets.
The House Passes Financial Regulation Without Republicans
Wed, Dec 16, 2009
The bill consolidates several existing federal agencies into a single Consumer Financial Protection Agency that would set rules on credit cards, mortgages and loans.
Big Money Gravitates to Wirehouse Stars
Wed, Dec 16, 2009
About 80% of wirehouse assets, or $3 trillion, is managed by advisor teams that manage over $200 million each, Cerulli Associates reported.
JPMorgan Dials Down Its Return Expectations
Wed, Dec 16, 2009
Expected returns for both domestic and international large-cap stocks were lowered to 7.5% a year for the S&P 500 and to 7.75% for MSCI EAFE.
Goldman Sachs Announces Compensation Changes
Wed, Dec 16, 2009
The 30 members of the firm's management committee will receive all of their discretionary compensation in shares whose sales are restricted for five years.
An Announcement From Chairman Scrooge
Wed, Dec 16, 2009
Less than a quarter (24%) of 300 companies surveyed by Hewitt Associates are offering holiday bonuses this year, down from 42% in 2008.
Another Departure from MassMutual Retirement Income
Wed, Dec 16, 2009
Gary F. Baker, vice president in the retirement income business division of Massachusetts Mutual Life Insurance Co., has left the company.
New York Life SPIA Sales Up 35% in 2009
Wed, Dec 23, 2009
In the third quarter, the largest U.S. mutual life insurer led all issuers in sales of fixed immediate annuities and sales of fixed annuities in the bank channel.
Cerulli Calls DB(k) a “Diamond in the Rough”
Wed, Dec 23, 2009
But the consulting firm says that neither advisors, asset managers or investors are enthusiastic about the one-year opportunity for Roth IRA conversions.
New Executive Hires at AVIVA USA, ING
Wed, Dec 23, 2009
Jeff Frazee goes to Aviva USA, Lynne Ford to ING.
Lawmakers Dilute Fiduciary Standard for Discount Brokers
Wed, Dec 23, 2009
Under proposed law, registered reps would have no “continuing duty of care or loyalty to the customer” after providing advice.
Bernanke Blames Crisis on Regulatory Failure
Wed, Jan 06, 2010
The Fed's vice chairman, Donald Kohn, added that the fragile economic recovery would “warrant exceptionally low” interest rates “for an extended period.”
Public Pension Shortfall Estimated at $2 Trillion
Wed, Jan 06, 2010
Public pension funds still assume interest rates of 8% when estimating future returns, one analyst noted.
Lincoln Financial Completes Sale of Delaware Investments
Wed, Jan 06, 2010
Delaware Investments will continue to manage Lincoln Financial general account insurance assets under a long-term contract, and provide sub-account advisory services.
401(k) Management Tool Launched by Kring Financial
Wed, Jan 06, 2010
The 401k ProAdvisor service will provide specific recommendations on what funds and amounts the client should buy or sell each quarter.
Advocacy Group Campaigns for “CPI-Senior”
Wed, Jan 06, 2010
Anticipated legislation by Rep. John “Jimmy” Duncan, Jr. (R-TN) would direct the Bureau of Labor Statistics (BLS) to determine the “right” CPI-S formula.
'Actuary' Rated Nation's Best Job
Wed, Jan 06, 2010
Number-wranglers, you are envied by every lumberjack and roustabout in the land.
Life Insurers Face Lean Years: Ernst & Young
Wed, Jan 13, 2010
Instead of relying on a “back-to-basics” strategy in 2010, insurers should focus on innovating in five key areas, said the leader of E&Y's Financial Services and Insurance & Actuarial Advisory Services practice.
Anglo-American Economy Still Needs ‘Sugar Daddy’—Bill Gross
Wed, Jan 13, 2010
U.S. and U.K. asset markets may suffer from the absence of the nearly $2 trillion of government checks written in 2009, opines PIMCO's founder.
Will “Auto-Enrollment” Kill the Employer Match?
Wed, Jan 13, 2010
By raising participation rates, auto-enrollment will raise the cost of employer-matching efforts and may encourage some employers to reduce or eliminate their match.
Western & Southern Enhances Income Annuity
Wed, Jan 13, 2010
Third-quarter 2009 YTD sales of Western & Southern's IncomeSource SPIA were $170.42 million, a 43% increase over the same period in 2008.
Wealthy Less Materialistic, Survey Shows
Wed, Jan 13, 2010
Thirty-five percent of high net worth respondents “believe that my children may be too spoiled by money and have too many material possessions,” up from 22% in 2007.
QE 1 & 2 boost stocks, not economy: TrimTabs
Wed, Jan 19, 2011
The S&P 500 rose 67% during QE1, the period from March 2009 to March 2010, but fell 13% after the first round of quantitative easing ended.
Freedom One Financial To Use vWise Participant Education Tools
Wed, Jan 20, 2010
vWise's SmartPlan Enterprise “provides the benefits of a personal financial professional in a website available 24/7/365.”
Getting Rich Used to Be Easier, 70% Say
Wed, Jan 20, 2010
“Many Americans aren't necessarily buying into the country's long-held belief that anyone with a dream can strike it rich,” said the editor of Bankrate.com.
AXA Equitable To Help Advisors Build a ‘Retirement Income Planning Practices’
Wed, Jan 20, 2010
The program, which combines live presentations with self-study materials, is approved for continuing professional education credit in 49 states.
Mike Treske To Run Annuity Sales and Distribution at John Hancock
Wed, Jan 20, 2010
He succeeds Robert T. Cassato, who will assume a new role as a senior advisor to Manulife Chief Operating Officer John D. DesPrez III on global distribution strategy.
TARP Recovery Fee Could Affect Insurers
Wed, Jan 20, 2010
If implemented, the proposal would require certain insurers to pay a fee equal to 0.15% of “covered assets.”
Life Insurers ‘Cautiously Optimistic’ LOMA Says
Wed, Jan 20, 2010
Most companies are predicting 2010 sales growth, premium growth and profitability to be modest to flat compared to 2009.
Fresh Rumors About MetLife and AIG Reported
Wed, Jan 20, 2010
Selling Alico would help AIG repay the federal government and might strengthen MetLife's position in Asia, an analyst said.
Bank Annuity Fee Income Rose 12.9% in 3Qtr 2009
Wed, Jan 27, 2010
Through September 30, 2009, bank holding companies earned $2 billion from the sale of annuities, a 2.5% increase over the first nine months of 2008, according to the Michael White-ABIA Bank Annuity Fee Income Report.
Obama Praises Annuities, In Principle
Wed, Jan 27, 2010
His endorsement thrilled the Insured Retirement Institute, but a conservative talk radio host said the President wants to nationalize Americans' savings.
Sun Life, Miami Dolphins in Stadium Pact
Wed, Jan 27, 2010
Sun Life Stadium is now the name of the home of the Miami Dolphins, the University of Miami Hurricanes, the Florida Marlins, and the FedEx Orange Bowl. It will host this year's Pro Bowl and Super Bowl.
New BoA/Merrill Ads Ask Prospects to ‘Fill-in-the-Blank’
Wed, Jan 27, 2010
The new campaign grew from a survey suggesting that half of retirees wish they'd focused more on their ‘life goals’ when preparing for retirement.
Tiny, Embattled Presidential Life Announces a New DIA
Wed, Jan 27, 2010
The Sentinel deferred income annuity would pay a 55-year-old man $25K per year for life, starting in 20 years, for about $86,900 today.
ING to Help Retirement Professionals Grow Their Businesses
Wed, Feb 03, 2010
The value-added program includes calculators that participants can use to estimate their retirement "number," compare their progress with that of their peers and identify potential gaps in retirement funding.
Putnam To Help Plan Participants Forecast Income
Wed, Feb 03, 2010
The Lifetime Income Analysis Tool allows participants to see a monthly retirement income statement based on their current savings plan and account balances.
Pioneer In Life Settlements Calls It Quits
Wed, Feb 03, 2010
Goldman Sachs decided to shut down Longmore Capital, its life settlements provider, about a month after unplugging its QxX mortality index.
Agencies Seek Public Input on Lifetime Income Options
Wed, Feb 03, 2010
Two government agencies want your advice on how to include lifetime annuities or other income arrangements as distribution options in employer-sponsored retirement plans.
CCH Reviews Tax Proposals in Obama Budget
Wed, Feb 10, 2010
“Upper-income taxpayers would actually fare somewhat better under Obama's proposals than they would under current law,” said a CCH tax analyst.
Employers Restore ‘Match,’ But Worry About Retirement Readiness
Wed, Feb 10, 2010
Only 18% of employers were "very confident" about their employees having enough retirement income, Hewitt survey shows.
At Lincoln Financial, VAs Are a Bright Spot in Down Year
Wed, Feb 10, 2010
Variable annuity deposits of $2.1 billion were up 9% over 2008 and drove net flows to $838 million, an increase of 42% year-over-year.
Corporate Insight Announces Monitor Award Winners
Wed, Feb 10, 2010
The annual review considered the online offerings of more than 70 financial services firms.
NewRiver Announces VA Summary Prospectus Index
Wed, Feb 10, 2010
Through January 2010, 78 variable product contracts have at least one sub-account with a summary prospectus document.
AllianceBernstein Adds “Volatility Management” To Target-Date Funds
Wed, Feb 17, 2010
The modified funds will “dynamically de-risk into bonds and cash when it's appropriate” to reduce overall portfolio risk.
Few Advisors Confident of Own Business Strategy: Curian Capital
Wed, Feb 17, 2010
Many advisors feel a need to change their approach but are uncertain how to go about it.
Penn Mutual Enriches Income Benefit Without Raising Fees
Wed, Feb 17, 2010
The "Growth and Income Advantage Benefit" rider now has a 6% annual roll-up and a maximum 5% annual payout.
Correction
Wed, Feb 17, 2010
We erred in reporting that “When a husband in a retired couple (both at least age 62) dies, his widow's Social Security benefit, if lower, rises to match his own.”
Stellar 2008 Makes for Dismal 2009 in Bank Annuity Sales
Wed, Feb 17, 2010
“There have been only two times in the last five years where we have seen bank channel total annuity sales this low,” said Kehrer-LIMRA's research director.
Record Sales for Indexed Annuities in 2009
Wed, Feb 24, 2010
Allianz Life was the top-selling carrier in the quarter and for 2009, and its MasterDex X was the top-selling IA for the third quarter in a row.
White House Tweaks Senate Health Care Bill
Wed, Feb 24, 2010
Obama wants to close the Medicare prescription drug 'donut hole' and regulate 'unreasonable' health insurance premium hikes.
Prudential Financial Reports Turnaround in 2009
Wed, Feb 24, 2010
Individual annuity gross sales for the fourth quarter were $4.8 billion, up from $2.2 billion a year ago.
In UK, BMW Is “Ultimate Pension Machine”
Wed, Feb 24, 2010
The BMW pension plan adds to the still-new use of longevity swaps to control risk.
Brokers Are More Than “Blackjack Dealers,” PA Regulators Say
Wed, Feb 24, 2010
“What's at stake here is consumer and investor confidence,” the commissioners wrote to Sens. Arlen Specter and Bob Casey Jr.
401(k) Balances Bounced Back in 2009: Fidelity
Wed, Feb 24, 2010
A combination of S&P 500 growth and new contributions helped raise average Fidelity 401(k) balances 28% in 2009.
Fixed Annuity Sales Fall Overall in 2009
Tue, Feb 23, 2010
Total fixed annuity sales were $105.1 billion in 2009, just 2% less than the record high in 2008.
Variable Annuity Sales Fall 18% in 2009
Thu, Feb 25, 2010
“The last time VA sales were at this level was in 2003, at the end of the last financial crisis,” said LIMRA's research director.
Don’t Tax High-Earners’ Annuity Income, Says ACLI
Thu, Feb 25, 2010
It's counter-productive to finance Medicare at our customers' expense, life insurance lobby tells Obama.
FINRA Has “Disastrous Record”: Watchdog Group
Thu, Feb 25, 2010
FINRA and other SROs have “an incestuous relationship with the industry they are tasked with regulating," according to the Project on Government Oversight.
In a Down Year, Four Firms Grow Their VA Sales
Tue, Mar 02, 2010
Prudential Annuities, MetLife, Jackson National Life and Sun Life Financial found a silver lining last year.
AIG Sells Its Asian Crown Jewel
Wed, Mar 03, 2010
The sale of Hong Kong-based AIA, would help repay some of the $180 billion that AIG owes to the U.S. government.
Not Much Interest in Income Products: Cogent
Wed, Mar 03, 2010
Only 14% of those surveyed said they were very familiar with income products and only three percent said they were very interested in such products.
Western National #1 in 4Q Fixed Annuity Sales
Wed, Mar 03, 2010
Beacon Research has released its fixed annuity sales rankings for fourth quarter 2009.
AIG Mending, But Still Dependent, GAO Says
Wed, Apr 28, 2010
"The sustainability of any positive trends in AIG's operations depends on how well it manages its business in this current economic environment," said a new GAO report.
From Genworth, a Less Painful Way to Buy LTC Insurance
Wed, Mar 31, 2010
With this product and others like it, the cost of LTCI is greatly reduced because the fixed annuity assets serve as a very large deductible.
Pension Funding Edged Higher in February
Wed, Mar 10, 2010
“We continue to see significant interest in liability driven investing (LDI) from plans looking to limit their exposure to volatility,” said Peter Austin of BNY Mellon Pension Services.
Stock Losses Won’t Hurt ‘Early Boomers’
Wed, Mar 10, 2010
Those who defer retirement to rebuild their savings may be far outnumbered by those forced to retire early by unemployment, according to National Bureau of Economic Research paper.
MetLife To Acquire ALICO for $15.5 Million
Wed, Mar 10, 2010
When the deal goes through, AIG is expected pay about $31.5 billion to the Federal Reserve Bank of New York, cutting its debt to the New York Fed to about $45 billion.
Pacific Life Creates “Retirement Solutions Division”
Wed, Mar 10, 2010
Among other things, the change reflects the recent transfer of Pac Life's structured settlements and retirement annuities business to the division.
Jackson Announces Record Sales, Profit in 2009
Wed, Mar 10, 2010
A unit of Britain's Prudential plc, Jackson National Life sold $10.0 billion in variable annuities during 2009, up from $6.5 billion in 2008.
New Research Analyzes Benefits of Roth Conversion
Wed, Mar 17, 2010
In 2008, IRA assets totaled some $3.6 trillion, 95% of which was in traditional IRAs, according to the Center for Retirement Research at Boston College.
Two Insurers, Two Multi-Media Web Strategies
Wed, Mar 17, 2010
The Principal and AXA Equitable have established new multi-media web portals for investors and for bloggers, respectively.
Target-Date CTFs: The Next DC Gold Rush?
Wed, Mar 17, 2010
Collective trust funds (CTFs) with target-date strategies are the talk of the defined contribution world, says Cerulli Associates.
Credit Crunch Looms in 2012, Analysts Say
Wed, Mar 17, 2010
Junk bonds are set to mature at a rate of $155 billion in 2012, $212 billion in 2013 and $338 billion in 2014, up from only $21 billion in 2010.
Financial Reform Bill Released by Senator Dodd
Wed, Mar 17, 2010
Here are highlights of the controversial financial reform bill, courtesy of OpenCongress.org.
Fiduciary Standard Stripped From ‘Dodd Bill’
Thu, Mar 25, 2010
Broker-dealers and life insurance agents want the SEC to continue to regulate them using a standard of care based on suitability, not fiduciary duty.
Financial Execs Invited to Endorse ‘Fiduciary Statement’
Thu, Mar 25, 2010
"No man can serve two masters," said John Bogle, founder of The Vanguard Group and member of the Committee for the Fiduciary Standard.
Australians Want More Workplace Savings
Thu, Mar 25, 2010
After more than a decade of compulsory contributions, Australians have over AU$1.177 trillion in their state-sponsored defined contribution plan.
More Assets Moving From 401(k)s to IRAs
Thu, Mar 25, 2010
“We are definitely seeing an uptick in the number of 401(k) plan participants who choose to roll over plan assets," a Charles Schwab executive said.
Hartford Financial Prepares to Repay U.S. Treasury
Thu, Mar 25, 2010
Hartford Financial borrowed $3.4 billion in 2009 under the Treasury Department's Troubled Asset Relief Program.
Vandalism Follows Obama Health Bill Signing
Thu, Mar 25, 2010
On Wednesday, Democratic legislators had reportedly received death threats and been the victims of vandalism because they voted for the health care bill.
Social Security Cash-Flow Turns Negative
Thu, Mar 25, 2010
Unemployment has forced many people to apply for benefits sooner than planned while also reducing payroll tax revenue. But the change won't affect benefits.
Fund Fees Can Devastate 401(k) Savings: Towers Watson
Wed, Mar 31, 2010
“Most employees are losing a very material amount of their retirement assets due to fee-related erosion,” the consulting firm said.
New Organization Seeks 401(k) Reform and Much More
Wed, Mar 31, 2010
“So far we've been raising awareness of the crisis in retirement income,” said Nancy Hwa, a spokesperson for Retirement USA.
‘What Do You Want 2Retire?’
Wed, Mar 31, 2010
Merrill Lynch's billboard urges Times Square visitors to send text messages naming the thing they'd most like to “retire.”
