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.
'Many of the decisions presented here are beyond the skills of most pre-retirees and retirees,' writes the author, a research scholar at the Stanford Center on Longevity. 'They’re going to need help.'
Bond mavens, check this out. A new SEC report describes how most of the $54-trillion dollar U.S. credit market survived last spring's financial crisis. It covers securitized 'leveraged loans,' which provide high-octane fuel for fixed indexed annuity issuers.
'Insurers can't remain wedded to product sales, which are becoming commoditized in a future that trends toward financial advice,' says industry veteran Michelle Richter, who just launched Fiduciary Insurance Services, LLC.
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.