In a white paper published last month, Milliman actuaries describe a design for a mini defined benefit plan that a plan sponsor could tuck inside a defined contribution plan like a donut tire in the trunk of a car.
At the LIMRA annual conference in Boston earlier this week, MIT economist James Poterba described how low interest rates make saving for retirement more of a challenge.
Speakers Wade Pfau and Curtis Cloke showed planners at the Financial Planning Association's 2019 conference in Minneapolis that income annuities can provide growth as well as protection.
Recent research offers new insights into financial decision-making, the decision to work after retirement, and reveals surprising links between aging and interest rates, the rise of the service economy, and the 'shadow banking' phenomenon.
If progress is not made in reducing the projected fiscal imbalances and limiting the growth of bank reserves, reduced demand for dollar assets could cause the dollar to fall more rapidly and the interest rate on dollar securities to rise.
The lifetime income benefit captures new contract value highs on a daily basis to age 90, with a minimum deferral bonus of 6% simple interest credited until the 10th contract anniversary or the first withdrawal if sooner.
If income payments are deferred for five years, the available income withdrawal amount is boosted by 150%. With a ten-year deferral, the available income withdrawal amount gets a guaranteed boost of 225%.
Western European nations with universal health care and retiree social programs dominate the top of the rankings, taking the first 10 spots. Norway is first overall, followed by Switzerland, Luxembourg, Sweden and Austria.
The United Kingdom is the only market with defined contribution assets in excess of US$1 trillion that is expected to have double-digit growth.
Britain is talking about creating a government-sponsored Pension Protection Fund that would "smooth" participant outcomes and bear the risks that private providers can't afford to shoulder.
It understandably drives the 401(k) industry nuts to hear professors and regulators proposing to cut the tax incentives for the business owners who sponsor workplace plans or for those who contribute the largest amounts to plans.