HSAs No Panacea for Retiree Medical Costs: EBRI
Wed, Apr 07, 2010
If it's true that retired couples will need $350,000 on average to cover costs not covered by Medicare, Health Savings Accounts won't be large enough to do the job, says the benefits research organization.
Czech It Out: Pension Pains are Global
Wed, Apr 07, 2010
Age-related spending in the Czech Republic will be 23.4% of GDP by 2060, according to European Commission data.
Americans To Spend Their Mad Money Sanely
Wed, Apr 07, 2010
More than eight in 10 Americans polled said they would use their tax refunds to pay down debt, save or invest, or spend on everyday necessities.
P. Kennedy Proposes Savings Accounts for Children
Wed, Apr 07, 2010
H.R. 4682 would create an account with $500 per year for all children at birth, with a supplement of up to $500 and matching contributions of up to $500 each year for children in families with incomes below the national median.
Insurance M&A at Lowest Level Since 2002
Wed, Apr 14, 2010
But 'we are already seeing that pent-up demand is driving increased M&A activity in most sectors of the insurance market,' said the director of research at Conning Research and Consulting.
Hartford CEO Comments on VAs Clarified
Wed, Apr 14, 2010
"Guaranteed income in our view is the emerging business opportunity in the annuity space," said Liam McGee.
‘Graphic Illustrations’ of U.S. Spending via Heritage Foundation
Wed, Apr 14, 2010
The conservative think tank offers 39 charts on 'runaway federal spending' for free downloading.
MassMutual Retirement Services Offers ‘Virtual Site Visit’
Wed, Apr 14, 2010
Intended to simulate a visit to MassMutual's Springfield, Mass., headquarters, the virtual tour introduces viewers to the firm's retirement plan services.
Group Urges Investigation of FINRA
Wed, Apr 14, 2010
'FINRA failed not just in Lehman, but Bear Stearns and AIG as well, yet has not been the subject of any investigative action,' says the Alliance for Economic Stability.
What the ABACUS 2007-AC1 Offering Circular Says
Wed, Apr 21, 2010
In the Offering Circular for the CDO at the heart of the SEC lawsuit against Goldman Sachs, the investment bank disclaims any fiduciary responsibility toward other parties in the transaction.
New York Life Reports 2009 Financials
Wed, Apr 21, 2010
Operating revenue reached a new high and the firm expanded its surplus by $2 billion, to $15 billion.
Principal Financial Introduces Participant Planning Tool
Wed, Apr 21, 2010
The new tool gives financial professionals access to a comprehensive library of education plans and materials, the company said.
Affluent Still Nervous, Merrill Lynch Survey Shows
Wed, Apr 21, 2010
Almost three out of four affluent baby boomers ages 51-64 are concerned about whether their assets will last throughout their lifetime.
RIIA Weighs In on In-Plan Income Options
Wed, Apr 21, 2010
Lifetime income options should be offered by all defined contribution plans, but they shouldn't be mandated elections for all participants, RIIA says.
Wells Fargo Tops Bank Annuity Fee Chart
Wed, Apr 28, 2010
Wells Fargo & Co. accounted for $678 million, or almost 26%, of bank annuity fee income in 2009, thanks to its acquisition of the perennial leader in bank annuity sales, Wachovia Bank.
New Stable Value Unit at New York Life Investments
Wed, Apr 28, 2010
Aruna Hobbs, who joined New York Life in November 2009 from AEGON Insurance, will lead the new unit.
Financial Reform Bill Blocked, But Derivative Bill Proceeds
Wed, Apr 28, 2010
Under an Agriculture Committee-backed bill, insurers who use derivatives to hedge against interest rate risk would have to use standardized derivatives contracts listed on exchanges.
Vanguard Sees Institutional TDF Flows Triple in Five Years
Wed, Apr 28, 2010
Participants in Vanguard-administered plans put $21.4 billion into target-date funds in 2009, up from $680 million five years earlier.
Life Insurer Capital and Surplus Grew in 2009
Wed, Apr 28, 2010
“Robust equity markets” markedly improved earnings in both group and annuity operations.
Genworth Financial Announces 1Q 2010 Results
Wed, May 05, 2010
The Richmond-based company reported net income of $212 million in the first quarter of 2010 (before provision for non-controlling interests), compared to a loss of $469 million in the first quarter of 2009.
Lincoln Financial Group Profitable So Far in 2010
Wed, May 05, 2010
The Individual Annuities segment reported operating income of $119 million in the first quarter of 2010, up from $74 million a year ago, reflecting a 34% increase in average annuity account values.
ING Responds to Income RFI
Wed, May 05, 2010
Some of the administrative burdens that come with carrying annuities need to be eased in order to attract more employers to offer these types of products, ING said.
US Mutual Fund Inflows On Record Pace
Wed, May 05, 2010
Worldwide, mutual fund investors have added nearly $1.4 trillion of net flows to bond and stock funds since March 2009's market bottom, according to Strategic Insight's Simfund databases.
TIAA-CREF Comments on Retirement Income
Wed, May 05, 2010
“One of the disadvantages of in-plan options is that Qualified Joint Survivor and Annuity (QJSA) rules can often be cumbersome, confusing, and difficult to administer," said the TIAA-CREF brief.
MetLife Posts Record U.S. Annuity Sales in 3Q 2010
Sun, Oct 31, 2010
MetLife saw record U.S. annuity sales of about $5 billion during the third quarter of this year, up 25% over the third quarter of 2009. The $5 billion included variable annuity sales of $4.7 billion, up 35% from the previous year.
It’s Crunch Time for Annuity Issuers: Conning Research
Wed, May 12, 2010
"Premiums have actually declined, and rebuilding them will be a challenge," said Conning's Scott Hawkins.
Prudential Financial Nets $536m in 1Q 2010
Wed, May 12, 2010
Individual annuity gross sales for the quarter just past were $4.9 billion (up from $2.2 billion a year ago), while net sales were $3.2 billion (up from $643 million a year ago.)
Milliman Proposes “Simple, Obvious” In-Plan Annuity Fix
Wed, May 12, 2010
"The life insurance companies have a big opportunity here," said Ken Mungan of Milliman. "They should jump on it."
Post-Crisis, Greeks Face Longer Work Lives
Wed, May 12, 2010
Today, the police, harbor workers, security services and journalists for the state media can retire in their 50s. Starting in 2013, these privileges will be abolished.
Jackson National Tailors GMWB for the Tax-Conscious
Wed, May 12, 2010
The new living benefit allows contract owners to withdraw enough to offset all or part of the income tax on their distributions.
Despite reform, retirees face steep health care costs
Wed, Dec 01, 2010
Some prior estimates have been significantly revised downward as a result of changes to Medicare Part D (prescription drug) cost sharing that will be phased in by 2020 due to the recently enacted health reform law.
Regulate Ratings Agencies More or Less?
Wed, May 19, 2010
Sen. Al Franken (D-MN), the former "Saturday Night Live" comedy writer, wants an independent panel to assign Wall Street deals to rating companies.
Rising Flows for Active U.S. Stock Funds
Wed, May 19, 2010
Target-date funds continued to gather assets, with inflows of $20.5 billion in 2010 through April.
Fidelity Launches Corporate Bond Fund
Wed, May 19, 2010
The fund will track the Barclays Capital U.S. Credit Bond Index, a value-weighted index of investment-grade, corporate fixed-rate issues with maturities of one year or more.
First Quarter Index Annuity Sales Down 3.9%: AnnuitySpecs
Wed, May 19, 2010
In the first quarter, Allianz Life again led all issuers with a 20% market share. Its MasterDex X was the top selling product for the fourth consecutive quarter.
Nervous Americans Not Flocking to Annuities
Wed, May 19, 2010
Total annuity sales for the first quarter were $47.4 billion, down 6.9% from $50.9 billion in the previous quarter, and down 27%, from $64.4 billion in the first quarter of 2009.
Morningstar Announces Conference Speakers
Wed, May 26, 2010
Jeffrey Gundlach, co-founder, CEO and chief investment officer of DoubleLine Capital, will speak on June 23; and Bill McNabb, president and CEO of Vanguard, will address attendees on June 24.
Pew Report: Permanent Tax Cuts Would Raise National Debt
Wed, May 26, 2010
The current debt-to-gross domestic product (GDP) ratio in the United States is 57%, compared to an average of 37% over the last 50 years.
Use of Summary VA Prospectuses Soars
Wed, May 26, 2010
“Insurance companies and their fund partners could provide a windfall of over $220 million if they continue to adopt the summary prospectus,” said NewRiver CEO and chairman Russ Planitzer.
Consensus Emerges on Derivatives Market Structure: BNY Mellon
Wed, May 26, 2010
Nearly two-thirds of market participants say they have already implemented changes in advance of regulatory reform, with 79% expecting central clearing to become standard.
New York Life Tops 1Q Fixed Annuity Sales: Beacon Research
Wed, Jun 02, 2010
Allianz Life moved to second from third place on the strength of its top-selling MasterDex X indexed annuity. Aviva USA jumped two notches to come in third.
Dual Fiduciary Standard Headed for Vote By July 4
Wed, Jun 02, 2010
"Clients receiving investment advice don't distinguish between broker-dealers and investment advisors and neither should the law,” a Treasury official said.
To Protect Pension Funds, Mix Lump Sum with Annuity: Hewitt
Wed, Jun 02, 2010
The United Kingdom, Germany, Belgium and Switzerland already offer their participants the option of a one-off payment as part of their pension rights at the retirement date.
Retirement Planners Like American Funds, Franklin Templeton, and Blackrock/iShares, Survey Shows
Wed, Jun 02, 2010
“There continues to be little consensus in the best way to create retirement income streams or manage portfolios,” said Howard Schneider, president of Practical Perspectives, the report co-author.
Faith in Financial Reform Fragile: St. Louis Fed President
Wed, Jun 02, 2010
“There are clear limits to what U.S. regulatory reform is likely to accomplish. Important problems will remain unresolved," said James Bullard, president of the Federal Reserve Bank of St. Louis.
An alert from SPARK Institute on participant fee disclosure
Tue, Dec 21, 2010
Plan sponsors are required to provide participants with information about all of their plans’ investment options in a single chart or similar format, said SPARK general counsel Larry Goldbrum.
Imagining the Future of Longevity Bonds
Wed, Jun 09, 2010
The bonds would pay coupons that would be higher when the more people outlived expectations and lower when fewer people did.
Regulatory ‘Collateral Damage’ Threatens Stable Value Funds
Wed, Jun 09, 2010
"This legislation may lead to the complete elimination of stable value funds in DC plans, impacting the millions of Americans at or near retirement who rely" on them, a trade group says.
Warning on Excess VA Withdrawals Proposed
Wed, Jun 09, 2010
New York insurance regulators propose disclosure of the mechanism of the excess withdrawal aspects of the contract before the contract is issued and at the time of the request for a withdrawal.
Lincoln Financial Launches Consumer Website
Wed, Jun 09, 2010
“MyConfidentFuture.com provides up-to-date information and timely insights to help empower people to face their futures with confidence,” said Heather Dzielak, Chief Marketing Officer, Lincoln Financial Group.
Thomas M. Marra to Lead Symetra Financial
Wed, Jun 09, 2010
Symetra Financial is the parent of Symetra Life Insurance Company, a life and annuity company that raised about $365 million in a January IPO and was listed on the New York Stock Exchange.
Montana Senator Nixes 401(k) Fee Disclosure
Thu, Jun 17, 2010
U.S. Rep. George Miller (D-CA) said that the proposed elimination of fee disclosure requirements was “unacceptable.”
Vanguard Now Offers a Dozen TDFs
Thu, Jun 17, 2010
The 2055 Fund is aimed at investors between ages 18 and 22.
ING Launches Registered Indexed Annuities
Fri, Jun 18, 2010
“Offering registered fixed index annuities gives us products that we can make available to many banks and full-service brokerage firms,” said Lynne Ford, CEO of ING Financial Solutions.
Why Do Educated People Live Longer?
Thu, Jun 17, 2010
One possible explanation is that the highly educated have better access to medical care and better adherence rates to prescribed regimes.
With BP Investments, Pensions Win or Lose
Wed, Jun 23, 2010
BP's falling share price has cost the NY state pension fund more than $30 million, but NJ's public pension fund earned a $5.5 million profit from its investment in BP plc.
Lincoln Financial to Repay U.S. Treasury Investment
Wed, Jun 23, 2010
To repurchase almost $1 billion in preferred shares, Lincoln Financial Group is selling $335 million worth of common stock and up to $750 million of senior notes.
French Retirement Age May Rise to 62
Tue, Jun 22, 2010
The move is expected to allow the government to save €18bn, or about $27 billion, and combat a growing pensions deficit.
Loyalty to Plan Providers Varies By Plan Size—Cogent
Wed, Jun 23, 2010
Plan providers are able to win loyalty in each size-tier to the extent that they meet the needs of that tier, says Cogent Research.
SEC Proposes More Disclosures for TDFs
Wed, Jun 23, 2010
Under one proposed rule, marketing materials that include a date in a target date fund’s name must also disclose the fund’s asset allocation at the target date.
The Global Distribution of Millionaires
Wed, Jun 30, 2010
In Singapore and Hong Kong, millionaire households account for 11.4% and 8.8%, respectively, of all households, according to Boston Consulting Group.
The Guardian Offers New SPIA
Wed, Jun 30, 2010
As an inflation hedge, the product’s Annuity Payment Increase Benefit option increases the annuity payment each year by a fixed dollar amount.
Towers Watson Explains New Pension Relief Law
Wed, Jun 30, 2010
A Client Alert details the implications of the "Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010."
Orszag to Depart OMB Director Post
Wed, Jun 30, 2010
“Basically, the OMB Director is a brutal job and subject to quick burnout," commented one political blogger.
NIH Devotes Only 11% of Budget to Elderly Studies
Wed, Jun 30, 2010
Although there has been moderate growth in spending at all 27 N.I.H. research centers, the growth is slower at the National Institute on Aging.
In Japan, Savers Grow More Conservative
Wed, Jul 07, 2010
Among risk assets, domestic stock funds were down 19% as a proportion of assets held, while foreign stock funds were down 28%, with a correspondingly positive growth in domestic and international bond funds.
Roth Account Openings Up 89% at Fidelity
Tue, Jul 06, 2010
New account openings increased significantly in the first four months of the year, driven by Roth IRA conversion activity and the use of Roth IRAs as a savings vehicle.
Plans Could Save 70 Bps a Year Through Trusts and ETFs
Tue, Jul 06, 2010
Without giving up the investment objectives offered by actively managed funds, participants in 401(k) plans could pay much lower costs on their assets by shifting to ETFs and commingled trusts, a Center for Retirement Research report said.
Bill Gross Cites Barrier to a Better ‘New Normal’
Tue, Jul 06, 2010
It is the lack of global aggregate demand—resulting from too much debt in parts of the global economy and not enough in others--that is the essence of the problem, PIMCO's CIO wrote in his latest column.
A Longevity Test: Science or Science Fiction?
Tue, Jul 06, 2010
After studying the genomes of centenarians in New England, two Boston University researchers say they have identified a set of genetic variants that predicts extreme longevity with 77% accuracy.
D.C. Appeals Court Rules Against 151A
Wed, Jul 14, 2010
“Most likely this means that the SEC will drop efforts to regulate this product,” said Eric Marhoun, general counsel of the Old Mutual Insurance Company.
Investors Talk the Talk, But Ignore Walk: Allianz Global Investors
Thu, Jul 15, 2010
The majority of investors 65-plus (57%) have less than 25% of their portfolios in bonds and/or bond mutual funds, according to a survey of Americans in households with at least $250,000 in investments.
LPL to buy National Retirement Partners
Thu, Jul 15, 2010
Over the past decade, LPL has become the largest independent contractor broker-dealer in the industry. In 2000, the firm had 3,569 advisers. It had 12,026 as of March 31.
To Shrink Medical Costs, Make Them Visible: SOA
Thu, Jul 15, 2010
Consumers feel they could make more informed decisions if they had more information on medical procedures and options for care, the SOA found.
PIMCO Unveils Sovereign Bond Benchmarks
Wed, Jul 14, 2010
Instead of giving the highest weights to countries with the most debt, PIMCO's new indices will give the highest weights to countries with the highest income based on GDP.
Correction
Thu, Jul 15, 2010
Last week, an article in RIJ misdescribed Axa Equitable's Retirement Cornerstone variable annuity.
TDF Demographics Revealed
Sun, Jul 18, 2010
The share of all 401(k) plan participants using TDFs increased from 25% in 2007 to 31% in 2008, a new study from the Employee Benefits Research Institute shows.
A Dynamic Approach to Sequence Risk
Sun, Jul 18, 2010
A new scholarly claims that sequence risk demands attention throughout retirement, not just during the years immediately before and after the retirement date.
RIJ Takes a Holiday
Sun, Jul 18, 2010
Retirement Income Journal will not be published July 28. The next issue will appear August 4, 2010.
ASPPA Supports DOL-Mandated Fee Disclosure
Sun, Jul 18, 2010
Over time, the fees and expenses charged to DC plan accounts can take a substantial bite out of retirees’ retirement savings, said the CEO of the plan sponsor advisers and actuaries group.
