Annuity News

Conservative is in the eye of the beholder when it comes to target date funds. Very generally, target date funds are mutual fund offerings that automatically shift asset allocations to a more conservative profile as the fund owner approaches retirement age. In other words, a "2015" fund may be purchased by someone intending to retire on or around 2015. This 2015 fund will likely move towards a higher bond and lower equity allocation as 2015 approaches. It turns out that target date funds can be...

The IRA and Roth IRA contribution limits for 2009 remain at $5,000--the same as 2008. Persons turning 50 years old this year are able to make a $6,000 contribution to either the traditional IRA or Roth IRA. Phase-out ranges for Roth IRAs are changing in 2009. Adjusted gross income levels determine whether persons are able to contribute to a Roth IRA. In 2009, contribution levels begin to decrease when adjusted gross income exceeds $105,000 for individuals and $166,000 for joint filers. Roth IRA...

A recent article discusses the challenges that retirees and near retirees face in the UK: "Dr Ros Altmann, one of Britain's top pensions experts and author of the Planning For Retirement report, says: 'The old idea that the stock market can always be relied on to deliver longterm strong returns has left millions facing an impoverished old age." While the UK has compulsory annuitization , there are many aspects of England's financial system and demographic profile that are similar to the United...

Retirement experts are working through the Retirement Security Project in Washington to develop concepts that would increase annuity ownership within 401k plans. Concepts include providing 401k participants with the ability to test drive annuities through an "automatic trial income strategy." In other words, at retirement about half of a person's plan assets would be placed in a trial income plan that would pay out a monthly annuity income for two years. Participants would then have the ability...