Guardian Life VP Douglas Dubitsky talks about the mutual insurer's variable annuity sales growth and how guaranteed income can “free an advisor to be an advisor again.”
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.)
But Prudential, Jackson National, TIAA-CREF, Lincoln Financial, SunAmerica/VALIC, and AXA Equitable all sold slightly more VAs in the first three quarters of 2012 than in the same period in 2011.
The current level of contributions to the 'second-pillar' is 1.5% of salary, and it should increase to 2.5% in 2013. The new laws will reduce contributions to 2% of salary in 2014, but allow participants to add 1% of their after-tax salary income.
The difference in yield between two-year and 10-year U.S. Treasury notes has been shrinking, BMO says. Recessions are associated with zero difference between the two.
Only 39% of business owners worked on a succession plan with a management consultant, personal financial advisor, or commercial banker, and only 33% have worked on a retirement plan.
The main fund, which serves about 250,000 government workers, current and retired, is only 6% funded and could run out of money as soon as 2014. Another fund, for about 80,000 teachers, is 20% funded.
Guardian has identified four different retirement styles or personalities: The Connector, The Analyst, The Seeker and The Adventurer.
Compared to Q2 2012, inflows in the third quarter were down $4.4 billion and out flows were down $6.7 billion, resulting in an increase in net cash flows of 39 percent, or $2.2 billion.
Although the 401(k) industry is gearing up to defend its tax-favored status, it’s not clear that the White House or Congress is determined to take it away.