Retirement Planning CE Course Offered
Sun, Jul 18, 2010
"Planning for retirement can involve multitudes of subjects. As individuals gain knowledge on the value of annuities, they will understand the benefit of this product," Quest CE said in a release.
Most Plan Fiduciaries “Ill-Prepared” to Evaluate Alternatives
Wed, Aug 04, 2010
Alternative investments could be a trap waiting for unwary or unprepared plan sponsors and fiduciaries, Matthew Hutcheson told members of the House Subcommittee on Health, Employment, Labor and Pensions on July 20.
To Offset Potential S.S. Cuts, Save 10 Percent More
Wed, Aug 04, 2010
A hypothetical 45-year-old couple should save an extra $90,000 before they retire. At age 55, the same couple year-old should begin saving an extra $82,900, suggests economist Laurence Kotlikoff.
Spark Institute Seeks Input on Proposed Data Standards for In-Plan Income Options
Wed, Aug 04, 2010
"The absence of standards for sharing necessary information among the insurance product providers and unaffiliated record keepers [is] an impediment to more widespread access to these products," said Spark attorney Larry Goldbrum.
New River and Newkirk in Electronic Delivery Deal
Wed, Aug 04, 2010
Newkirk Products, Inc., has agreed to distribute NewRiver’s Prospectus Express product in the 401(k) and 403(b) markets via Newkirk’s Fund Central platform.
In UK, Protest Against 'Lynch Mob' Mentality on Public Pensions
Wed, Aug 04, 2010
Lobbyists wish to "drastically erode the modest pensions of millions of public sector workers," said Derek Simpson of Unite, Britain's largest union.
Rates Won’t Rise for “Two to Three Years,” Gross Says
Wed, Aug 11, 2010
PIMCO's $239 billion Total Return Fund, which Gross manages, has returned 13% in the past year, beating 71% of its peers, according to Bloomberg.
Boomer Decumulation May Depress Asset Prices
Wed, Aug 11, 2010
The problem is that the demographic group that is selling homes and investments—the postwar BabyBoom generation—will be larger than the group that will be buying the assets.
New York Life Sets Income Annuity Sales Record
Wed, Aug 11, 2010
The nation’s largest mutual life insurer announced a record $870 million worth of income annuity sales in the first half of 2010, along with gains in life insurance, long-term care insurance, mutual fund sales.
Retirement Assets Reach $16.5 Trillion 1st Quarter: ICI
Wed, Aug 11, 2010
Assets in target date mutual funds grew 9.8 percent in the first quarter. Lifecycle mutual funds managed $281 billion at the end of the first quarter of 2010, up from $256 billion at year-end 2009.
Cue the Traveling Music...
Tue, Aug 24, 2010
... Because the fall conference season is about to begin. It starts after school opens and ends by Thanksgiving.
Broadbridge Acquires NewRiver for $77 Million
Tue, Aug 17, 2010
The acquisition accelerates Broadridge’s e-strategy while strengthening its industry-leading compliance communication capabilities, the company said in a release.
VA Sales Up Sharply in Q2: LIMRA
Tue, Aug 17, 2010
"VA sales jumped more than $3 billion in the second quarter,” said Joe Montminy, assistant vice president for LIMRA's annuity research.
Indexed Annuity Sales Rebound
Tue, Aug 17, 2010
"With CD rates at 1% and fixed annuities crediting a mere 3.65% on average, it is no wonder that this was the second-highest quarter in terms of indexed annuity sales,” said Sheryl J. Moore, president and CEO of AnnuitySpecs.com.
Reliable Sources Disagree on July Fund Flows Data
Tue, Aug 17, 2010
Morningstar and Strategic Insights both reported mutual fund and ETF flows for July, but the numbers didn't match. If you know why not, please write and tell us.
How to Reduce the Threat of Fiduciary Liability Lawsuits
Wed, Aug 18, 2010
A new report designed to help employers reduce their exposure to fiduciary liability lawsuits appears to reflect an increasingly adversarial relationship between plan sponsors and plan participants.
John Hancock Offers “To” and “Through” Target Date Funds
Wed, Aug 25, 2010
The glide path for Retirement Choices portfolios features a lower allocation to equities and slopes down at a faster pace than it does for the Retirement Living portfolios.
Dutch Pensioners in a Panic
Wed, Aug 25, 2010
Participants in 14 pension funds in the Netherlands are facing benefit cuts in the wake of the financial crisis.
New SALB Launched By Investors Capital Corp.
Wed, Aug 25, 2010
The account combines Investors Capital Advisory Services’ series of asset allocation models with a stand-alone living benefit that offers investors a guaranteed 5% lifetime income stream.
A Snapshot of U.S. Household Debt
Wed, Aug 25, 2010
As a country, the U.S. owes its bondholders almost $13.4 trillion. As individuals, Americans owe about $11.2 trillion. Unlike the national debt, however, household debt recently fell--for the first time in four years.
Money Mishaps Linked to Early Dementia
Sun, Oct 31, 2010
In a 2009 Fidelity survey, 84% of advisors said they thought they had clients with symptoms of dementia. Half said they were reluctant to broach the subject of dementia with clients.
The Hartford Aims for Bigger Share of Mid-Sized DB, DC Market
Wed, Sep 01, 2010
In September, The Hartford is launching a series of forums for advisors that will unveil new research on retirement plan sponsors’ and participants’ evolving needs, and new approaches in meeting them.
ING Launches Newest Phase of its ‘Numbers’ Campaign
Wed, Sep 01, 2010
The ad will air on major broadcast and cable outlets during coverage of professional Grand Slam tennis in the U.S.
All-Star Cast Expected for DoL Hearing on In-Plan Income
Wed, Sep 01, 2010
The hearing will begin at 9 a.m. (EST) on September 14 and 15, 2010 in the Labor Department’s main auditorium, 200 Constitution Avenue, NW in Washington, D.C.
Record Sales for Indexed, Income Annuities in 2Q: Beacon
Wed, Sep 01, 2010
The top sellers of fixed annuities were New York Life, Allianz Life, Aviva USA, Western National Life (AIG), and American Equity Investment Life.
Britain’s Annuity Muddle
Wed, Sep 01, 2010
Surprisingly few retirees use the ‘open market option,’ which allows them to transfer their money at retirement from the asset management company where they accumulated their savings to another provider with a higher annuity rate.
Response to Last Week's FIA Article
Wed, Sep 01, 2010
FIA issuers face the "discipline of the market" when resetting their crediting formulas each year, writes David Babbel of the Wharton School.
Quote of the Week
Wed, Sep 01, 2010
“If we want to study whether a ‘fiduciary duty’ is better for consumers, then we should also study if grass is green, if water is wet, and if deserts are dry.” Luke Dean, professor of finance, William Paterson University, Wayne, NJ.
Vanguard and Hueler Partner to Provide Low-Cost Income Annuities
Wed, Sep 08, 2010
The announcement comes a week ahead of Department of Labor hearings on in-plan income options, which themselves mark a new phase of competition for rollover dollars.
By Another Name, Annuities Would Smell Sweeter
Wed, Sep 08, 2010
Some 80% of 3,200 people surveyed preferred a product with four percent return and a principal guarantee over a product with an 8% return subject to market risk. But they balk at the word, “annuity.”
Fitch Deems Life Insurers “Stable”
Wed, Sep 08, 2010
Fitch expects the industry's large in-force variable annuity business to hurt profitability over the near term, however, and could damage industry earnings and capital in an unexpected, but still possible, severe stress scenario.
SIFMA Urges Uniform Standard for Advisors, Brokers
Wed, Sep 08, 2010
Broker-dealers and investment advisers should appropriately manage conflict of interest by providing individual investors with full disclosure that is simple and clear and allows them to make informed investment decisions, SIFMA said.
Jefferson National Offers DFA Funds
Wed, Sep 08, 2010
Jefferson National’s Monument Advisor VA contract offers more than 250 investment options, or five times the number offered by most VAs, the company said.
French Fight to Retire at 60
Tue, Sep 28, 2010
Traffic was snarled in France's cities last week, fewer than half of the Paris Metro's lines worked normally, and about half of the long-distance trains were canceled, as an estimated one million workers protested changes in pension laws.
Expect Three New Regs by Year-End
Tue, Sep 14, 2010
“This fall promises to be interesting,” said Los Angeles ERISA attorney Fred Reish.
Banks Selling More VAs, Mutual Funds
Tue, Sep 14, 2010
Bank variable annuity revenue was 16% higher during the first half of 2010 than during the first half of 2009, according to Kehrer-LIMRA
The Six Emotional Stages of Retirement
Tue, Sep 14, 2010
New retirees and people who are three to five years from retirement bear the emotional brunt of the financial crisis, according to Ameriprise Financial's New Retirement Mindscape II survey.
Vanguard Launches New Index ETFs
Tue, Sep 14, 2010
With the expansion, Vanguard offers 55 ETFs, including eight new equity funds as well as ETFs targeting the growth and value segments of the S&P 500 Index and multiple segments of the S&P MidCap 400 and SmallCap 600 Indexes.
Quote of the Week
Thu, Sep 16, 2010
“The fiduciary issue is so daunting that it ends the conversation. Sponsors ask, ‘We’re guaranteeing payments for 30 or 35 years?’ It stops the conversation. It’s a wall.” David Wray, director of the Profit-Sharing/401(k) Council of America, a trade group for plan sponsors.
Four Firms Capture Half of VA Sales
Wed, Nov 24, 2010
At the same time, a dozen large insurance companies saw their VA sales drop by double-digit percentages from the second to the third quarter of 2010, according to Morningstar data.
Century Bonds Illiquid: Towers Watson
Tue, Sep 21, 2010
Geert-Jan Troost, an investment consultant at Towers Watson, said that while these bonds can serve as a "great" diversifier from a liability point of view, there were a number of issues to consider.
Great Ferment on the U.K. Retirement Scene
Wed, Sep 22, 2010
Within six months of retirement, workers in the U.K. should get two half-days off for retirement income counseling, and they should be provided with three competitive annuity quotes, says a major U.K. third-party administrator.
Become Your Future You, TIAA-CREF Ad Campaign Urges
Wed, Sep 22, 2010
Besides ad spots in every media, the campaign will feature videos that demystify such challenges as how to pursue your passions and still save, how not to run out of money, and how to make savings 'work harder.'
Lincoln Financial Group Acquires Treasury Warrants
Wed, Sep 22, 2010
The company paid $16.60 per warrant at an auction held by the Treasury. The warrants have an exercise price of $10.92 and expire on July 10, 2019. The transaction is expected to close today, September 22, 2010.
Quote of the Week
Wed, Sep 22, 2010
"The Committee will maintain the target range for the federal funds rate at 0 to 0.25 percent... Economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period." -- Federal Reserve chairman Ben Bernanke.
The Bucket
Wed, Sep 22, 2010
Late-breaking items on AIG, Prudential, New York Life, Symetra Life, FRC, Blue Frog and more...
Fed Charts a Course for “QE2”
Tue, Sep 28, 2010
If the economy needs a second dose of quantitative easing, the Fed might try an alternative to the "shock and awe" approach of 2009-10.
The Bucket
Tue, Sep 28, 2010
Late-breaking items about WealthVest, LifeYield, Vanguard, ING, MassMutual and more...
Quote of the Week
Tue, Sep 28, 2010
"...We pledge to dedicate ourselves to the task of reconnecting our highest aspirations to the permanent truths of our founding by keeping faith with the values our nation was founded on, the principles we stand for, and the priorities of our people. This is our Pledge to America." -- The Republican Party.
Obama Signs Partial Annuitization Law
Tue, Sep 28, 2010
H.R. 5297, which President Obama signed into law yesterday, contained a section allowing VA owners to annuitize part of their contract without first exchanging it for two new contracts. The rule takes effect January 1, 2011.
SunAmerica Offers Two New Lifetime Income Options
Wed, Sep 29, 2010
Income Plus 6% locks in the greater of investment gains or an annual income credit of up to 6% for first 12 years. Income Builder 8% locks in the greater of gains or a credit of 8% in each year withdrawals are not taken during the first 12 years.
Bank Annuity Fee Income Improves in 2Q
Wed, Oct 13, 2010
Year over year, bank annuity fee income was up 8.0% from the $593.1 million in the second quarter of 2009. First-half 2010 annuity commissions of $1.22 billion, however, were down 7.8% from $1.33 billion in the first half of 2009.
Quote of the Week
Wed, Oct 13, 2010
"We're fooling ourselves if we think there's only one approach" to the challenge of generating a reliable stream of retirement income--Vanguard principal John Ameriks, speaking to the New York Times.
The Bucket
Wed, Oct 06, 2010
Late-breaking items about the Financial Planning Association, InFRE, Principal Financial, Mutual of Omaha, AllianceBernstein and more...
Pacific Life Launches Its First SPIA
Wed, Oct 06, 2010
Pacific Income Provider offers 10 payment options, including Life with Cash Refund, inflation adjustments, and the one-time ability to increase or decrease income payments.
Allianz Life Introduces First Inflation-Protected FIA Income Rider
Wed, Oct 06, 2010
For an extra annual fee of 60 basis points, the Simple Income III Rider also offers an 8% annual roll-up of the benefit base.
Wealth2k Enhances Income Illustration Software
Wed, Oct 06, 2010
The software will solve for a “floor” of guaranteed retirement income, and can incorporate a variety of income sources in the “flooring” calculation.
Milliman Assesses Impact of Dodd-Frank Act on Insurers
Wed, Oct 06, 2010
The two biggest effects of the legislation are likely to be greater access to market for nonadmitted insurers and single-state regulation and financial reporting for reinsurance companies.
Quote of the Week
Wed, Oct 06, 2010
"The federal government is like 10,000 bugs on a log floating down a river, and every bug thinks he's steering the log."--Herman Kahn, as quoted by Marsh Carter, chairman of the New York Stock Exchange, at the RIIA annual meeting this week.
The Bucket
Wed, Oct 13, 2010
Late-breaking items about Google, Symetra Life, TIAA-CREF, New York Life, The Principal, Putnam Investments and more. . .
Vanguard’s Low Fees Get Lower
Wed, Oct 13, 2010
Someone investing $50,000 in Vanguard’s 500 Index Fund, for instance, would pay $35 a year in management fees instead of $90.
Jackson Enhances VA GWMB, adds BlackRock Fund
Wed, Oct 13, 2010
“We’ve always focused on the cafeteria-style VA product, with various withdrawal and bonus options, and we decided to extend that to the GMWB option. It’s an extension of our ‘give the rep a choice’ philosophy,” Jackson VP Alison Reed said.
For Many Investors, Ten-Year Returns Are Less Than Zero
Tue, Oct 12, 2010
“About half of U.S. equity mutual fund investors are sitting on paper losses of more than 25% even though the S&P 500 stands exactly at its 10-year average,” TrimTabs' weekly bulletin said. “This helps to explain persistent equity fund outflows despite the recent rally."
AXA Equitable Introduces Structured VA Product
Thu, Oct 21, 2010
AXA Equitable has put structured notes inside a variable annuity, giving investors tax-deferred exposure to small-cap, gold and oil indices for specific periods while capping their upside and buffering their downside.
Which Firms Connect Best with Advisors?
Thu, Oct 21, 2010
“Prudential has strengthened its grip on advisors in the variable annuity space over the past year," says Cogent Research in a study of advisor loyalty to variable annuity issuers, mutual fund companies and ETF providers.
U.K. To Raise Retirement Age, Implement National DC Plan
Thu, Oct 21, 2010
In a move that resembles the Obama administration's "auto-IRA" program for workers in companies that don't offer retirement plans, the British are hoping to jump-start middle-class savings with their National Employment Savings Trust.
U.S. Retirement System Rates a ‘Low C’: Mercer
Thu, Oct 21, 2010
Analysts at Mercer say the U.S. could improve its private pension system by, among other things, requiring that participants convert at least part of their retirement savings to an income stream.
Final Rule on 401(k) Fee Disclosure Issued
Thu, Oct 21, 2010
The 72 million participants in defined contribution plans in the U.S. are about to get more fee and expense disclosures than they'll know what to do with.
Quote of the Week
Thu, Oct 21, 2010
“We’re not trying to force all employees into annuities. We’re all about creating more opportunities for people”-- J. Mark Iwry, senior advisor in the Treasury Department, speaking at the ASPPA annual meeting in Washington this week.
The Bucket
Thu, Oct 21, 2010
Late-breaking items from Allianz Life of North America, MetLife, Nationwide Financial, Prudential and Genworth Financial.
BlackRock, SunGard to Ease Administration of In-Plan Annuity
Wed, Oct 27, 2010
SunGard is providing “a technological advancement that will help make retirement income options more readily available to DC plan participants,” said SunGard’s COO.
Morningstar Buys VA Data Business for $14 million
Wed, Oct 27, 2010
The Annuity Intelligence Report (AI Report), one of Advanced Sales’ two product lines, is a web-based service that helps render variable annuity products more understandable to broker-dealers, insurers, advisers and clients.
If More Retirees Buy Annuities, Fewer Will Be ‘At Risk’
Wed, Oct 27, 2010
It’s riskier to try to live off the interest of your savings or to use a 4% drawdown than to buy an inflation-indexed income annuity, according to a study conducted by the Center for Retirement Research at Boston College and sponsored by Nationwide Mutual.
