'We talk all the time about not being the team that performs extremely well for eight and two-thirds innings just to screw it up on the final out,' said the Jackson National EVP.
At the LIMRA-Society of Actuaries Retirement Industry Conference in Baltimore last week, Scott Stolz from Raymond James, Greg Jaeck from Edward Jones and Jarrod Fisher from Simplicity Financial Distributors delivered frank opinions about annuities and annuity issuers.
Many factors are driving the increase in indexed annuity sales: More manufacturers, better products, more distributors, competitive commissions, aging boomers, and relaxed regulation. But does the bubble contain the seeds of its own deflation?
Israel has found that even a mandatory defined contribution system can’t resolve all of the behavioral, economic, or administrative issues that prevent low-income and minority workers from saving for retirement. (Photo: Mahane Yehuda market in Jerusalem.)
Deferred annuities have lapse rates as high as 40% to 70%, but the lapse rates of LTCI/annuity hybrids could shrink to as low as one or two percent—the rates associated with LTCI policies.
Where NAVA might have been described as inward-looking, IRI seems to be outward-looking. Some members think that's a refreshing change.
The popularity of enhanced annuities—which provide bigger payouts for those with adverse medical conditions—is likely to grow, consultants said.
But many employees still face smaller raises, lower bonuses and higher health care costs, a Watson Wyatt analyst said.
From August to December of 2008, the number of households describing themselves as conservative investors jumped to 32% from 25%.
“Never has there been a more challenging period for those selling indexed annuities,” said Sheryl J. Moore, president and CEO of AnnuitySpecs.com.
Investors can choose either a 3-, 5-, 7-or 10-year period with a matching withdrawal charge schedule.