The 40-year-old leader of the “independent fiduciary movement” is passionate about making retirement plans more responsive to the needs of participants.
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.
With his National Retirement Security Plan, independent fiduciary Matthew Hutcheson hopes to bring lower fees, better management to small and micro retirement plans.
“It's marketed as a gap product, such as between early retirement and pension benefits or to bridge until longevity insurance kicks in,” said Tamiko Toland, an annuity industry analyst at Strategic Insight, Inc.
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.
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.
"The absence of standards for sharing necessary information among the insurance product providers and unaffiliated record keepers an impediment to more widespread access to these products," said Spark attorney Larry Goldbrum.
Lobbyists wish to "drastically erode the modest pensions of millions of public sector workers," said Derek Simpson of Unite, Britain's largest union.
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.