Three Ways to Rein in the Runaway Deficit
Wed, Oct 27, 2010
Without changes in tax and spending rules, the national debt will rise from 62% of GDP now to more than 100% of GDP by the end of the decade, says economist Martin Feldstein.
Almost Four in 10 U.S. Households Hit By ‘Great Recession’
Wed, Oct 27, 2010
U.S. households generally are “not optimistic about their economic futures," Rand analysts say.
Quote of the Week
Wed, Oct 27, 2010
"The president thinks that over $250,000 is wealthy and under $250,000 isn't wealthy. I know that you don't think of $250,000 as wealthy. You feel that $250,000 means you're broke with better things" -- Andy Friedman of TheWashingtonUpdate.com, addressing executives at the IRI Conference in Chicago.
The Bucket
Sun, Oct 31, 2010
Late-breaking items about The Hartford, AARP, Ameriprise Financial, RegEd, the Insured Retirement Institute and more...
Quote of the Week
Sun, Oct 31, 2010
"This isn't a choice between chocolate and vanilla, folks. It's all Rocky Road: a few marshmallows to get you excited before the election, but with a lot of nuts to ruin the aftermath." -- PIMCO chief investment officer Bill Gross, describing an American voter's dilemma.
A Quiet Transition at Jackson Life
Mon, Nov 01, 2010
The succession of Jackson National Life CEO Clark Manning by Mike Wells (at left), a 15-year veteran at the U.S. unit of Prudential plc and the incumbent COO, is not expected to change much at the firm, which counts management continuity as a contributor to its success in the variable annuity market.
Diversified Investment Advisors Introduces In-Plan Income Option
Tue, Nov 02, 2010
DIA, a DB and DC plan provider, is partnering with Vanguard and Transamerica Financial Life Insurance to offer plan participants a stand-alone living benefit on target-date funds.
AIG’s Asset Sale and IPO Raise $36.7 Bn
Wed, Nov 03, 2010
The revenue from the transactions will help AIG pay back the Federal Reserve Bank of New York credit facility, which used taxpayer funds to bail out AIG during the financial crisis.
Uncertainty Hurts More Than QE2 Helps, Finance Pros Say
Wed, Nov 10, 2010
Weak consumer demand, uncertainty about regulatory changes, unemployment, anti-business sentiment in Washington, uncertainty about tax policy, commodity price volatility and FOREX volatility, in that order, were cited as reasons for weak private investment.
Many Plan Sponsors Puzzled by TDFs
Thu, Nov 11, 2010
Just 34% of plan sponsors responding to a Janus/Asset International poll believe target date funds are the best QDIA for their plan, down from 57% last year.
Quote of the Week
Thu, Nov 11, 2010
"Gold is at a record only if you fail to adjust for inflation. And you should almost always adjust for inflation" -- Economics columnist David Leonhardt of The New York Times, explaining that gold cost a record $2,387 (in 2010 dollars) 30 years ago.
Global Fund Flows on Pace for $850B in 2010
Thu, Nov 11, 2010
In the U.S., Strategic Insight expects 2010 full-year flows to stock and bond funds to hit $400 billion, including ETFs and funds underlying VAs.
The Bucket
Thu, Nov 11, 2010
Late-breaking items about Financial Engines, Jackson National Life, Nationwide Retirement Plans, Allianz Life of North America, Pershing, Penn Mutual Life, American Equity Investment Life, Genworth Financial, ING, Wolters Kluwer, New York Life, Fidelity and Securian . . .
Draft of Deficit Reduction Proposals Released
Thu, Nov 11, 2010
The deficit committee's modest proposal to reconsider all of the $1.1 trillion worth of annual "tax expenditures"--including the tax deferral benefit that underlies the retirement industry--worries Brian Graff, CEO of ASPPA.
Quote of the Week
Wed, Nov 17, 2010
"People tend to overestimate the utility of money and underestimate the utility of not being surprised by financial problems or not having to worry about money.” -- Steven A. Sass of the Center for Retirement Research at Boston College, author of The Promise of Private Pensions.
An Alternative Deficit Reduction Plan
Wed, Nov 17, 2010
Similar to the Bowles-Simpson proposals, the Rivlin-Domenici plan would lower income tax rates while eliminating most deductions and credits. It would replace the home mortgage and charitable contribution deductions with 15% refundable credits, and cut health care expenditures by $75 billion a year.
75-Year Financing Plan Would Stabilize Social Security: NASI
Wed, Nov 17, 2010
Covering the projected long-term shortfall facing Social Security would require revenue increases equal to slightly more than 2% of taxable payroll over the next 75 years, according to the National Academy of Social Insurance.
UK’s National DC Plan Considers Investment Options
Wed, Nov 17, 2010
“We won't be investing in a single infrastructure fund, though, or a single commodities fund, or a single high-yield fund until we get bigger,” said Mark Fawcett, CEO of the National Employment Savings Trust.
American Funds Is the Top Brand in Large Cap Funds
Wed, Nov 17, 2010
Virtually all advisors who use mutual funds include large-cap growth or value funds in their lineup; 39% use large-cap American Funds product for the growth portion and 31% for the value.
The Bucket
Wed, Nov 17, 2010
Late-breaking items from AnnuitySpecs, Pershing, ING, Jefferson National, Securian, Allianz Life and more...
Allianz Life’s new FIA features rising withdrawal percentage
Tue, Aug 02, 2011
Starting as early as age 40, the lifetime payout percentage increases by 35 basis points for every year the client delays income. There's also a 50% bonus on the interest credited every year during the accumulation period and, optionally, during the income period.
Low Rates Squeeze Fixed Annuity Issuers
Wed, Nov 24, 2010
“The current interest rate environment poses a challenge for issuers of these annuities because it pressures profitability," said Beacon Research president and CEO Jeremy Alexander.
Balances of “Consistent” 401(k) Participants Up 32% in 2009
Wed, Nov 24, 2010
But about one in five of over 20 million participants had loans outstanding at the end of 2009, up from 18% at both year-end 2008 and year-end 2007.
Health Benefit Costs Grow 3X Faster than CPI
Wed, Nov 24, 2010
The prevalence of retiree medical plans slid to its lowest point ever in 2010, with just 25% of large employers offering an ongoing plan to retirees under age 65.
Average Dutch Retirement Age Stays Level
Wed, Nov 24, 2010
The current minority government has agreed to increase the official retirement age to 66 in 2020, but has not yet passed any legislation.
‘Stretching’ the Match Raises Contribution Rates
Wed, Dec 01, 2010
Plan participants contributed more when their employer matched 25% of up to 8% of pay than when their employer matched 50% of 4% or 100% of 5%.
Hungary Nationalizes Personal DC Account Assets
Wed, Dec 01, 2010
“This is effectively a nationalisation of private pension funds. It’s the nightmare scenario,” said Dávid Németh, an economist at ING in Budapest.
EBSA Proposes Broader Fiduciary Definition for Plan Advisors
Wed, Dec 01, 2010
The proposed rule defines certain advisers as plan fiduciaries even if they do not provide advice “on a regular basis” to an employee benefit plan or to plan participants, according to the posting in the Federal Register yesterday.
Putnam Lowers Fees on Absolute Return Funds
Wed, Dec 01, 2010
The new total expense caps, which limit recurring costs such as management and service fees, were implemented retroactive to November 1, 2010, to align with the beginning of the new fiscal year of the Absolute Return Funds.
The Bucket
Wed, Dec 01, 2010
Late-breaking items from the Insured Retirement Institute, Securian Retirement, the American Bankers Association, LifeYield, National Financial, Mass Mutual and the Irish Republic...
Deficit Commission's 'Moment of Truth'
Wed, Dec 01, 2010
"After all the talk about debt and deficits, it is long past time for America’s leaders to put up or shut up. The era of debt denial is over, and there can be no turning back," says the preamble to the completed Report of the National Commission on Fiscal Responsibility and Reform, which was released today.
Advisors speak up in Curian survey
Wed, Feb 23, 2011
Eager to use their time more effectively, advisors want more functionality from their technology platforms.
Prices Rise, Benefits Shrink for America’s Most Popular VA
Wed, Dec 08, 2010
For the second time since the financial crisis, Prudential has reduced the richness of the living benefit riders on its popular Highest Daily series of variable annuities.
Details of the tax compromise revealed
Wed, Dec 08, 2010
The package would cost about $900 billion over the next two years, to be financed entirely by adding to the national debt, according to The New York Times.
Investment fees represent bulk of plan fees
Wed, Dec 08, 2010
Costs on a 100-participant plan with a $50,000 average account balance range from .57% to 1.76%, according to the 11th edition of the 401k Averages Book.
The Bucket
Wed, Dec 08, 2010
Late-breaking items about Sun Life, Genworth, J.P. Morgan, MetLife, the SPARK Institute, Fred Reish and Bosnia-Herzogovina.
St. Louis Fed president rebuts criticisms of QE2
Wed, Dec 08, 2010
James Bullard argued that QE has no impact on the longer-run U.S. fiscal outlook and that this outlook remains very poor no matter what the Fed does.
Treasury to sell last of its stake in Citigroup
Wed, Dec 08, 2010
A person briefed on the transaction said it would be priced at $4.35 a share, a 2% percent discount. At that price, taxpayers could profit by $12 billion on the Treasury’s investment in Citigroup.
UK pensioners brace for new retirement drawdown rules
Wed, Dec 08, 2010
Retirees will probably be allowed to spend their savings at the rate they wish as long as they have at least enough guaranteed income to keep themselves from needing public support in retirement.
Social Security Seeks to End Free Loans
Wed, Dec 15, 2010
“The agency is changing its withdrawal policy because recent media articles have promoted the use of the current policy as a means for retired beneficiaries to acquire an ‘interest-free loan,’” according to the agency.
E&Y offers four keys to success for life insurers
Wed, Dec 15, 2010
Life insurers "are expected to increase the ease of doing business through investments in technology and lower their resource costs through shared services, offshore captives and outsourcing," an Ernst & Young whitepaper said.
Phoenix issues “Medicaid annuity”
Wed, Dec 15, 2010
A Medicaid annuity allows a couple to zero out its assets, qualify for subsidized long-term care for the ill spouse and provide an income for the non-institutionalized spouse by putting money in a particular type of SPIA.
The Bucket
Wed, Dec 15, 2010
Late-breaking items from Guardian, New York Life, Milliman, ING, Principal, Allianz Life, EBRI, MassMutual and more...
Boomers’ Inheritance Estimated at $8.4 Trillion
Wed, Dec 15, 2010
A study conducted by the Center for Retirement Research at Boston College for the MetLife Mature Market Institute estimates the median inheritance per person at $64,000. $2.4 trillion has already been received.
The Bucket
Wed, Dec 22, 2010
Late-breaking items from AXA Equitable, Lincoln Financial, MFS, Transamerica, Aon Hewitt, Principal Financial, Ernst & Young and more...
HR 4337 modernizes tax code treatment of investment firms
Tue, Dec 21, 2010
A new white paper from Wolters Kluwer Law & Business details the elements of the law.
New Tax Relief Bill Summarized by FPA, CCH
Tue, Dec 21, 2010
The payroll tax holiday alone is estimated to inject $120 billion into the economy in 2011.
Pimco allows equities investments in Total Return bond fund
Wed, Dec 22, 2010
The move follows concern that the long running bull market in bonds is in bubble territory and that inflation and economic growth will damage future returns, according to a report in IPE.com.
SEC seeks comments on credit rating standardization
Tue, Dec 28, 2010
The SEC is conducting a study, required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, to investigate the feasibility and desirability of standardizing credit rating methods and terminology.
Of apples, oranges and unemployment rates
Tue, Dec 28, 2010
“Among individuals predicted to be at highest risk of being unemployed, a one percentage point increase in the resident state's unemployment rate is associated with a 2-8% reduction in the consumption of fruits and vegetables," researchers said.
For capital gains tax, the “honor system” ends January 1
Tue, Dec 28, 2010
Before the new rule, the government didn’t have a way to verify if an investor was reporting the true gain on a sale unless there was an audit, said an Ernst & Young tax partner.
High popularity, low penetration augur well for ETF growth
Tue, Dec 28, 2010
Research from Mintel shows that more than six in 10 investors—including high income investors--say they don’t invest in ETFs simply because they “don't know what they are.”
SPARK Institute starts data project for non-registered plan investment options
Tue, Dec 28, 2010
The new standards will help the providers share the comparison chart information electronically with one another and with existing investment information aggregators, the institute says.
Boomers May Regret Payroll Tax Holiday: Op-Ed
Tue, Dec 28, 2010
If made permanent, a new Social Security ‘payroll tax holiday,’ reducing the ‘match’ employers pay from 6% to 4% of salary, will drop the solvency of the program 14 years, from 2037 to 2023, two policy experts say.
States Have Mandate, But Not Money, To Oversee Mid-Sized Advisors
Tue, Jan 04, 2011
California, Florida, New York and Texas will account for 35% of all the advisory firms switching over to state regulation, according to National Regulatory Services, a Connecticut consulting firm.
Bank of America Settles Fannie-Freddie Claims
Tue, Jan 04, 2011
The agreements center on loans that Countrywide Financial, which was purchased by Bank of America in 2008, sold to the two agencies.
Swiss Re completes first longevity trend bond
Tue, Jan 04, 2011
The bond, which is based on population data, would trigger in the event of a large divergence in the mortality improvements experienced between men aged between 75 and 85 in England & Wales and men aged 55-65 in the US.
Despite Aging Workforce, Japan Turns Young Immigrants Away
Tue, Jan 04, 2011
By 2055, more than one in three Japanese will be over 65, as the working-age population falls by over a third to 52 million.
Financial Engines to announce retirement income program
Wed, Jan 12, 2011
The presentation will begin at 12:30pm ET, January 31. Investors and interested parties can access this presentation by visiting the Company’s investor relations website.
National Life Group adds income option to IUL products
Wed, Jan 12, 2011
If the policy owner is between ages 60 and 85 and the policy has been in force for at least 15 years, and the policy has sufficient value independent of any outstanding loans, the owner can exercise the rider and receive a lifetime income stream.
Prudential’s Q-class fund shares offer fee transparency
Wed, Jan 12, 2011
Eligible plans, including 401(k) and 403(b) plans, among others, can convert their current holdings in another share class of a Prudential fund to the fund’s Class Q shares.
Poland mixes politics with pensions—with mixed results
Wed, Jan 12, 2011
Polish workers pay 19.5% of taxable income into the mandatory pensions system, of which 12.2% goes into a plan like our Social Security and 7.3% goes into privately-run DC plans. Starting this year, much of the 7.3% will go to a government-run DC plan instead.
Health spending grew less rapidly in 2009
Wed, Jan 12, 2011
Health spending rose only 4% in 2009 to $2.5 trillion, or $8,086 per person, down from 4.7% in 2008. Consumers spent $299.3 billion out-of-pocket on health care, up 0.4%.
Many Americans unprepared for health expenses in old age
Wed, Jan 12, 2011
More than one-third of Americans ages 45 to 70 are worried about running out of money during retirement, but only 20% plan to purchase any form of guaranteed lifetime income.
VA from Fidelity and MetLife marks $1 billion in sales
Wed, Jan 12, 2011
MGGI simplifies the investment option selection for the customer by offering a single fund, the Fidelity VIP FundsManager 60% Portfolio, which uses an asset allocation approach to achieve exposure to multiple asset classes.
The Bucket
Tue, Jan 18, 2011
Late-breaking briefs about AXA Equitable, Prudential Financial, Principal Financial, MassMutual, Securian, TIAA-CREF and FINRA.
BMO Offers Non-Insured Lifetime Income Product
Wed, Jan 19, 2011
The Bank of Montreal's Lifetime Cash Flow product pays out 6% of principal per year for life after a 10-year deferral period. After-tax principal is paid out tax-free for 15 years, followed by taxable payments.
U.S. Treasury now owns AIG
Wed, Jan 19, 2011
“We continue to believe [taxpayers] will realize a profit on their investment in AIG,” said Robert H. Benmosche, AIG president and CEO.
BNY Mellon study notes funding pressures on US retirement plans
Wed, Jan 19, 2011
A DC/DB hybrid plan may be the best solution for employers and employees if employer costs can be controlled, a study by the firm's Asset Servicing division found.
2010 saw modest gains in global pension funding: Aon Hewitt
Wed, Jan 19, 2011
The analysis found that the funded status of global pension plans were 87% at the end of 2010, up slightly from 86% at the beginning of the year.
Most Investors Understand TDFs: Vanguard
Thu, Jan 20, 2011
But Vanguard's newly published survey also showed that only 62% of its DC plan participants who own TDFs have heard of a TDF, and only 24% know that the asset allocation changes after the target date.
Prudential updates ‘Highest Daily’ living benefit
Wed, Jan 26, 2011
Prudential is reducing the size of the roll-up guaranteed by its top-selling Highest Daily Lifetime variable annuity rider to 5% per year until the first withdrawal from 6% per year.
