Annuity News

Is Your Annuity Safe?

Credit risk or the possibility of company insolvency are top of mind for many people who are considering an annuity purchase. However, as indicated in the Wall Street Journal article referenced below, 90% of policyholders impacted by recent insolvencies have received full benefits--largely through a combination of remaining insurer assets and funds provided by state guaranty associations. Due diligence and--to the extent possible--some comparison shopping are encouraged before purchasing any...

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Moody's

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Consider Annuities to "Build a Pension and Salvage Your Nest Egg"

An in depth and very worthwhile article in the Wall Street Journal discusses annuities in the context of the financial crisis. Surging demand for annuities--particularly fixed--is a natural reaction to the volatility and pain experienced over the past couple of years. That said, would-be buyers need to inform themselves and consider the pros and cons associated with the entire landscape of options. Topics addressed in the article include: 1) The notion of creating a personal pension 2) Annuity...

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Advanced Life Deferred Annuity

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Advanced Life Deferred Annuity

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Stanford University Hosts Longevity Conference

The Stanford Center on Longevity recently hosted a conference covering a range of topics that include demographics , stem cells, genetics and Social Security . The Center on Longevity is a great information source for anything related to aging, the impact of regenerative medicine on aging, demographics, public policy, financial security, etc. Conference highlights--which are very interesting and worth a quick read--are published on the Center's site. Source: Stanford Center on Longevity Full...

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Longevity

Regenerative Medicine

Social Security

Demographics

Genetics

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Longevity

Regenerative Medicine

Social Security

Demographics

Genetics

View Retirement Planning Calculators with a Heavy Dose of Skepticism

Consumers and financial advisors are encouraged to view retirement planning calculators and software as useful but limited tools. Consider, for example: All models are based on assumptions, so poor assumptions can lead to faulty results and decisions. Any model result is probabilistic. In other words, there is no certainty with the output. Be conservative when assessing the validity and likelihood of results. Hire a fiduciary as your "pilot." The person driving the model results should have...

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Longevity Risk Listed as Top Retirement Risk - "Biggest and Most Difficult to Figure Out"

A list of ten risks faced by retirees includes the obvious such as stock market risk , but also includes issues that may not be top-of-mind for many retirees such as inflation risk and interest rate risk . Longevity risk is at the top of the list. Immediate annuities and the longevity annuity are mentioned as a potential solutions to the risk of outliving one's assets: "Given that, what's the best way to manage that risk? Social Security , traditional pensions and payout annuities all promise...

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Advanced Life Deferred Annuity

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Advanced Life Deferred Annuity

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Longevity Insurance Creates Spending and Investment Flexibility for Retirees

One in three baby boomers is expected to live into their nineties. Longevity risk or the possibility of outliving one's assets is something that should be considered by all near and current retirees. Longevity insurance or a longevity annuity is one of the most efficient ways to hedge longevity risk. Relatively large amounts of guaranteed income later in life can provide peace-of-mind and financial flexibility earlier in retirement. "Because the insurance company has held your money for a long...

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Advanced Life Deferred Annuity

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Retirement

Longevity Insurance

Income Annuity

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Advanced Life Deferred Annuity

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Longevity Insurance

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TARP Funds Likely Extended to Certain Life Insurers

The U.S. Treasury Department is expected to annouce that TARP funds will be extended to certain life insurers that have bank holding or thrift status. The potential TARP funds are seen as most beneficial for those life insurers whose capital bases have suffered most during the financial crisis. Strengthened capital bases are likely a positive for consumers of life and annuity products, while industry shareholders and executives would suffer from dilution of their ownership and increased...

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Focus on Income Needs Rather than "Magic Number" When Planning for Retirement

Determining income needs is the critical factor in successful retirement planning . Reaching a desired amount of savings is useful, but translating that lump sum of savings into an income stream that lasts for many years is the most important financial planning challenge that retirees face. "“When it comes to retirement planning, Americans need to look beyond the ‘number,’” said Fishbein. “We all know what the number is: That magic dollar figure that, when reached, means you’re set in...

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The Vast Majority of Variable Annuities Sold in 2008 Include Some Form of Guaranteed Living Benefit (GLB)

Guaranteed living benefits ( GLB ) are optional guarantees that can be embedded into variable annuity products. A recent variable annuity survey from the actuarial and consulting firm Milliman indicates that GLBs have experienced rapid growth consumer adoption over the past several years. 96% of variable annuity sales in 2007 and the first half of 2008 included some form of GLB. "Sales of VAs that offered a GLB during calendar year 2004 averaged 87% of total VA sales, increasing to 95% in 2005...

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Annuity

Consumer

Guaranteed Living Benefit

Living Benefits

Variable Annuity

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Annuity Sales

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Annuity

Consumer

Guaranteed Living Benefit

Living Benefits

Variable Annuity

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Annuity Sales

Immediate Annuities are a Critical Aspect of Retirement Planning

Article discusses the importance of immediate annuities--particularly in light of hedging longevity risk . Pros and cons of immediate annuities relative to other forms such as variable and indexed annuities are addressed. A solid article written by an attorney that is likely focused more on an advisor than a consumer audience. "The retirement crisis facing our country for the next 15 years is profound. The Social Security system is under great pressure, lifetime pensions guaranteed by employers...

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