The Stag Brings Back GLWBs

In an about-face on VAs, The Hartford has gone back to the GLWB, tempering its risks with a CPPI fund. The arrival of Steve Kluever from Jackson National in March reflects the new thinking.

Research Roundup

We summarize four recent papers: 'Portfolios for Long-Term Investors,' 'What is the Value of Annuities?,' 'Public Economics and Inequality: Uncovering Our Social Nature,' and 'Financial and Total Wealth Inequality with Low Interest Rates.'

An Annuity’s ‘Moneyness’? There’s an App for That

How will variable annuity contract owners use their income benefits? That question is vital to annuity issuers and to fiduciary advisers with clients who own VAs. This Texas Dep't of Insurance actuary knows a product that can help them find out.

A Chip Off the Old Rock?

Bloomberg reported this week that Prudential is considering selling its retirement plan recordkeeping business. Prudential didn't confirm the report, but several industry insiders did. Low interest rates, high costs of IT makeovers, and sticky stable value fund guarantees are driving the move, RIJ was told.
Featured

NYLife Targets VA Buyers with New DIA

The new multi-premium contract allows a person to build a personal pension with a series of contributions leading to lifetime income beginning at a pre-determined but flexible start date.
News

Couples readier for retirement than singles: RAND

A 30% reduction in Social Security benefits would reduce the percentage of married people who are adequately prepared for retirement by 7.8 percentage points and the percentage of single people by 10.7 percentage points, two RAND economists found.

Actuary to Congress: Raise SS retirement age

Even in 1940, however, men who reached age 65 had an average life expectancy of 12.7 years—meaning that half lived longer than that. (Albus Dumbledore was nearly 116 years old when Severus Snape killed him.)

Austria urged to thwart early retirement

Though Austria’s statutory retirement ages are 65 for men and 60 for women, Austrian men retire at age 58.9 on average while women retire at age 57.5 on average.

The Bucket

Brief or late-breaking items from Morningstar, Milliman, Vanguard, Allianz Life, Great-West Retirement Services and MassMutual.

Summer Cliffhangers in the VA Soap Opera

Mr. McDonnell publishes Soleares Research, a website devoted to variable annuity industry news. Here's his take on the latest trends in VA contracts.

The Journal Plays Gotcha! with EBRI

In a July 7 article, the Wall Street Journal reported that auto-enrollment in 401(k) plans has backfired, sticking some people at a lower contribution rate than they might have elected. In its desire for a man-bites-dog story, the Journal overreached.