Annuity

An annuity comes in many forms, but a simple definition is that an annuity is a contract that converts a sum of money into a series of periodic payments for an agreed upon period of time. An annuity can be thought of as a financial vehicle that converts a pool of money into a stream of income. Annuities are most useful in addressing the financial planning needs of people in or approaching retirement. Annuities are unique in the financial world because they can provide protection against the risk or outliving one’s assets (longevity risk) by guaranteeing income payments in perpetuity or any other selected amount of time. Annuities can be viewed as a type of personal pension plan. Social Security is similar to an annuity in that money contributed over the course of one’s working years is converted into a series of periodic payments that provide income during retirement.

AXA Equitable Releases Innovative Variable Annuity

AXA Equitable Life Insurance Company has been an innovator in the variable annuity industry. The company was a pioneer in the area of guaranteed living benefits with the launch of the first guaranteed minimum income benefit . AXA has recently launched a new variable annuity product named "Retirement Cornerstone." Retirement Cornerstone features a "dual account platform" that provides the potential for long-term asset accumulation and growth as well as downside protection through a guaranteed...

Glossary:

Annuity

Asset Accumulation

Asset

Guaranteed Living Benefit

Guaranteed Minimum Income Benefit

Key Phrases:

Retirement Cornerstone

Read more about AXA Equitable Releases Innovative Variable Annuity
Log in to post comments

Key Phrases:

Glossary:

Annuity

Asset Accumulation

Asset

Guaranteed Living Benefit

Guaranteed Minimum Income Benefit

Key Phrases:

Retirement Cornerstone

Annuities Suggested as Part of Pension Reform in China

China's pension system is in need of reform. The current pay-as-you-go system only covers 30 percent of the population and is funded by a 28 percent payroll tax on participating companies. The remainder of the system is unfunded with liabilities that total almost 140 percent of China's current GDP. Boston University Professor Laurence Kotlikoff provides an interesting set of remedies in a recent op-ed piece. Included in Kotlikoff's set recommendations is the notion of mandatory, state-...

Glossary:

Key Phrases:

Read more about Annuities Suggested as Part of Pension Reform in China
Log in to post comments

Key Phrases:

Glossary:

Key Phrases:

Incremental Changes in the Variable Annuity Market

Much has been said about the impact of the financial crisis on variable annuity products and insurers. Wall Street Journal columnist Leslie Scism recently wrote about the first wave of variable annuity product redesigns to hit the post financial crisis market. Common themes include simplicity, cost efficiency and conservative benefit features. Scism provides some very good detail on the most recent wave of guaranteed living benefit features. Source: Wall Street Journal Full Story

Glossary:

Annuity

Guaranteed Living Benefit

Variable Annuity

Key Phrases:

Financial Crisis

Read more about Incremental Changes in the Variable Annuity Market
Log in to post comments

Key Phrases:

Glossary:

Annuity

Guaranteed Living Benefit

Variable Annuity

Key Phrases:

Financial Crisis

Lower Volatility May be Short-Lived

Glossary:

Sequence of Returns Risk

Key Phrases Autotag:

Read more about Lower Volatility May be Short-Lived
tom's blog
2 comments
Log in to post comments

Key Phrases:

Glossary:

Sequence of Returns Risk

Key Phrases Autotag:

Demand for Longevity Risk Picks-up with Lower Volatility

Demand for longevity risk has been returning to the UK pension market. High levels of volatility during the financial crisis deterred many players in the pension buyout market. The return to normalcy in the capital markets may, in fact, be contributing to under-pricing of longevity risk among those who are providing solutions to UK pension plan sponsors who seek to offload longevity-related liabilities. A worthwhile article in the Financial Times discusses the range of options that are...

Glossary:

Key Phrases: