A Day in the Life of ‘Day One’

To show that Prudential understands retirement and empathizes with retirees, the insurer created a series of warm, image-building ads in which real-life retirees show-and-tell their own stories.(Above, Linda Guthrie.)

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.
News

‘Obamacare’ Survives

In making a tie-breaking vote, Chief Justice John Roberts allowed the so-called "individual mandate" of the Affordable Care Act to stand, on the grounds that the penalty for not buying health insurance is a tax, and that Congress has the power to tax.

Plan Sponsors Awaken to Leadership Role

The newest Retirement Planscape report from Cogent Research indicates that sponsors of retirement plans of all sizes are becoming more assertive in making sure their participants will be financially secure later in life.

Poisoned Pensions

Poor investments and rich benefits play a role in state pension underfunding, but they are insignificant compared to the lack of full contributions, writes Chris Tobe. SEC and the ratings agencies have neglected deliberate underfunding of the plans, he says.

My New Baseball Cap

Jeremy Grantham and William Bernstein spoke at the Morningstar Investment Conference, and Morningstar handed out a recent study in which its analysts compared five different retirement withdrawal strategies--and chose the most efficient.