Annuity income drops at five of top 10 bank holding companies
Wed, Jan 26, 2011
Wells Fargo, Morgan Stanley, JPMorgan Chase and Bank of America led bank holding companies in annuity commission income through Sept. 30, 2010, combining for almost 60% of the year's income.
Morningstar VA bulletin looks back at 2010, ahead to 2011
Wed, Jan 26, 2011
"More generous benefits" anticipated in 2011, according to Morningstar vice president Kevin Loffredi.
Poland’s pension makeover offers a cautionary tale
Wed, Jan 26, 2011
In the 1990s, Poland reformed its Social Security-type system and introduced personal accounts. Now they’ve got chaos.
BMO 'Lifetime Cash Flow' Product Critiqued
Wed, Jan 26, 2011
Garth Bernard responds to last week's RIJ article on the Bank of Montreal's Lifetime Cash Flow product, saying the product has 'room for improvement.'
Rule 408(b)(2) delayed until 2012
Wed, Feb 16, 2011
“We now believe plans and plan service providers would benefit from an extension of the rules applicability date,” said assistant Labor Secretary Phyllis Borzi in a statement.
Fidelity to help participants move to income stage
Thu, Feb 03, 2011
Among other things, the Fidelity Income Strategy Evaluator illustrates the trade-offs of a variety of income-generating portfolios, which may include stocks, bonds, cash and/or annuities.
GuidedChoice rolls out its participant income roadmap
Thu, Feb 03, 2011
"GuidedSpending was designed to replace the overly simplistic ‘4% rule’ approach long used by financial planners," said GuidedChoice in a release.
JP Morgan Hedges U.K. Workers’ Longevity Risk
Thu, Feb 03, 2011
If the life expectancy of its pensioners improves at a greater rate than specified in the contract, the Pall UK Pension Fund receives an insurance payout from JP Morgan.
“Impatience” helps explain failure to save, researchers say
Thu, Feb 03, 2011
When it comes to saving for retirement, the ability to delay gratification seems to matter as much or more than the ability to understand investment concepts.
Video: How John Hancock Simplifies Annuities
Tue, Feb 08, 2011
Tom Mullen, vice president of marketing, John Hancock Annuities, explains that his firm's simple VA contract fell flat, but that other efforts at simplification have worked. Recorded at IRI Marketing Conference.
Video: How Edward Jones Simplifies Annuities
Wed, Feb 09, 2011
Tim Burke, principal, Insurance Solutions, at Edward Jones, explains how switching exclusively to a new "O" share VA contract will make the annuity sale easier. Recorded at IRI Marketing Conference.
What the ‘Lifetime Income Disclosure Act’ may mean for you
Wed, Feb 09, 2011
The bill would require benefit statements to include the annuity equivalent of an employee’s benefit, while providing a "clear path to avoid liability."
Morningstar introduces ETF analysis tool
Wed, Feb 09, 2011
The new tool will measure tracking error, estimated holding cost, market impact cost, and portfolio concentration.
Furor in Netherlands over cause of pension losses
Wed, Feb 09, 2011
A Dutch TV program accuses the country's pension fund managers of over-weighting equities for the past two decades.
December hedge fund inflow “bullish”: TrimTabs
Wed, Feb 09, 2011
“While the S&P 500 still sits about 8% south of its year-end 2007 level, our Hedge Fund Index is up about 8%," said Vincent Deluard of TrimTabs.
Big gender discrepancy in UK savings
Wed, Feb 09, 2011
British women have a median balance of just £9,100 ($14,620) in their defined contribution “pension pots,” while men have a median balance of £52,800 ($84,820).
A UK white paper compares public pension funds to Ponzi schemes
Wed, Feb 16, 2011
In a new think tank report, a former JP Morgan banker and Towers Watson consultant suggested that unfunded DB pensions in the U.K. should be closed by 2020 and replaced with "nominal DC schemes."
UBS, State Street and BlackRock to manage NEST money
Wed, Feb 16, 2011
Britain’s National Employers Savings Trust Corporation is hiring the three asset managers to handle portions of the new state-sponsored, employer-based defined contribution plan.
US stock & bond mutual funds receive $34bn in January
Wed, Feb 16, 2011
An estimated $21 billion in net new cash went into US equity funds in January 2011, making it the first month of net inflows to those funds since last April.
Wealth2k offers free LTC presentation to advisors
Wed, Feb 16, 2011
“The movie will make it easier for advisors to broach the issue of planning for the costs of long-term care,” said Wealth2k CEO David Macchia.
A Q&A about GuidedSpending 2.0
Wed, Feb 16, 2011
In an e-mail, GuidedChoice CEO Sherrie Grabot and CIO Ming Wang answered a few of RIJ’s questions about their income planning tool for plan participants.
New Barclays Capital index enables policy arbitrage
Wed, Mar 09, 2011
“The spread between European and US short-term rates... presents the possibility of extracting value,” said Jose Mazoy, Director, Index Portfolio and Risk Solutions at Barclays Capital.
Transamerica Launches New VA Income Rider
Wed, Feb 23, 2011
Under certain conditions, the rider can offer a step-up and a roll-up during the first 10 years, providing "growth on growth" potential.
Illinois to bolster state pension with new borrowing—Again
Wed, Feb 23, 2011
A similar strategy backfired in 2003, when the state tried to fund its pension by borrowing $10 billion at 5.1%. It earned 3% on the proceeds, instead of the promised 8%.
Growth Spurt for VAs in Q4 and 2010: LIMRA
Wed, Feb 23, 2011
The stock market rally drove a double-digit rise in VA sales in the fourth quarter of 2010. Index annuities had another record year, but other fixed annuities suffered.
Pension Debate Roils Japan
Mon, Feb 28, 2011
In January, the ruling party suggested that the public pension should be funded with payroll deductions, and that there should be a taxpayer-funded guaranteed minimum benefit of ¥70,000 ($860) per month for the poor.
Origins of ‘Obamacare’ Revealed
Wed, Mar 02, 2011
The concept of the individual health insurance mandate originated in 1989 at the conservative Heritage Foundation, according to the website Procon.org.
Sun Life Financial unveils VA for new LPL platform
Wed, Mar 02, 2011
Sun Life is one of only five VA issuers with products on the new Fee-Based Variable Annuity (FBVA) Platform set up by broker-dealer LPL Financial.
Public pension funding crisis widespread: Cogent
Wed, Mar 02, 2011
A majority (54%) of public pensions report their current funding status to be below 80%, including 16% that are below 60%.
Phoenix in FIA sales pact with eight IMOs
Wed, Mar 02, 2011
The wholesaling unit of Phoenix is developing a retirement planning program that provides formats for group and individual discussions between producers and clients.
AXA Equitable releases latest “Retirement Reality Show”
Wed, Mar 02, 2011
"In Doubt We Trust?" extends the company's video series exploring the attitudes of Americans as they prepare for and live through retirement.
Lincoln Financial expands DC wholesale effort
Wed, Mar 02, 2011
Douglas Harding and Troy Jackson have joined Lincoln Financial Distributors as regional sales directors.
Rising oil prices, vanishing stimulus worry hedge fund managers
Wed, Mar 09, 2011
The level of the S&P 500 and the size of the Fed’s balance sheet have a plus-88.4% correlation since QE1 started in March 2009, said TrimTabs.
Security Benefit issues first post-crisis annuity
Wed, Mar 09, 2011
The new FIA's optional GLWB provides a compounded roll-up in the benefit base of 8.2% for each year the client defers income, for 10 years or until age 85, whichever comes first.
FIAs and SPIAs shine in a let-down year for fixed annuities: Beacon Research
Wed, Mar 09, 2011
“Consumer demand for conservative investments with guarantees continues to be strong,” Beacon Research CEO Jeremy Alexander said. “We expect fixed annuity sales growth to resume when the rate environment becomes more favorable.”
No sex please, we're British
Wed, Mar 09, 2011
A high court in Britain has apparently barred U.K. insurers from using gender as a factor in calculating insurance rates, including payout rates for retail income annuities. One expert observer predicted "unintended consequences."
The Bucket
Wed, Mar 09, 2011
Late-breaking items and briefs from Ernst & Young, Charles Schwab, Scarborough, Symetra, MassMutual, Lincoln Financial, Fidelity and Jackson National.
Americans anxious about retirement, new surveys show
Tue, Mar 15, 2011
More than half of workers say they have less than $25,000 in total savings and investments, excluding their homes.
30% of employers to restore matching contributions in 2011
Tue, Mar 15, 2011
But the survey also showed that 57% of DB plan sponsors had frozen their plans to new entrants.
Millionaires’ attitudes, a leading indicator, are pointing up
Tue, Mar 15, 2011
Some millionaires need only $1.75 million in investments to “feel wealthy," but 42% won’t feel wealthy until they have $7.5 million, a Fidelity survey found.
Stocks Due for an Upturn, says CRR
Wed, Mar 16, 2011
Even if GDP growth remains low, corporations can use stock repurchases to boost the growth of their stock prices to match past rates of appreciation, say researchers at the Center for Retirement Research at Boston College.
U.S. Insurance M&A Rebounds in 2010
Wed, Mar 16, 2011
Conning Research reports that transactions increased 36% and deal value increased 224%, reversing a five-year decline.
China outlines Social Security Fund expansion
Wed, Mar 16, 2011
The SSF, which was established in 2000 and receives a statutory 10% of the proceeds of all IPOs by Chinese state-owned enterprises (SOEs), is the largest pension fund investor in China.
Domestic non-financial debt level now $36.3 trillion
Wed, Mar 23, 2011
The bad news: America’s households owe even more than the federal government does. The good news: U.S. household net worth—assets minus liabilities--is almost $57 trillion.
Many advisors overlook rollovers: Cogent
Thu, Mar 24, 2011
Outside of Lake Wobegon, not all advisors are above average—especially when it comes to success in capturing rollover money.
The Bucket
Thu, Mar 24, 2011
Late-breaking or short items from Mutual of Omaha, EBRI, Jackson National Life, Nationwide Financial, and Principal Financial.
CIO who timed real estate market for MetLife becomes its CEO
Thu, Mar 24, 2011
MetLife named Steven Kandarian as its new president and CEO. In 2006, as CIO, he divested MetLife's aging Manhattan apartment complexes for $5.4 billion. They are now valued at $1.8 billion.
State pension reform may undermine Britain’s DB plans
Wed, Mar 30, 2011
Britain's plan to simplify the state pension to a single-tier plan could hurt private DB plans by ending "contracting-out," the practice of substituting contributions to a private plan for contributions to the second state plan.
Vanguard announces active, multi-manager emerging markets equity fund
Wed, Mar 30, 2011
The Vanguard Emerging Markets Select Stock Fund is expected to have an expense ratio of 0.95%, a $3,000 minimum and a 2% redemption fee on shares held less than 60 days.
The Bucket
Tue, Mar 29, 2011
Brief or late-breaking items from Janus, ING, AXA Equitable Life, Morningstar, eRollover, Curian Capital and TrimTabs.
Morningstar gives just six fund families an “A” for stewardship
Wed, Mar 30, 2011
The results of Morningstar's 2011 Mutual Fund Stewardship Grade Research Study are in.
Corporate pension funded status improved by $12.4 billion in 2011: Milliman
Wed, Mar 30, 2011
Last August, falling interest rates drove up the projected benefit obligation and resulted in a record deficit for the 11-year history of the Milliman Pension Funding Study.
Events that may interest you
Wed, Mar 30, 2011
The Retirement Industry Conference is coming up soon, to be followed by several other events that RIJ readers might want to attend.
The Bucket
Wed, Apr 06, 2011
Brief or late-breaking items from AXA Equitable, Lincoln Financial Group, Bankers Life, FundQuest, Principal Financial and Securian.
How to solve Social Security’s solvency problem
Wed, Apr 06, 2011
Alicia H. Munnell, director of the Center for Retirement Research at Boston College, made her recommendations in an op-ed piece in the New York Times this week.
Retirement confidence low, survey shows
Wed, Apr 06, 2011
The percentage of workers not at all confident about having enough money for a comfortable retirement has grown to 27%, the highest level measured in the 21 years of the Retirement Confidence Survey.
Hedge fund managers bearish on U.S. equities and Treasuries
Wed, Apr 06, 2011
“While hedge fund managers remain bearish, hedge fund investors are showering them with fresh cash,” said Sol Waksman, founder and President of BarclayHedge.
Republican budget manifesto released
Wed, Apr 06, 2011
The top individual and corporate tax rate would drop to 25% from 35% under the "Path to Prosperity" proposal written by House budget committee chairman Paul Ryan (R-WI).
What Advisors Say About Wholesalers, Etc.
Sun, Apr 10, 2011
"Keep the golf balls, umbrellas, coffee mugs, etc., and provide as much info, training and current ideas as possible." That's one advisor's anonymous comment about annuity wholesalers in the recent survey by Howard Schneider (left) and Dennis Gallant.
Economy improving amid anxiety about end of QE2: TrimTabs
Mon, Apr 11, 2011
“Our real-time data already shows that wage and salary growth accelerated sharply in March,” said Madeline Schnapp, Director of Macroeconomic Research at TrimTabs.
The Bucket
Mon, Apr 11, 2011
Brief or late-breaking items from Prudential Investments, Putnam Investments, New York Life, and PulteGroup, the homebuilder.
Polish president signs new pension laws
Mon, Apr 11, 2011
Poland's deteriorating public finances back in late 2010 drove the changes. The budget deficit is estimated at 7.9% of GDP for 2010.
New York Life plans deferred income annuity for July
Mon, Apr 11, 2011
A retiree or advisor could use such a product to reduce or eliminate the longevity risk associated with a traditional uninsured systematic withdrawal plan.
After 2010, nowhere to go but up for fixed annuities
Mon, Apr 11, 2011
“The current interest rate environment suggests that fixed annuity sales in banks will gradually increase in 2011,” said Jeremy Alexander, president and CEO of Beacon Research.
Aspen Institute to host retirement discussion
Wed, Apr 13, 2011
The 90-minute roundtable will be held at noon, Friday, April 15, in Washington, D.C, and will feature Mark Iwry of the Treasury Department of Michael Davis of the Labor Department.
Financial system a 'con game,' says economist
Wed, Apr 20, 2011
An ideal pension system would be based on an annual contribution of 8% of wages to a government-run index fund, said Laurence Kotlikoff of Boston University.
401(k) assets top $3 trillion: SPARK
Wed, Apr 20, 2011
We often hear that Americans don't save, but their collective retirement savings are worth about $16 trillion, according to research by RG Wuelfing & Associates, Inc. for the SPARK Institute.
DTCC enhances Licenses & Appointments service
Wed, Apr 20, 2011
The changes, which are intended to help centralize the verification of completed mandated training, will roll out later this month.
Equity funds see outflows in March: Morningstar
Wed, Apr 20, 2011
Among U.S. stock funds, large-cap offerings lost about $3.2 billion across the value, blend, and growth categories, while small-cap funds enjoyed modest inflows of $791 million.
The Bucket
Wed, Apr 20, 2011
Brief and late-breaking items from AXA Equitable Life, Prudential, MassMutual, Northwestern Mutual and The Derivative Project.
One-third of HNW investors have itch to change advisors
Wed, Apr 27, 2011
Investors under age 45 are keeping more than 40% of their money in cash or cash equivalents, according to a new survey by Northstar Research Partners and Sullivan, a communications strategy and design firm.
Average annual cost of private nursing home room: $85,775
Wed, Apr 27, 2011
You can save more than $10,000 a year by sharing a room with someone else, according to the 2011 Cost of Care survey by John Hancock Financial.
New technology offers to help plan advisors meet fee disclosure rules
Wed, Apr 27, 2011
The AXIS Retirement Plan Analytic Platform is designed to service all retirement plan types through a single web-based interface and data repository, according to the manufacturer, Castle Rock Innovations.
New Symetra FIA tracks equities and/or commodities indices
Wed, Apr 27, 2011
The product offers point-to-point and monthly average interest crediting methods, and five account options: S&P 500 Point-to-Point, S&P 500 Monthly Average, S&P GSCI Point-to-Point, S&P GSCI Monthly Average and Fixed Account.
Pershing positions itself as source for retirement-oriented advisors
Wed, Apr 27, 2011
The global clearing-and-execution firm and BNY Mellon unit has set up a website, Retirement PowerPlay, to help advisors "grow their retirement businesses” and has published a call-to-arms entitled, "The Secret Knock."
New MetLife GMIB Offers 6%
Wed, May 04, 2011
In 2010, MetLife sold about $18.3 billion worth of variable annuities, of which about two-thirds have the GMIB option.
Financial services M&A to accelerate in 2011: PwC US
Wed, May 04, 2011
Divestitures should drive a significant portion of deal activity in 2011, PwC said. Large banks and insurance companies that need to bolster capital levels are divesting non-core operations and margin-dilutive subsidiaries.
The Bucket
Wed, May 04, 2011
Brief or late-breaking items from DST Systems, Senior Market Sales, Conning Research, BNY Mellon, Mutual of Omaha, Mesirow Financial, ASPPA, Lockton Retirement Services, Huntington Investment Co., Allianz Global Investors and Putnam.
The Bucket
Tue, May 10, 2011
Brief or late-breaking news from Lincoln Financial, Allianz Life, Prudential, Mutual of Omaha, BNY Mellon, Nationwide, New York Life and AXA Equitable.
