It’s morning in America for manufacturers of deferred income annuities, or DIAs. Are they a passing fancy, or do they offer the perfect balance between risk and reward?
At the LIMRA-Society of Actuaries Retirement Industry Conference in Baltimore last week, Scott Stolz from Raymond James, Greg Jaeck from Edward Jones and Jarrod Fisher from Simplicity Financial Distributors delivered frank opinions about annuities and annuity issuers.
Many factors are driving the increase in indexed annuity sales: More manufacturers, better products, more distributors, competitive commissions, aging boomers, and relaxed regulation. But does the bubble contain the seeds of its own deflation?
Israel has found that even a mandatory defined contribution system can’t resolve all of the behavioral, economic, or administrative issues that prevent low-income and minority workers from saving for retirement. (Photo: Mahane Yehuda market in Jerusalem.)
The exit from the Fed’s QE and zero-interest-rate policies will be treacherous, writes this NYU Stern School of Business economist. Exiting too fast will crash the real economy, while exiting too slowly will first create a huge bubble and then crash the financial system.
Here are thumbnail descriptions of deferred income annuities from American General, Guardian Life, MassMutual, MetLife, New York Life, Northwestern Mutual, The Principal, Prudential and Symetra.
“This is all about what you do with other people's money – you can't get more political than that. It’s very difficult to lay down a hard and fast rule that will work for decades to come,” said Roger McCormick.
A report by the Organization of Economic Cooperation and Development says compulsory participation in national defined contribution plans is more effective and less expensive than auto-enrollment programs.
Transamerica launches a new service for small-plan sponsors, The Online 401(k) jumps into the auto-IRA business, and Fidelity announces that small-plan balances have rebounded 64% since the nadir of the financial crisis.
The trend toward embedding risk-management mechanisms inside variable annuity portfolios continues.
Brief or late-breaking items from MassMutual, Nationwide and ASPire.