Systematic withdrawals from DC plans are one of the simplest and cheapest ways to generate income from tax-deferred savings in retirement. Rollovers get the headlines, but more people advocate SWPs than you might have thought.
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.
A phrase in the DOL's new Best Interest exemption could make it very hard for broker-dealer reps to accept commissions on the sale of variable annuities and proprietary mutual funds to IRA owners.
Britain's public-option defined contribution plan, NEST, thinks that a decumulation strategy that used tax-deferred savings to fund a small cash bucket, a big income-generating bucket and a longevity annuity might work best for the most people.
"Unless the underlying problems are addressed head-on, short-term gain may be purchased at the price of long-term pain," warn the authors of the bank's 85th annual report on the global economy.