Insurance executive responds to WSJ critique of income annuities
Tue, May 10, 2011
His firm's "temporary life annuities" offer a remedy to some of the perceived shortcomings of income annuities that were mentioned in a May 1 Wall Street Journal article, says Gary S. Mettler, vice president at Presidential Life.
VA issuers dodged a bullet in 2008-2009, study shows
Tue, May 10, 2011
Had owners of deep-in-the-money variable annuity living benefits acted more "rationally" at the depth of the financial crisis, the issuers of those contracts might have suffered much more serious losses.
Lincoln Financial restructures its Insurance and Retirement Solutions business
Thu, May 12, 2011
The new design “simplifies the structure of the businesses and increases the responsibilities of the senior leaders and their respective teams,” the company said in a release.
VA Update from Ernst & Young
Wed, May 18, 2011
Leading up to the May 1 deadline for contract changes, issuers continued to tinker with every aspect of their contracts--to reduce overall risk and to align their compensation formulas with advisor preferences.
Social Security trustees issue annual report
Wed, May 18, 2011
The Social Security and Disability Insurance trust funds may be a figment of accounting, but the funds' trustees continue to calculate the changes in payroll tax rates and/or benefit levels that would keep the funds solvent until the last surviving Boomer reaches age 121.
Dollar to share power with euro and renminbi by 2025: World Bank
Wed, May 18, 2011
The growth of emerging-market firms in global investment and finance will bring "the sort of multilateral framework for regulating cross-border investment that has been derailed several times since the 1920s," the bank's report said.
Many job-changers unsure what to do with savings: Fidelity
Wed, May 18, 2011
Separately, the Boston-based firm reported that the average 401(k) balance rose to $74,900 at the end of 1Q 2011, an all-time high since Fidelity began tracking balances in 1998.
The Bucket
Wed, May 18, 2011
Brief or late-breaking news from New York Life, Bankers Life and Casualty, F-Squared Investments, AnnuitySpecs and National Planning Holdings.
Anxiety and distrust are common among Boomer participants: Financial Engines
Wed, May 25, 2011
A new white papers shows that plan participants want flexibility, safety, advice, sponsor oversight and fee transparency from financial products and service providers.
The Bucket
Wed, May 25, 2011
Brief or late-breaking items from DST, Lincoln Financial, Symetra and Prudential.
Auto-enrollees save less, Aon Hewitt study shows
Wed, May 25, 2011
A survey suggests that not all is rosy in 401(k) land. At 120 large plans, the median account balance is under $25,000, 30% of participants have loans, and 3-year annualized returns are under 2%.
Downtick in GLB elections: LIMRA
Wed, May 25, 2011
Year-over-year, the election rate fell by one percentage point, to 86%, in the first quarter of 2011 for all types of guaranteed living benefits.
A quarter of Americans couldn’t find $2,000 in 30 days, study shows
Wed, May 25, 2011
Generally, low levels of ability to access $2,000 on short notice correlated with low income. But the researchers were also surprised to see so many high-income households without $2,000 readily at hand.
Taxes deferred aren’t taxes denied: ASPPA
Tue, May 31, 2011
In their attacks on retirement savings incentives, 'budget hawks' don't appear to realize that 401(k) participants and others pay the deferred taxes after they retire, albeit sometimes at a lower tax rate.
Unbundle advice and product sales, older investors say
Tue, May 31, 2011
Chris Brown and Laura Varas (left) of Hearts & Wallets, a Boston-area research firm, find that many pre-retirees and retirees want financial advice that's not simply the prelude to a product sale.
Structured product from AXA Equitable blends upside potential, downside protection
Wed, Jun 01, 2011
Called Structured Capital Strategies ADV, the product will be distributed at first to fee-based advisors in the Commonwealth Financial Network.
New York Life launches GPA (It doesn’t mean grade point average)
Tue, May 31, 2011
Smaller defined benefit pension plans are adopting a liability-driven investment model that resembles the three-bucket system used by retirees to provide income. New York Life has designed a fixed income option for the first bucket.
Public doesn’t trust Wall Street, Prudential survey shows
Wed, Jun 01, 2011
People need financial help, but avoid financial services providers. Is it possible that they blame the industry itself for their financial woes?
SPARK accepting requests to change lifetime income product data standards
Wed, Jun 01, 2011
The SPARK Institute's Data Layouts for Retirement Income Solutions provides the standards for DST Systems' RICC hub featured in today's issue of RIJ.
Fed governor details rationale for higher capital standards for “SIFIs”
Sun, Jun 05, 2011
Regulations should limit the creation or growth of giant financial institutions unless the “benefits to society are clearly significant,” said Daniel Tarullo.
BNP Paribas and Tennis: Love Match
Tue, Jun 07, 2011
The French bank has sponsored the French Open for 38 years and in March launched a website called "We Are Tennis."
Russell LifePoints TDFs Tops $1 billion AUM
Wed, Jun 08, 2011
The series’ 2055 fund, for instance, has a 10% bond allocation, while the In Retirement Fund maintains a 68% bond allocation throughout retirement.
Jackson National closes five equity funds to VA separate account investors
Wed, Jun 08, 2011
With a May 31 SEC filing, the company has apparently made good on its parent company's promise to de-risk the equity exposure of its top-selling variable annuity. The changes will take effect August 29.
Beams to help merge ING retirement units in advance of IPO
Wed, Jun 08, 2011
Maliz Beams previously served as president and CEO of TIAA-CREF’s Individual and Institutional Services, where she founded the Wealth Management business and re-launched IRAs, Insurance Products and Private Asset Management.
Putnam’s iPhone “app” puts point-of-purchase savings into 401(k)
Wed, Jun 08, 2011
First, find a bargain. Then calculate its value 30 years from now. Then contribute to retirement plan.
In Italy, annuity demand correlates with wealth and education
Wed, Jun 08, 2011
Italians were asked: ‘Imagine you are 65-years old and will receive an inflation-adjusted pension of €1,000 a month. Would you give up that half of that pension in exchange for an immediate lump sum of €60,000? Of €80,000? Of €100,000?’
TIAA-CREF, CFDD create network of RIAs for participant services
Wed, Jun 08, 2011
The Advisor Network will provide participants with access to a pre-screened network of qualified investment advisors who provide participant-level advice at "an investment advisory fiduciary standard of care."
Milliman’s annual VA survey analyzes rider exercise rates, lapse rates
Thu, Jun 16, 2011
Lifetime withdrawal benefit exercise rates rose with in-the-moneyness and age of contract owners, according to Milliman's survey of 18 variable annuity issuers, including 11 top-20 issuers.
Wolters Kluwer weighs in on Supreme Court’s Janus decision
Thu, Jun 16, 2011
In its 5-4 decision on Janus Capital Group, Inc. v. First Derivatives Traders, a lawsuit first filed in 2003, the high court held that liability for allegedly misleading statements in Janus' mutual fund prospectuses did not extend to the funds' investment advisers.
The Hartford enhances VA suite
Thu, Jun 16, 2011
The product enhancements are part of a series of investments The Hartford is making in its annuity business in recent months, the company said.
Fund flows decline again in May; ETFs see outflow: Morningstar
Thu, Jun 16, 2011
U.S. stock funds recorded their first significant outflows of the year, as the asset class lost $4.5 billion in May.
New York Life’s new annuity ad campaign targets wirehouse advisors
Thu, Jun 16, 2011
“The campaign is meant to reinforce the thinking validated by academics, that income annuities are a valuable asset class for retirement portfolios," said Steve Fisher, chief marketing officer for Retirement Income Security at New York Life.
The Bucket
Thu, Jun 16, 2011
Brief and late-breaking items from Vanguard, the MetLife Mature Marketing Institute, Lincoln Financial Group and eRollover.
Fixed annuities from three small insurers make Barron’s “smart” list
Tue, Jun 21, 2011
While smaller than most of the other 15 companies on the list (see today’s Data Connection), Life Insurance Co. of the Southwest, Royal Neighbors of America and The Standard have strong ratings--and a whiff of counter-culture about them.
RBC Wealth Management ranks first in "satisfaction" survey
Wed, Jun 22, 2011
The annual J. D. Power and Associates U.S. Full Service Investor Satisfaction Survey also found that most people don't understand the difference between the "fiduciary" and "suitability" standards of advisor conduct.
Your financial crisis is different from my financial crisis
Wed, Jun 22, 2011
New research from Olivia S. Mitchell of Wharton’s Pension Research Council et al shows that financial crises are felt differently by the young and the old, and by those who either suffer “triple whammys” or are “doubly fortunate.”
The Bucket
Wed, Jun 22, 2011
Brief and late-breaking items from DTCC, Fidelity, MetLife, Charles Schwab, Strategic Insight, PLANSPONSOR, Sun Life Financial, Lincoln Financial Distributors, John Hancock and Retirement Plan Advisory Group.
Vanguard issues annual DC report
Wed, Jun 22, 2011
"How America Saves," now in its 10th edition, is a compilation of data from Vanguard's 2,000 defined contribution plans, which cover three million participants with about $400 billion in assets.
The Bucket
Wed, Aug 03, 2011
Brief or late-breaking items from New York Life, MetLife, Lincoln Financial Group, Still River, Huntington Funds, Weiss Ratings, MassMutual, Fidelity, and Cerulli Associates.
DALBAR announces fiduciary designation for 401(k) advisors
Wed, Jun 29, 2011
The 401(k) RFTM Designation is awarded to designees who after training and testing prove to be fluent in the language and regulations of ERISA.
Eleven Million Millionaires Worldwide
Wed, Jun 29, 2011
About 40,000 Americans have investable assets of $30 million or more, according to the 15th annual World Wealth Report from Merrill Lynch and Capgemini.
![Mind the [Retirement] Gap](http://retirementincomejournal.com/image/68730/mind-the-retirement-gap?max_width=100&max_height=1000&q=70)
Mind the [Retirement] Gap
Wed, Jun 29, 2011
Of those who expect to need 75%-100% of their pre-retirement salary in retirement, less than a third had enough savings to generate this income, according to J. P. Morgan's .
“New normal” mindset pervades Boomers: Allianz Life
Wed, Jun 29, 2011
When asked which is more attractive, an investment paying a 4% guaranteed return or one with 8% return subject to market risk and loss of principal, 76% chose the guaranteed product.
Mercer in deal with Financial Engines, HelloWallet and TD Ameritrade
Wed, Jun 29, 2011
The three new services will be added to Mercer's benefits administration platform.
Lonelier at the Top
Tue, Jul 05, 2011
Prudential, MetLife and Jackson National, which have dominated sales since the VA industry's post-crisis shake-out, all added to their market share in the first quarter of 2011, according to Morningstar's quarterly VA report.
U.S. retirement assets hit $18 trillion again: ICI
Wed, Jul 06, 2011
The value of annuity assets held outside retirement plans was $1.637 trillion in 1Q 2011, its highest point since the third quarter of 2007, according to the ICI Retirement Industry Report.
GAO paints a broad view of America's retirement challenge
Tue, Jul 05, 2011
A new report from the General Accounting Office shows, among other things, that delaying Social Security can be cheaper than taking it early and making up the difference with an income annuity.
Are the asset allocation models used in 401(k) plans subject to DoL disclosure requirements?
Wed, Jul 06, 2011
Probably, says ERISA expert Fred Reish--but not if the model is managed by a 'discretionary fiduciary.'
The Battle of the Sexes, Retirement Planning Division
Wed, Jul 06, 2011
The latest Fidelity poll of older married couples suggests that their pillow talk rarely includes retirement matters.
Couples readier for retirement than singles: RAND
Wed, Jul 13, 2011
A 30% reduction in Social Security benefits would reduce the percentage of married people who are adequately prepared for retirement by 7.8 percentage points and the percentage of single people by 10.7 percentage points, two RAND economists found.
Variable annuity filings: Jan-June 2011, from Beacon Research
Tue, Jul 12, 2011
Here's a hyper-linked list of variable annuity prospectuses filed with the SEC from January 1 to June 30, 2011. The list was provided by Chicago-based Beacon Research, host of annuitynexus.com
Actuary to Congress: Raise SS retirement age
Wed, Jul 13, 2011
Even in 1940, however, men who reached age 65 had an average life expectancy of 12.7 years—meaning that half lived longer than that. (Albus Dumbledore was nearly 116 years old when Severus Snape killed him.)
Austria urged to thwart early retirement
Wed, Jul 13, 2011
Though Austria’s statutory retirement ages are 65 for men and 60 for women, Austrian men retire at age 58.9 on average while women retire at age 57.5 on average.
The Bucket
Wed, Jul 13, 2011
Brief or late-breaking items from Morningstar, Milliman, Vanguard, Allianz Life, Great-West Retirement Services and MassMutual.
Voters of all stripes want Wall Street swept clean
Tue, Jul 19, 2011
A poll sponsored by AARP and others found that 83% of Democrats, 73% of independents and 68% of Republicans favor a single federal agency dedicated to protecting consumers from financial fraud and misconduct.
Wells Fargo leads banks in annuity sales
Mon, Jul 18, 2011
Ten large bank holding companies accounted for about $563 million or more than 64% of the $748.2 million in bank annuity income in the first quarter.
One in five 401(k) participants has no outside savings: Fidelity
Mon, Jul 18, 2011
But nearly one in 10 corporate defined contribution participants increased their contribution rate during the first quarter of 2011, the largest percentage to do so since Fidelity started tracking the figure in 2006.
Death rates vary by gender, ethnicity and location
Mon, Jul 18, 2011
Though widely feared, Alzheimer’s disease was officially blamed for only seven percent of deaths among the elderly in 2009, according to a data brief from the National Center for Health Statistics.
Fixed annuity sales improve in 1Q 2011
Tue, Jul 19, 2011
"Though low by historical standards, fixed annuity rates were higher than in fourth quarter 2010," said Jeremy Alexander, president and CEO of Beacon Research.
The Bucket
Wed, Jul 27, 2011
Brief and late-breaking items from Putnam, Symetra, Pacific Life, Allianz Life, Russell Investments, the Phoenix Companies, The Hartford, and Prudential.
Canada, far smaller than the U.S., has smaller age-related economic challenges
Wed, Jul 27, 2011
Our neighbor to the north spends only 10% of its GDP on health care, compared to 16% in the U.S., and its hospitality towards immigrants should help ease labor shortages as its Boomers retires.
‘Fee compression’ will alter retirement landscape, study finds
Wed, Jul 27, 2011
Facing a need for “ongoing holistic service from a third party,” the report said, many plan sponsors will seek a professional retirement plan advisor who earns a fee or retainer instead of an asset-based charge.
Italy: The good, the bad, and the pension policy
Wed, Jul 27, 2011
Many Americans yearn to vacation in romantic Italy, But, as this essay from IPE.com explains, Italians yearn for a less stagnant economy, cleaner politics, more jobs and a pension that replaces 60% of final salary.
Raymond James launches the RightBRIDGE Annuity Wizard
Tue, Aug 02, 2011
The new tool, developed with CapitalRock, gathers key information from clients about their income, liquidity, time horizon, risk tolerance, expenses, and guarantees, and finds the appropriate variable annuity.
Policy analyst critiques debt ceiling agreement
Tue, Aug 02, 2011
Here’s an edited version of an analysis of the new agreement on deficit and debt reduction by Robert Greenstein, president of the Center for Budget and Policy Priorities.
For DoL’s fiduciary campaign, an unsympathetic hearing
Wed, Aug 03, 2011
During the July 26 hearing on the DoL plan, Phil Roe (R-TN), chairman of the House Subcommittee on Health, Employment, Labor, and Pensions described the department’s proposal to strengthen the fiduciary standard as “ill-conceived."
Dennis Hopper was right, Hearts & Wallets survey finds
Tue, Aug 09, 2011
“The financial services industry needs to start executing on the reality that many investors don’t plan to retire,” said Laura Varas, Hearts & Wallets principal.
The Bucket
Tue, Aug 09, 2011
Brief or late-breaking items from Security Benefit, Allianz Life, Lincoln Financial, MassMutual and Prudential Retirement.
Going with the regulatory flow
Tue, Aug 09, 2011
In announcing new fund offerings for DC plans, Securian and BlackRock noted that they're trying to meet plan sponsor demand for greater fiduciary responsibility and lower investment costs.
Fed to keep rates very low through mid-2013
Tue, Aug 09, 2011
In an apparent bid to calm equity investors, the Federal Reserve announced that it won't raise its benchmark interest rate until the middle of 2013, at the earliest.
Aon Hewitt releases biennial report on DC trends
Wed, Aug 10, 2011
Plan sponsors say they are concerned about fees, but the share of sponsors who calculate all their fees didn’t rise in the past two years. It dropped.
American General announces FIA income benefit
Wed, Aug 10, 2011
The guaranteed lifetime income rider features an income base that is guaranteed to grow at no less than six percent compounded annually for up 20 years.
Many elderly carry mortgages
Tue, Aug 16, 2011
About a third of the 65-and-older households that owned a home in 2009 had a mortgage, according to the Census Bureau’s American Housing Survey.
Indexed annuity sales reached $8.2 billion in 2Q 2011
Tue, Aug 16, 2011
“This was one of the top-five best-selling quarters for indexed annuity sales,” said Sheryl J. Moore, president and CEO of AnnuitySpecs.com.
