A New NEST for British Nest-Eggs
This is the first part of a two-part article on Britain’s ambitious national defined contribution fund for undersavers, a "public option" called the National Employment Savings Trust, or NEST.
Weighing the Value of a Variable Annuity
A VA lifetime withdrawal benefit—especially one with a 'ratchet'—can provide the upside potential and downside protection that many Boomers want in retirement, say researchers Petra Steinorth and Olivia Mitchell. But a life annuity offers a higher dose of "AEW."
De-Risky Business
Squeezed by low interest rates, variable annuity issuers have no choice but to keep trimming their benefits. In this review, a VA expert surveys the summertime activity of (and skuttlebutt related to) major manufacturers.
New York Life Remixes the Variable Annuity
You've heard of New York Life's Guaranteed Future Income, where clients pay today for lifetime income several years from now. A new NYL product, Income Plus, also locks in future income, but lets policyholders put some money at risk during the waiting period, a recent prospectus shows.
Featured
The Mid-Point of a Trying Year
A slowing economy, falling interest rates and de-risking strategies made for mixed second quarter results at the major publicly-held annuity issuers (current and former), excepting perhaps Lincoln Financial.
An Annuity Fee Record with an Asterisk
First-time annuity fee reporting from Raymond James Financial of $61 million boosted the quarterly bank/thrift annuity fee income numbers to a record high, according to the latest Michael White-ABIA Bank Annuity Fee Income Report. Morgan Stanley annuity fee income was up 48%.
News
Washington freeze chills the whole economy
Manufacturing executives from across America told the New York Times that they are all but paralyzed by anxiety about the “fiscal cliff” and a potential drop in GDP as a result of reduced government spending.
Falling rates drove up pension liabilities in July: BNY Mellon
Portfolios for plan sponsors have performed well, with assets rising more than seven percent during the first seven months of the year for the typical U.S. corporate plan. But liabilities are growing faster.
Bond guru to Wall St.: “You didn’t build that”
In his latest column, Bill Gross (pictured) almost echoes the refrains of Occupy Wall Street, charging that capital has prospered at workers’ and the public sector’s expense.
Are boomers doomed to live in trailers, clip coupons and eat dandelion leaves?
Though experts recommend a retirement nest egg of at least $1 million, less than half of middle-aged, middle-class DC participants have reached even $100,000, survey shows.
“Quote” of the Week
“I'm suggesting that be broken up so that the taxpayer will never be at risk, the depositors won’t be at risk, the leverage of the banks will be something reasonable.” – Sanford Weill, former CEO of Citigroup.
The Bucket
Brief or late-breaking items from Insurance Technologies, Securian, Prudential Financial, LPL Financial, and Protective Life.
