The median annual income for people over age 65 in the United States is only $18,000, including public assistance and financial help from friends and family. The average—skewed upward by the highest incomes—is almost $29,000.
Vanguard analysts put the chance of a double-dip recession at about 20%. The bond yield curve suggests only a 6% risk, but the yield curve isn't as reliably predictive as it used to be, they say.
Dual-account products offer the best of both worlds: low-cost tax-deferral with the option to move assets dynamically into a guaranteed lifetime payout vehicle over time.
Issuers of variable annuities with income benefits could face lower-than-expected lapse rates and higher reserve requirements over the next 18 months, says Oliver Wyman.
“We expect that the SEC proposals will be adopted much as proposed," says Fred Reish, the well-known ERISA lawyer. But a TDF expert says plan fiduciaries should do more than merely comply with them.
TDFs have always been a sales strategy more than an investment strategy, and we should recognize that.
A new scholarly claims that sequence risk demands attention throughout retirement, not just during the years immediately before and after the retirement date.
Retirement Income Journal will not be published July 28. The next issue will appear August 4, 2010.
The share of all 401(k) plan participants using TDFs increased from 25% in 2007 to 31% in 2008, a new study from the Employee Benefits Research Institute shows.
Over time, the fees and expenses charged to DC plan accounts can take a substantial bite out of retirees’ retirement savings, said the CEO of the plan sponsor advisers and actuaries group.
"Planning for retirement can involve multitudes of subjects. As individuals gain knowledge on the value of annuities, they will understand the benefit of this product," Quest CE said in a release.