Many factors point to a longer average working life
Tue, Aug 16, 2011
The average retirement age for men, which was 65 in 1962, fell to about 62 between 1985 and 1995 but has since risen to 64, according to a new paper from the Center for Retirement Research at Boston College.
IRS seeks discussion on annuity – LTC hybrids
Tue, Aug 16, 2011
Although taxpayers are allowed to make the exchanges, they have not been sure how to report the exchanges, or how the exchanges might affect their income taxes.
The Bucket
Tue, Aug 16, 2011
Brief and late-breaking items from ING, Strategic Insight, TrimTabs, Great-West Retirement Services, Brinker Capital, Frontline Compliance LLC, and John Hancock Retirement Plan Services.
The Bucket
Tue, Aug 23, 2011
Brief and late-breaking items from T. Rowe Price, Securian, Zurich, The Hartford, New York Life and MetLife.
MetLife Tops VA Sales in 2Q
Tue, Aug 23, 2011
Variable annuity sales improved for the fifth consecutive quarter in the second quarter of 2011, while fixed annuity sales were one percent less than in the year-ago quarter, according to a report from LIMRA.
NAIC ponders regs on separate accounts
Wed, Aug 24, 2011
What, if any, variable product guarantees would be covered by a guaranty association, the regulators want to know.
Financial illiteracy costs Americans tens of billions
Wed, Aug 24, 2011
If they were more financially sophisticated, Americans could be paying much less in mortgage interest and mutual fund fees, says financial literacy scholar Anna Lusardi.
It pays not to panic, Fidelity survey shows
Wed, Aug 24, 2011
Plan participants who dropped to zero equities but then returned to some equities after the 2008 crisis saw an average account balance increase of 25% by June 30, 2011, compared to 50% for those who stuck with their equities.
Many health-impaired Britons overpay for life annuities—Towers Watson
Sun, Aug 28, 2011
Many people in the U.K. buy straight life annuities from their plan provider instead of using the Open Market Option to find out if they qualify for a higher-paying "enhanced" or "impaired annuity."
Broad markets conducive to active management, says Dutch firm
Mon, Aug 29, 2011
On average, active managers will underperform a portfolio of investable index funds. But 20-40% of managers show persistent outperformance, says Dutch asset manager Robeco.
Czech politicians split over private pension accounts
Tue, Aug 30, 2011
"The current opposition is strongly against the fact that part of the contributions to the pay-as-you-go system will be transferred to the private system,” said Jiri Rusnok, director of pensions at ING Pnezijni Fond.
Repealing ‘Obamacare’ Would Bring Back ‘Donut Hole’—EBRI
Tue, Aug 30, 2011
“Medicare beneficiaries with high outpatient drug use would be most affected by repeal and would need to save an additional roughly 30‒40 percent to make up the shortfall,” said EBRI’s Paul Fronstin, lead author of the report.
Who Is 'Too Big to Fail'?
Tue, Sep 06, 2011
Concerned that your insurance company might be designated a SIFI (Systemically Important Financial Institution)? Then read Deloitte's primer on SIFIs. Here's a synopsis and a link.
Why the U.S. had a crisis but Canada didn’t
Wed, Sep 07, 2011
Two Rutgers professors explain how fragmentation of the banking system in the U.S. has led to a long series of panics here, of which the Great Recession was only the latest. Canada's financial history has been quieter.
Health insurance ate your raise
Wed, Sep 07, 2011
Between 2000 and 2009, the share of compensation gains provided in the form of more expensive benefits ranged from 35.2% to 60.8% for U.S. workers, depending on their level of income, according to Towers Watson.
Use of peer pressure to encourage savings can backfire
Tue, Sep 06, 2011
Plan sponsors who urge union members to participate or to contribute more by pointing out other employees' saving behavior may produce unintended consequences, Harvard's David Laibson (in photo) and other researchers found.
TIAA-CREF Institute elicits “best practices” for DC plans
Tue, Sep 06, 2011
The research arm of the non-profit retirement plan for educators has just published the results of a forum it hosted last December on best practices and potential improvements in the design of defined contribution plans.
Actuaries suggest automatic adjustments for Social Security
Wed, Sep 07, 2011
"Automatic adjustments to benefits, taxes, or the normal retirement age could solve Social Security’s long-range financing problem permanently and automatically—and restore public confidence in the system," says the American Academy of Actuaries.
Pensions feel the risks of “de-risking”
Wed, Sep 07, 2011
In July, the combined funding deficits of the 100 largest U.S. DB plans rose by $68 billion, to $254 billion, said Reuters, citing the Milliman Pension Fund Index.
Leakage from retirement plans plagues South Africa
Wed, Sep 07, 2011
To promote retirement savings and drive down the cost of retail annuities, South Africa's National Treasury is considering the creation of a public, low-cost "Retail Bond-backed Retirement Annuity."
The right savings rate? Russell has a rule-of-thumb
Thu, Sep 15, 2011
Russell Investments recommends that each year a defined contribution plan participant should be saving a percentage of salary equal to 30% of his or her final income replacement rate, net of Social Security income.
The four best known, most admired DC investment managers
Wed, Sep 14, 2011
Vanguard pulled ahead of the group of 36 leading DC investment managers to score the highest in overall favorability. Fidelity was rated first in overall awareness.
Americans prefer not to think about long-term care: Sun Life
Wed, Sep 14, 2011
Most people dread nursing homes. 83% of Americans age 50 and older would rather survive five years at home than 10 years in a nursing home.
AXA Equitable puts flexibility in its variable annuity roll-up
Wed, Sep 14, 2011
Beginning with the third contract year, the roll-up rates of the Retirement Cornerstone variable annuity will be tied to the current 10-year Treasury rate plus 1.5% and will renew annually, AXA Equitable Life said.
The Bucket
Wed, Sep 14, 2011
Brief or late-breaking items from MassMutual, Genworth Financial, Morningstar, Deutsche Borse and Nationwide Financial.
Cash balance pension for uncovered workers proposed
Wed, Sep 21, 2011
The Secure Choice Pension would provide retired participants with a guaranteed minimum retirement income, and plan trustees could supplement the benefit with a “dividend” during a strong economy.
Change of government shapes Danish pension reform
Wed, Sep 21, 2011
Danish political factions are debating limits on early retirement, a ceiling on tax-deferred plan contributions, and a tax on stock transactions to offset the impact of an aging society.
Big 403(b) providers becoming bigger
Wed, Sep 21, 2011
Fidelity, ING, TIAA-CREF and VALIC continued to solidify their positions in the marketplace, according to a new report on the 403(b) retirement plan market from Retirement Research Inc.
The Bucket
Wed, Sep 21, 2011
Brief or late-breaking items from Vanguard, Prudential, AEGON/Transamerica, Celent, Fidelity, GuidedChoice, LPL Financial, Milliman, EagleEye Analytics, Archstone Foundation, and Fidelity.
DoL releases “interim guidance” on electronic delivery of disclosures
Wed, Sep 21, 2011
For retirement plans that must disclose general plan and investment information to participants starting May 31, 2012, the Department of Labor offered two viable approaches regarding information delivery.
The Four Most Common Questions about VAs
Wed, Sep 28, 2011
Investors have been asking Moody's if variable annuity issuers have made their products safer, and how Moody's evaluates the safety of VA guarantees. For answers, Moody's turned to the issuers themselves.
Russell introduces ‘volatility-responsive’ asset allocation
Wed, Sep 28, 2011
"Ten years of well-behaved markets can have less impact on the ultimate success or failure of a portfolio than a couple of outlier months of extreme returns," says Russell Investments in a new report on dynamic asset allocation.
SEC weighs action against Standard & Poor’s
Wed, Sep 28, 2011
The SEC enforcement staff sent S&P a Wells notice, which gives companies the chance to make the case why charges are unwarranted.
Hearts & Wallets identifies growth in investor technology use
Wed, Sep 28, 2011
Investors are using technology for pre-work before contacting a financial professional, to check up on their advisor and to monitor their advisor’s account management, the consulting firm has found.
Advisor loyalty to fund firms is in flux: Cogent
Wed, Sep 28, 2011
'Last year, DFA and BlackRock were the only Stars in our mutual fund company commitment ranking,' said Cogent principal John Meunier. 'This year, a total of four firms made it into the top tier.'
The Bucket
Wed, Sep 28, 2011
Brief or late-breaking items from DST, New York Life, CEIBA, and Putnam.
Courts favor fiduciaries in suit over “imprudent” plan investments
Wed, Oct 05, 2011
Plan sponsors and fiduciaries have won another case at the U.S. Court of Appeals for the 7th Circuit—the third this year.
U.S. pension deficit largest since WWII—Mercer
Wed, Oct 05, 2011
“The end of September marks the largest deficit since we have been tracking this information,” said Jonathan Barry, a partner in Mercer’s Retirement Risk and Finance business.
State employees prefer DB to DC, NIRS/Milliman study shows
Wed, Oct 05, 2011
The study analyzed seven state retirement systems that offer a choice between DB and DC plans to find that the DB uptake rate ranged from 98% to 75%, with the balance choosing the DC plan.
Putnam launches “Dynamic Risk Allocation” fund
Wed, Oct 05, 2011
In addition to global equities and global fixed-income securities, the fund may invest in commodities and real estate investment trusts, and use leverage.
AXA updates Accumulator VA
Wed, Oct 12, 2011
The Accumulator Series, introduced in 1995, now has a higher deferral bonus roll-up.
The Bucket
Wed, Oct 12, 2011
Brief or late-breaking items from Nationwide Financial, MetLIfe, Edward Jones, LPL Financial, and Vanguard.
Wealth2k income planning tool added to Pershing advisor platform
Wed, Oct 12, 2011
Income for Life Model, a time-segmentation retirement income planning tool from Wealth2k, will be integrated into the NetX360 advisor web platform offered by Pershing, the clearing firm owned by BNY Mellon.
From the UK, ideas for better outcomes for DC participants
Tue, Oct 11, 2011
Would gradual annuitization from age 65 to 75 be better for DC plan participants in the UK than gradually switching from equities to government bonds from age 55 to 65?
Academics propose solution to “annuity puzzle”
Wed, Oct 26, 2011
Low sales of individual income annuities "should not be viewed as an indicator of underlying preferences but rather as a consequence of institutional factors about the availability and framing of annuity options,” Shlomo Benartzi and Richard Thaler asserted.
New TDFs from Lincoln Financial respond to market volatility
Thu, Oct 20, 2011
Each TDF is “designed to adjust its equity allocation in response to prevailing market conditions,” the company said in a release.
Vanguard adds GLWB to its private-label variable annuity
Thu, Oct 20, 2011
The rider is issued is by Monumental Life Insurance Company, and costs 95 basis points a year in addition to the cost of the no-load VA, which ranges from 36 to 81 basis points, depending on the investment options chosen.
Retire the stereotype of the six-figure public-sector pension, say academics
Thu, Oct 20, 2011
About two-thirds of state and local workers leave public employment with little or no pension, according to a new research brief from Alicia Munnell and colleagues at the Center for Retirement Research at Boston College.
Record annuity sales at bank holding companies
Thu, Oct 20, 2011
Three-fourths (74.7%) of bank holding companies with over $10 billion in assets earned first-half annuity commissions of $1.46 billion, constituting 95.2% of total annuity commissions reported by the banking industry.
The Bucket
Wed, Oct 26, 2011
Brief or late-breaking items from Transamerica, JD Mellberg Financial, Allianz Life, Security Benefit and ING DIRECT USA.
A Closer Look at the Wealth of the Wealthiest
Wed, Oct 26, 2011
This excerpt from a new Congressional Budget Office report on wealth inequality in the U.S. shows that "highly compensated workers have replaced people whose income is from property or securities at the top of the income distribution."
In Netherlands, industry-wide pension plans struggle
Wed, Oct 26, 2011
Dutch pension officials ruled out Inflation-related increases in benefits and suggested that cuts were likely.
Gov. Perry's tax plan, analyzed
Wed, Nov 02, 2011
The Tax Policy Center estimates that the Perry plan would lower federal tax liability by $995 billion in calendar year 2015 compared with current law, roughly a 27 percent cut in total projected revenue.
Mercer adopts Financial Engines’ Income+ program
Wed, Nov 02, 2011
In contrast to Prudential’s IncomeFlex or Hartford’s Lifetime Income, which involve purchases of insurance products prior to leaving the plan, Income+ offers an optional “out of plan” purchase of a life annuity after rollover.
MetLife, Sun Life feel the pressure from low interest rates
Wed, Nov 02, 2011
MetLife's reduction of the deferral bonus on its hot-selling GMIB Max VA rider by a half-percent and news that Sun Life's strength rating is under review are symptoms of the impact of ultra-low interest rates on VA issuers.
Annuity inflows for 2011 peaked last March--DTCC
Wed, Nov 02, 2011
Inflows for all annuity types processed in September declined by 19% to $6.7 billion from $8.3 billion in August, according to the Depositary Trust and Clearing Corp.
Liberty Mutual’s new fixed deferred annuity offers three options
Wed, Nov 02, 2011
Purchasers of the product can choose among three modules—Extra access, Extra care and protection, or Extra assurance.
‘Individual mandate’ constitutional, U.S. appeals court says
Wed, Nov 09, 2011
“The right to be free from federal regulation is not absolute, and yields to the imperative that Congress be free to forge national solutions to national problems, no matter how local–or seemingly passive–their individual origins,” said the majority opinion.
New USAA life income annuity offers emergency medical rider
Wed, Nov 09, 2011
The free rider allows contract owners to withdraw up to 30% of the present value of the contract after three years to cover an emergency expense, such as uncovered medical costs.
About 54% of full-time adult workers are in a retirement plan: EBRI
Wed, Nov 09, 2011
"White, more highly educated, higher-income, and married workers are more likely to participate than their counterparts," the EBRI's October 2011 Issue Brief said.
Bill to offer state DC plan to non-profit workers passes in Massachusetts
Wed, Nov 09, 2011
But one observer suggested that extending coverage beyond state employees will be problematic, because of inconsistencies in state and federal pension regulations.
The Bucket
Wed, Nov 09, 2011
Brief or late-breaking items from Jackson National, Janus, Fidelity, Symetra, The Principal, DST, Primerica, Lincoln Financial Group and Putnam Investments.
'Don't Trust Your Pension to Someone Younger than You'
Sun, Nov 13, 2011
In this video, singer-songwriter Cosy Sheridan performs "Higher Financial Reform," a humorous jab at the young quants who seem to keep putting their elders' savings into jeopardy.
Bond funds grow, stock funds shrink in 2011
Wed, Jan 18, 2012
Bond funds saw net inflows of $116 billion during 2011, while equity funds saw net outflows of $51 billion for the year, according to Strategic Insight.
The kids are not alright… as prospective heirs
Tue, Nov 15, 2011
The wealthy have mixed feelings about passing money to the next generation and about the link between money and happiness, according to a new Barclays Capital survey.
Security Benefit introduces multi-premium fixed annuity for 403(b) plan participants
Tue, Nov 15, 2011
Built for the 403(b) market, the Total Interest Annuity can be funded with contributions up to $16,500 annually or with IRA contributions or rollovers.
Despite equity bounce in October, investors flee to bond funds
Wed, Nov 16, 2011
'After the ups and downs of recent months, investors seem to be suffering from volatility fatigue,' said Ari Nachmany of Strategic Insight.
A.M. Best reports on impact of low rates
Wed, Nov 16, 2011
Although the capital impact has been partially mitigated by substantial capital raising in recent years, additional capital requirements are likely to emerge if low interest rates persist.
The Hartford adds enhanced death benefit to Future6 GLWB
Wed, Nov 16, 2011
The Future6 Death Benefit allows for income withdrawals that do not reduce the death benefit, unlike most VA death benefits, according to Steve Kluever, vice president of product and marketing for Global Annuities at The Hartford.
High and low earners benefit from 401(k) plans differently
Wed, Nov 23, 2011
Looking closely at retirement data, researchers discover that the interplay of taxes, Social Security benefits, tax benefits, and take-home pay can be complex--and can vary considerably from worker to worker.
Five tasks that retirement plan advisors now face
Wed, Nov 23, 2011
What are advisors to small and mid-sized retirement plans doing these days? On a recent "listening tour," Transamerica tried to find out.
MetLife reorganizes in wake of Alico acquisition
Wed, Nov 23, 2011
MetLife's three new business regions, each of which will have its own president, are the Americas, EMEA (Europe, the Middle East and Africa), and Asia.
Fixed Annuity Sales Running Flat in 2011: Beacon
Wed, Nov 30, 2011
"It's an interesting environment," said Beacon Research CEO Jeremy Alexander (left). "The word is that some carriers are keeping a lid on business" because of the low rates.
Big Danish pension plan switches to DC from DB
Wed, Nov 30, 2011
The new regime would be one with no investment choices for plan participants to make. "Our members... are blue-collar workers and typically don't want to make investment decisions themselves," said the plan's chief investment officer.
Rolls-Royce agrees to £3bn longevity swap with Deutsche Bank
Wed, Nov 30, 2011
The British automaker's defined benefit plan assets stood at £7.8bn ($12.3bn) last December, with a surplus of around £700m ($1.1bn).
