Mark J. Warshawsky is Director of Retirement Research at Towers Watson.

Dr. Warshawsky served as assistant secretary for economic policy at the U.S. Treasury Department from 2004-2006 and he has held senior level economic research positions at the Federal Reserve Board, the Internal Revenue Service and TIAA-CREF.

The Penn Mutual Inflation Protector variable annuity was launched in November 2010.

This variable annuity product incorporates a living benefit feature and is designed to provide owners with an income base that keeps pace with the rate of inflation.

The income base of the Penn Mutual Inflation Protector increases based upon the greater of:

The popularity of living benefit features is one thing that seems clear when looking at variable annuity sales data.  The vast majority of variable annuity sales include one of several living benefit or guaranteed living benefit features. 

National Underwriter reports that Bellevue, Washington-based Symetra will be selling a line of low cost variable annuities that do not contain any living benefit features. 

Apparently Symetra considers the GLB-free variable annuity as an underserved niche. 

The ultra-low interest rates that exist at the moment are affecting insurance company profitability and operations.

On the profitability side, current policy premiums must be reinvested into bonds that have low yields and are fully priced.

Investment income and underwriting profitability (which is often rare) are the main components of insurance company profitability.  As large fixed income investors, insurance companies are challenged in the current interest rate environment.

Annuity persistency refers to whether people hold on to their existing annuity products or exchange them--typically through a Section 1035 exchange--for new products.

Higher levels of persistency suggest that annuity owners are sticking with existing products which are likely more valuable than what would be available in the current market through an exchange.

Glenn Daily is one of the top financial advisors in the country. 

Specializing in life insurance and annuities, Glenn is widely recognized for his deep technical expertise and high level of objectivity as his services are strictly on a fee-only basis.

The annuity buying decision is complex and can be affected by commission-based financial incentives. Glenn’s writing, interviews and services are a great way to cut through some of the clutter.

Lorry Stensrud, a seasoned executive turned entrepreneur, is on the leading-edge of retirement income product development with his new Venture Achaean Financial.

Achaean’s Income Plus+ product provides a relatively high level of guaranteed starting income while maintaining both liquidity and upside potential.

Read on for a glimpse into the most recent generation of product development in the retirement income industry.

Jerry Golden--often referred to as the father of variable life insurance and variable annuities--has had a distinguished career as an innovator and entrepreneur in both the insurance and personal retirement businesses.

Jerry most recently spent four years as president of the Income Management Strategies Division at MassMutual after selling his business to the company in June, 2005.

Since leaving MassMutual in May, 2009, Jerry has been actively developing a new venture which will deliver yet another set of innovations to the personal retirement marketplace.