Experts from Aegon Global Pensions, De Nederlandsche Bank and other Dutch pension and financial consulting firms are helping the Amsterdam-based P&D Network plant the seeds for "micropension" programs in the developing world. The final part of a two-part series.
We summarize four recent papers: 'Portfolios for Long-Term Investors,' 'What is the Value of Annuities?,' 'Public Economics and Inequality: Uncovering Our Social Nature,' and 'Financial and Total Wealth Inequality with Low Interest Rates.'
How will variable annuity contract owners use their income benefits? That question is vital to annuity issuers and to fiduciary advisers with clients who own VAs. This Texas Dep't of Insurance actuary knows a product that can help them find out.
Bloomberg reported this week that Prudential is considering selling its retirement plan recordkeeping business. Prudential didn't confirm the report, but several industry insiders did. Low interest rates, high costs of IT makeovers, and sticky stable value fund guarantees are driving the move, RIJ was told.
“Looking ahead, we believe that indexed and income annuities will continue to do well. The outlook for fixed rate annuities is more uncertain," said Jeremy Alexander, CEO of Beacon Research.
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."
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.
"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.
“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.
Justin Wolfers teaches business and public policy at The Wharton School at the University of Pennsylvania. He is a visiting fellow at the Brookings Institution.
MetLife was able to knock off Prudential as the top seller of variable annuities in the second quarter because it de-risked its income benefit in a way that actually improved its marketing story.