Part I: ‘Keep Your Hands Off My 401(k).’ Based on their recent e-mails to the Labor Department's RFI, some Americans think Uncle Sam wants to confiscate private savings.
Should US retirees delay claiming Social Security until age 70, even if they have to spend savings until then? The Center for Retirement Research at Boston College proposes that strategy as a default option in retirement plans.
Shopping for an annuity, like shopping for a car, involves questions about the manufacturer of the product. Do their products perform as expected? Will service quality be high? Are they likely to stay in business? We show you where to look for answers.
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.
In print, on radio and on TV, Rush Limbaugh and Newt Gingrich helped fuel the rumor that 401(k) plans were under attack.
In the final week or two of its RFI on in-plan annuities, the Labor Department began receiving comments from the industry that has a big stake in the way 401(k) assets are distributed.
Some behavioral finance experts believe that principles of psychology could be used to boost annuity sales.
"Premiums have actually declined, and rebuilding them will be a challenge," said Conning's Scott Hawkins.
Individual annuity gross sales for the quarter just past were $4.9 billion (up from $2.2 billion a year ago), while net sales were $3.2 billion (up from $643 million a year ago.)
"The life insurance companies have a big opportunity here," said Ken Mungan of Milliman. "They should jump on it."
Today, the police, harbor workers, security services and journalists for the state media can retire in their 50s. Starting in 2013, these privileges will be abolished.
The new living benefit allows contract owners to withdraw enough to offset all or part of the income tax on their distributions.