Inspira, a $20 million IRA recordkeeper, and GuidedChoice, say they can turn small, unprofitable rollover IRAs into revenue generators for a wide range of big recordkeepers and others. "This industry is begging for reinvention," says Inspira's Pete Littlejohn.
When will annuities be loved? After all the creative destruction of the past 10 years, what’s next for the annuity industry? Which trends will persist? Which products will flourish? We discuss the trends that Retirement Income Journal expects to cover in 2021 and beyond.
Fixed deferred annuities may be the most promising candidates for inclusion in 401(k) plans. But in order to adapt these contracts to the defined contribution space, they must lose some of the 'illiquidity' that helps make annuities valuable. Some innovative solutions are now on the market.
Publicly-held life insurers are using reinsurance to improve their balance sheets. But at what cost? 'I believe that many of these blocks of business are only being funded in part with real assets,' a forensic accountant told RIJ.
Many owners of variable annuities with lifetime income riders are not using their benefits as efficiently as they could, Ruark found. They often draw down too much or too little of their money, thus degrading or not taking full advantage of the insurance features.
The oft-cited “four percent rule” for a safe withdrawal rate in retirement is unfamiliar to seven in ten Americans (69%), according to a survey by The American College. Sixteen percent think it's safe to withdraw 6% or even 8% per year.
“At the beginning of this year we started giving our wholesalers iPads instead of laptops,” said Jackson vice president Luis Gomez. “As they visited advisors and went through their stories on the iPads, the advisors started asking, ‘Is that available for me?’"