England’s Search for a DC/DB Hybrid

The U.K.’s pension ministry has proposed ‘defined ambition’ as a remedy for the country’s retirement savings ills. ‘DA’ is a hybrid of DC and DB, but remains otherwise undefined. Pictured: A worker at a Morrisons supermarket in Britain.

Lobbying 101

Retirement industry trade groups don’t want deficit hawks to reduce the tax incentives for retirement savings. Last week’s Senate resolution affirming the status quo was a result of their lobbying efforts.

Rate Expectations

At a time when low interest rates are pinching off the annuity industry’s oxygen supply—not to mention starving bond investors and crippling pensions—a Columbia University economist's rationale for raising rates might sound like salvation in certain quarters.

Guardian Weathers the Storm

Guardian Life VP Douglas Dubitsky talks about the mutual insurer's variable annuity sales growth and how guaranteed income can “free an advisor to be an advisor again.”
Featured

That Which Does Not Kill You Makes You Stronger

You must make peace with uncertainty, randomness and volatility, claims Nassim Taleb in his new book, "Antifragile." The author of "The Black Swan" calls those who insist on trying to predict the future, 'fragilistas.' We offer an abridged version of a lively book review by Knowledge@Wharton.
News

Sun Life downgrade follows Guggenheim deal

The rating actions follow the December 17, 2012 announcement by SLF of its agreement to sell its U.S. annuity and certain life insurance business lines to a Guggenheim Partners-led investor group for approximately $1.35 billion.

Morgan Stanley expects fiscal cliff to be hardly a speed bump

Central banks in developed countries are holding short-term rates down to induce investors to shift into riskier, higher-yielding assets, says Morgan Stanley's Global Investment Committee Monthly report for December. The bank says it doesn't intend to 'fight the Fed.'

The Bucket

Brief or late-breaking items from MetLife, Thrivent for Lutherans, The Financial Planning Association, Towers Watson, Cogent Research, Security Benefit and the New York Stock Exchange.

RIJ will not publish next week

Retirement Income Journal and RIJAdvisor will not be published during the week of December 24-28, in observance of the holidays. We thank all of our subscribers and advertisers for their support of our mission during the past 12 months and for helping make 2012 our best year yet. We'll see you in the New Year.