MetLife’s Retirewise program offers hundreds of brown-bag seminars, like the one depicted in this ad, for 401(k) participants at firms where MetLife isn’t the provider.
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.
The contract costs 2.25% a year, including 100 bps for the income rider, 75 bps for the M&E risk fee, and 50 bps for fund management, says Bill Lowe, president of ING Financial Solutions.
Even good retirement plans can backfire if you do not carefully consider the effect of disability and lost earning power on retirement savings.
“Most employees are losing a very material amount of their retirement assets due to fee-related erosion,” the consulting firm said.
With this product and others like it, the cost of LTCI is greatly reduced because the fixed annuity assets serve as a very large deductible.
“So far we've been raising awareness of the crisis in retirement income,” said Nancy Hwa, a spokesperson for Retirement USA.
Merrill Lynch's billboard urges Times Square visitors to send text messages naming the thing they'd most like to “retire.”
Britain is developing a system of personal investment accounts targeted at low and middle-income workers who may or may not have a workplace savings plan.