De-risky business: AIG will spin off its Life & Retirement division, Venerable Holdings will reinsure $12bn worth of Equitable's pre-2010 variable annuities with living benefits, and Commonwealth Annuity (part of Global Atlantic) will reinsure $5.7 billion in inforce fixed annuities.
Our guest columnist, originator of the 7TwelvePortfolio strategy, shares a spreadsheet tool that he uses to engage older clients in conversation about the long-term risks associated with different retirement ages, asset allocations and withdrawal rates.
The bright spot continues to be registered index-linked annuities, or RILAs. Third-quarter RILA sales jumped to $6.4 billion, or 33% over 2Q2020. Year-to-date, RILA sales were $15.8 billion, up 26% from 2019 results.
Everyone loves a tax cut, and low interest rates appear to boost the economy, but they don't necessarily represent the tide that lifts all boats. Our guest columnist suggests that they can also promote inequality and inefficient investment.
The House has introduced a sequel to last year's SECURE Act. Once again, legislators have listened to the retirement industry and tried to remove what the industry considers obstacles to efficiency and growth.