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.
At the LIMRA-Society of Actuaries Retirement Industry Conference in Baltimore last week, Scott Stolz from Raymond James, Greg Jaeck from Edward Jones and Jarrod Fisher from Simplicity Financial Distributors delivered frank opinions about annuities and annuity issuers.
Many factors are driving the increase in indexed annuity sales: More manufacturers, better products, more distributors, competitive commissions, aging boomers, and relaxed regulation. But does the bubble contain the seeds of its own deflation?
Israel has found that even a mandatory defined contribution system can’t resolve all of the behavioral, economic, or administrative issues that prevent low-income and minority workers from saving for retirement. (Photo: Mahane Yehuda market in Jerusalem.)
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.
Here's a hyper-linked list of variable annuity prospectuses filed with the SEC from January 1 to June 30, 2011. The list was provided by Chicago-based Beacon Research, host of annuitynexus.com
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.
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.)
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.
Brief or late-breaking items from Morningstar, Milliman, Vanguard, Allianz Life, Great-West Retirement Services and MassMutual.
Mr. McDonnell publishes Soleares Research, a website devoted to variable annuity industry news. Here's his take on the latest trends in VA contracts.
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.