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.
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.)
This week, RIJ received a press copy of “What Advisors Want from Annuity and Insurer Providers-2019,” a study by Practical Perspectives, a Boxford, MA-based financial services market research firm.
“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.