Dollar’s woes could boost global and emerging market debt: BNY Mellon
Wed, Nov 30, 2011
The dollar's share of global currency reserves has declined over the last 10 years as emerging markets rely less on external debt and move from fixed to floating exchange rates, a new report says.
Correction
Thu, Dec 01, 2011
An article in last week's cover story ("Airbag-Equipped Annuities") erred in reporting that MassMutual had stopped selling variable annuities. The company said it has simply narrowed distribution to its career channel and has sold $675 million worth of VAs so far in 2011.
Portugal to apply pension funds to deficit
Wed, Dec 07, 2011
The measure aims to transfer pension funds' liabilities to the Portugese Social Security program while using the assets to help the government meet its budget deficit target and pay down its debt.
Five Challenges for Life Insurers in 2012: E&Y
Wed, Dec 07, 2011
“Pressures such as low interest rates, volatile equities markets, and a political and regulatory environment in flux will continue to impact the industry, making it difficult for insurers to boost earnings," Ernst & Young said iin a release.
Lynne Ford leaves ING
Wed, Dec 07, 2011
Ford’s departure was “the result of some consolidation within our broader retirement business," an ING spokesperson told RIJ.
New Celent report forecasts DC trends
Wed, Dec 07, 2011
The defined contribution industry will see growing use of collective investment trusts and custom target date funds, according to a new report from Celent.
Envestnet acquires FundQuest
Wed, Dec 14, 2011
Timothy Clift, formerly chief investment officer and chairman of the investment committee at FundQuest, Inc., will join Envestnet|PMC as chief investment strategist, responsible for the development of investment strategies for client portfolios.
Barclays Wealth and Securian announce new executives
Wed, Dec 14, 2011
Christopher M. Hilger has been appointed the 16th president of the 131-year-old Securian Financial Group, Inc., and Joseph Danowsky has been hired by Barclays Wealth as a Managing Director and Head of Solutions for the Americas.
“Simpson-Bowles” reforms would reduce middle-class Social Security receipts: Urban Institute
Wed, Dec 14, 2011
Projected Social Security benefit reductions under the NCFRR recommendations are closely related to lifetime earnings, with those at the bottom of the lifetime earnings distribution largely shielded and those at the top experiencing significant reductions.
Morningstar announces agenda for institutional conference
Wed, Dec 14, 2011
Thomas Sargent, winner of the 2011 Nobel Prize in Economic Sciences and professor of economics and business at New York University, will deliver the keynote address.
MassMutual introduces Pension Funding Scorecard
Wed, Dec 14, 2011
The Scorecard provides a quarter-by-quarter performance comparison for a liability-driven investing (LDI) portfolio vs. a traditional 60% equity/40% fixed income portfolio against the MassMutual Pension Liability Index (MMPLI).
Expect slow growth over next decade: Vanguard
Mon, Dec 19, 2011
The fact that 10-year Treasury rates are only about 2% indicates the market’s belief that the U.S. economy will grow slowly over the next decade, Vanguard pointed out.
TD Bank predicts 2% growth, 8.8% unemployment in 2012
Mon, Dec 19, 2011
Economic headwinds include “market volatility, Europe's banking and fiscal crises, a polarized US Congress and overzealous fiscal restraint in Washington.”
Fitch calls U.S. life industry “stable,” but notes concerns
Mon, Dec 19, 2011
"The industry’s large in-force book of variable annuity business will continue to be a drag on profitability over the near term," the ratings agency said in a recent bulletin.
The Bucket
Wed, Dec 21, 2011
Brief or late-breaking items regarding AXA Equitable Life, MassMutual, Prudential Financial, Barclays Wealth, and Wealth & Pension Services Group.
White succeeds Bhojwani as president and CEO of Allianz Life
Wed, Dec 21, 2011
White (pictured at left) joined Allianz Life in 2009 as chief administrative officer responsible for compliance, information technology, operations, and suitability.
Canada’s Annuity Issuers Protect their Turf
Wed, Jan 04, 2012
The Bank of Montreal will halt new sales of its BMO Lifetime Cash Flow, a retirement income product that Canadian insurers said worked a bit too much like a variable annuity. The Canadian finance minister agreed.
Consumer Reports rates 13 brokerage services
Wed, Jan 04, 2012
A trusted source for information on a wide array of products, Consumer Reports decided to investigate online and full-service brokerage services by polling their readers and sending mystery shoppers to brokerages. Here's how 13 services measured up.
Could “Obamacare” encourage earlier retirement?
Wed, Jan 04, 2012
A review of Towers Watson retirement data shows that the presence of company-subsidized health insurance for retirees encourages people to retire before age 65. Researchers wonder if elements of "Obamacare"--the PPACA--could have a similar effect.
The Bucket
Wed, Jan 04, 2012
Brief and late-breaking items from LPL Financial, the Insured Retirement Institute, MassMutual, Great-West Retirement Services, Securian and Allianz Life.
Federal Reserve favors more predictability on rates
Wed, Jan 04, 2012
But “a number of members noted their dissatisfaction with the Committee's current approach for communicating its views regarding the appropriate path for monetary policy,” said the minutes of the Dec. 13 FOMC meeting, published this week.
Uncle Sam publishes annual financial report
Wed, Jan 04, 2012
For those who like diving into economic statistics, even the 16-page summary of the 2011 Financial Report of the U.S. Government provides an ample pool of data.
Aria Retirement Solutions aims stand-alone living benefit at RIA market
Wed, Jan 11, 2012
SALBs are back in the news. The RetireOne Transamerica solution is the first of what Aria Retirement Services CEO David Stone said will be several income solutions provided by Aria in partnership with major insurance carriers.
Lincoln Financial team will study consumer decision-making
Wed, Jan 11, 2012
Emily Pachuta will lead the team, as head of Consumer Insights group within Lincoln’s Insurance Solutions/Retirement Solutions division.
The Bucket
Wed, Jan 11, 2012
Brief or late-breaking items about Guardian Life, Bankers Life, the Society of Certified Senior Advisors, MetLife, The Principal, Edward Jones, Mutual of Omaha, Securities America, and the SPARK Institute.
Winners of PLANSPONSOR 401(k) Survey announced
Wed, Jan 11, 2012
Three service providers stood out in PLANSPONSOR's annual Defined Contribution Survey this year: Bank of America Merrill Lynch, Diversified Retirement Corporation, and BMO Institutional Trust Services.
The Bucket
Wed, Jan 18, 2012
Brief or late-breaking news from Jefferson National, Lincoln Financial, and F-Squared Investments.
One in five millionaires would pay more tax
Thu, Jan 19, 2012
But 65% just want to be left alone by the government to enjoy the wealth they’ve earned, an annual PNC survey shows.
Wirehouses are down but far from out: Cerulli
Thu, Jan 19, 2012
Although their headcount is down and their images are tarnished, wirehouses remain the kings of investment distribution, according to a report from Cerulli Associates.
Investors more optimistic in 4Q 2011: John Hancock
Thu, Jan 19, 2012
More than half of all investors surveyed said they expect to be in a better position financially two years from now compared with today.
The Bucket
Mon, Jan 23, 2012
Brief or late-breaking items from Milliman, the Insured Retirement Institute, the Financial Planning Association, the Association for Financial Counseling and Planning Education, Fidelity, Swiss Re, Putnam Investments, DTCC, the American Academy of Actuaries, the Society for Human Resource Management, and Ameriprise Financial.
What’s in an advisor’s title? Still not much, says Cerulli
Tue, Jan 24, 2012
Many advisor practices “offer some of the basic elements of financial planning, but focus their efforts nearly exclusively on asset accumulation strategies,” Cerulli said in a release.
Pacific Life launches GLWB for indexed annuity and ‘O-share’ variable annuity for Edward Jones
Tue, Jan 24, 2012
Pacific Index Choice now has an optional lifetime income benefit for 75 basis points and the Pacific Destinations VA comes in a new and cheaper share class.
January rally led by institutional investors: TrimTabs
Tue, Jan 24, 2012
Much of the year-to-date gain in U.S. stocks has occurred in overnight futures trading, said Trim Tabs executive vice president David Santschi.
RMB seen as third reserve currency, after dollar and euro
Tue, Jan 24, 2012
Holding RMB is important for investors who have global aggregate portfolios or diversified global bond portfolios, said Jim McCaughan, CEO of Principal Global Investors.
Allianz Life launches new indexed annuity
Wed, Feb 01, 2012
Only field marketing organizations and agents associated with the Allianz Preferred distribution model will distribute the Allianz 365i Annuity, whose income rider costs 1.2% per year.
New York Life resolves itself to a duo
Wed, Jan 25, 2012
The company reorganized itself into two basic divisions, an Insurance Group run by Chris Blunt and an Investments Group run by John Y. Kim. Kim will succeed Blunt as head of the Retirement Income Security (RIS) business.
The Bucket
Thu, Feb 02, 2012
Brief or late-breaking items from Prudential Retirement, John Hancock Annuities, John Hancock Financial Network, TD Ameritrade, TIAA-CREF, Northwestern Mutual Life, Securian Retirement, and Great-West Life & Annuity.
SunAmerica expands lifetime income options
Wed, Feb 01, 2012
SunAmerica has also introduced a new investment portfolio – the SunAmerica Dynamic Allocation Portfolio –as an underlying investment in their variable annuity products.
BlackRock launches ‘Multi-Asset Income Fund’
Wed, Feb 01, 2012
"We want to help clients employ different strategies that go beyond the simple, 60/40 equity-and-fixed income portfolio rule of the past,” said the head of BlackRock’s U.S. retail business.
Deloitte Consumer Spending Index ends 2011 on “low note”; contraction predicted in 2012
Wed, Feb 01, 2012
Job losses in higher-income industries like government and financial services have apparently added to the weakness in household earnings and hurt overall spending.
Capital One’s bid for ING Direct could be approved this week—or not
Tue, Feb 07, 2012
Capital One said it would remain a “traditional bank” and hold just 1.5% of total U.S. deposits if the deal goes through.
Sales mount for New York Life’s deferred income annuity
Tue, Feb 07, 2012
The nation's largest mutual insurer said Guaranteed Future Income is the “fastest growing annuity product solution in the company’s history.”
‘Toxic’ annuity market exists in UK: Report
Tue, Feb 07, 2012
Under the current system, many new retirees from employer-sponsored plans fail to shop around for the best income annuity.
Supply-demand imbalance to weigh on US yields: BlackRock
Tue, Feb 07, 2012
“The biggest dynamic is simply the lack of supply in fixed income,” a BlackRock executive said. “We are seeing something we have not seen for at least 25 years.”
Answers to the eternal question: What do women want?
Tue, Feb 07, 2012
A Hearts & Wallets study found that women tend to own fewer types of investment products than men, and have higher allocations to bank products.
The Bucket
Wed, Feb 08, 2012
Brief or late-breaking items from the Retirement Income Industry Association, the Defined Contribution Institutional Investors Association, Lincoln Financial, and Prudential Retirement.
The Bucket
Mon, Feb 13, 2012
Brief or late-breaking items from Capital One, ING Direct, New York Life, Guardian Life, LPL Financial, AXA Advisors, Envestnet, T. Rowe Price and Towers Watson.
To pay for highways, legislator eyes inherited IRA taxes
Mon, Feb 13, 2012
EBRI suggests that retirement savings-related tax breaks are tempting targets for an administration in search of stimulus money.
Up to $4.7 trillion may be “in motion”: Cerulli
Mon, Feb 13, 2012
There are some 26 million households led by people ages 55 to 69, with an average of $181,000 in retirement assets per household.
Would Europe’s pension cure be worse than the disease?
Mon, Feb 13, 2012
DB plan providers and plan sponsors in Europe say that higher capital requirements wouldn't make their plans safer, but would force them closer to insolvency.
Derivatives lift MetLife in Q4 2011
Wed, Feb 15, 2012
MetLife reported derivative net gains of $351 million, after tax, which were largely due to declines in interest rates and gains in the company’s variable annuity hedging program.
Summary of proposals in Obama budget
Tue, Feb 21, 2012
Here are proposals in the new Obama budget that are likely to affect members of the financial, insurance or retirement planning industries.
Potential Hartford split raises uncertainties: Fitch Ratings
Tue, Feb 21, 2012
Some Hartford investors have reportedly voiced "strong opinions" regarding profitability at the insurer and are pushing to restructure its life and property/casualty units into two separate companies.
Save capitalism with “long-termism": Gore and Blood
Tue, Feb 21, 2012
Generational Investment Management, whose chairman is former vice president Al Gore, says in a white paper that long-term thinking is essential for the sustainability of capitalism.
Money managers doubtful on equities: Towers Watson
Tue, Feb 21, 2012
The economic recovery remains “as elusive and fragile as ever,” said Towers Watson global investment committee chairman Robert Brown.
The Bucket
Tue, Feb 21, 2012
Brief or late-breaking items from DST, The Hartford, LPL Financial, RIIA, MassMutual, Consolidated Credit Counseling Services, Lincoln Financial Distributors, and Mutual of Omaha.
The Bucket
Tue, Feb 28, 2012
Brief or late-breaking items from LPL, McCamish Systems, Ebix, Allianz Life, Fidelity, Lincoln Financial and Mutual of Omaha.
Affluent fret over, but do little about, future health expenses: Merrill
Tue, Feb 28, 2012
The latest Merrill Lynch Affluent Insights Survey showed that 73% of the affluent not yet retired viewed retirement as “a second act” during which they would work at least part-time.
Pacific Life launches indexed annuity
Wed, Feb 29, 2012
The contract, which emphasizes choice, gives investors two index options and three possible crediting methods.
Middle-income Boomers ignorant of Medicare: Bankers Life
Wed, Feb 29, 2012
Although Boomers cite uncovered healthcare expenses (80%) and becoming ill (74%) as their top financial concerns about retirement, many appear to be taking a “learn as you go” approach to understanding Medicare’s coverage and costs.
One-Time Crusader Breaks Bad
Tue, Apr 17, 2012
Matthew Hutcheson, who portrayed himself as a champion of fuduciary responsibility, was indicted by a federal grand jury last week in Boise, Idaho, on charges of stealing millions of dollars from a multi-employer retirement plan of which he was the trustee.
Dissolve Solvency II's capital requirements?
Wed, Mar 07, 2012
The Dutch Social Affairs minister, a phalanx of pension-sponsoring industry associations, and European insurers are all protesting the stringent capital requirements proposed under Solvency II, the regulatory regime that would harmonize Europe's insurance standards.
Tax cuts and tax expenditures hurt the economy: Concord Coalition
Wed, Mar 07, 2012
Deficit-financed tax cuts don’t pay for themselves and “are not a free lunch,” said Diane Lim Rogers, chief economist at the independent research group.
Morningstar establishes online ‘Alternative Investments Center’
Wed, Mar 07, 2012
“Advisors play a crucial role in educating their clients about alternative investments,” said Nadia Papagiannis, Morningstar’s director of alternative fund research.
Towers Watson downgrades intermediate bonds
Wed, Mar 07, 2012
In the medium-term, as private-sector deleveraging problems fade, there is likely to be a stronger and faster cyclical recovery than most intermediate bond markets appear to be pricing, the consulting firm said.
The Bucket
Wed, Mar 07, 2012
Brief or late-breaking items from Credit Suisse, The Standard, OneAmerica, LPL Financial, Advisor Software Inc., Oliver Wyman, and the Bank of Montreal.
Alternatives Move to Center Stage
Wed, Mar 07, 2012
Over the next five years, 55% of advisors see their allocation to alternative investments increasing “moderately” and 11.1% see it increasing “substantially,” according to a Jefferson National survey.
Schwab supports DTCC’s service for custody of alternatives
Wed, Mar 07, 2012
“AIP is designed to provide the alternative investment industry with the same type of efficiency and scalability that exists in the mutual fund industry,” said Schwab executive vice president Bernie Clark.
Record sales for income, indexed annuities in Q4 2011: Beacon
Wed, Mar 14, 2012
Fourth quarter’s fixed annuity sales held up well on a period-to-period basis, declining only 1.7% to $17.3 billion. At $2.2 billion, income annuities were up 17.6%.
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.
The Bucket
Wed, Mar 14, 2012
Brief or late-breaking items from Athene, Prudential Financial and T. Rowe Price.
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.
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.
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.
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.
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.
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.
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 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.
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.
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.
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.
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.
New Lincoln VA funds use Milliman-inspired volatility buffer
Tue, Apr 03, 2012
Lincoln Financial vice president Dan Hayes described the advent of volatility management mechanisms inside today's VAs funds-of-funds as comparable to the emergence of "4G" cellphone technology.
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.
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...
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.
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.
Rollups are Back in Style
Mon, Apr 09, 2012
Guardian Life and Protective Life have both filed prospectuses for variable annuities with 10-year/100% deferral bonuses.
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.
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.
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.
‘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.
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.
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.
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.
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.
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.
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.
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.
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...
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).
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
New CDA offered by Great-West Life for Bank-Affiliated B/Ds
Wed, May 09, 2012
The new "contingent deferred annuity," which attaches a lifetime income guarantee to a portfolio of Vanguard exchange-traded funds, offers potentially higher payouts rates if the 10-year Treasury rate rises.
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.
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.
