Manish Malhotra’s FIAP platform, set to launch next year, will enable advisors to build retirement income streams out of laddered TIPS, immediate annuities, and withdrawals from balanced portfolios.
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.)
Only advisors who are self-employed have the autonomy to use the fiduciary standard when working with clients.
At the same time, a dozen large insurance companies saw their VA sales drop by double-digit percentages from the second to the third quarter of 2010, according to Morningstar data.
“The current interest rate environment poses a challenge for issuers of these annuities because it pressures profitability," said Beacon Research president and CEO Jeremy Alexander.
But about one in five of over 20 million participants had loans outstanding at the end of 2009, up from 18% at both year-end 2008 and year-end 2007.
The prevalence of retiree medical plans slid to its lowest point ever in 2010, with just 25% of large employers offering an ongoing plan to retirees under age 65.
The current minority government has agreed to increase the official retirement age to 66 in 2020, but has not yet passed any legislation.
There are two problems with Curtis Cloke's analysis of the relative merits of fees versus commissions for income annuities ("Fees vs. Commissions in SPIA Sales," RIJ, 11/17/10), writes Glenn Daily.
Late-breaking items from Prudential, Genworth and New York Life...