As the living benefits of variable annuities became more valuable during the financial crisis, contract owners astutely held on to them, according to a presentation by Ruark Consulting at a recent Society of Actuaries meeting in Chicago.
Like the Ford Mustang in 1965, the variable annuity with a lifetime income rider seemed like the right Boomer product at the right time in 2006. Then came the Crisis. A new survey by Cogent Research and the Insured Retirement Institute looks at where the VA is today and where it's headed.
VA issuers may be able to offer rich living benefits safely and inexpensively by embedding a futures-based hedging strategy inside their investment options. That's what Ohio National seems to have done. (Image by Spectrumphotofile.)
At least three proposals have been floated to open state pensions to private sector workers who have no retirement plan. Given the troubles of many state plans, that's counterintuitive. Artwork by Zaza Khabuliani.
“Pressures such as low interest rates, volatile equities markets, and a political and regulatory environment in flux will continue to impact the industry, making it difficult for insurers to boost earnings," Ernst & Young said iin a release.
A gerontology professor argues in a new article that Americans’ 401(k) holdings are coming up trillions of dollars short, thanks to high investment management fees.
Ford’s departure was “the result of some consolidation within our broader retirement business," an ING spokesperson told RIJ.
The defined contribution industry will see growing use of collective investment trusts and custom target date funds, according to a new report from Celent.
“A strategy of shorting stocks with a disproportionate number of negative picks on the site and buying stocks with a disproportionate number of positive picks produces a return of over 9 percent per annum over the sample period,” a National Bureau of Economic Research paper said.
The measure aims to transfer pension funds' liabilities to the Portugese Social Security program while using the assets to help the government meet its budget deficit target and pay down its debt.
Brief or late-breaking items from MetLife, Vanguard, Boston Research Group, Securian, Nationwide, The Hartford and the MIT AgeLab.