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.

China's Annuity Market Developing Slowly

Despite the demographic challenges associated with an ageing society, individual annuities are non-existent in China. Some individuals in China do have access to what is referred to as an enterprise annuity . Enterprise annuities are a form of supplemental pension plan that is supported by the Chinese government. Enterprise annuities were enabled through legislation that went into effect in May of 2004. In order to offer enterprise annuities to employees, Chinese employers are required to...

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Annuity Business Drives Earnings Momentum at MetLife and Prudential

Life insurance companies MetLife and Prudential Financial both reported quarterly earnings that exceeded analysts' estimates. MetLife reported record variable annuity sales and a sharp rise in its retirement product fees. Prudential also reported strength in its annuity business. While annuity sales were strong at both companies, higher hedging costs had an adverse impact on the reported earnings of MetLife and Prudential. Source: Reuters Full Story

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New Health Care Expense Software is Taking Aim at a Retirement Planning Void

There is a strong case to be made for health care as the linchpin of retirement planning. Virtually every...

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Retirement Income Industry Association

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HealthView Services

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RMS Model Provides a New Perspective on Longevity Risk

Risk Management Solutions (RMS) is well known as a leader in the area of catastrophe modeling and analytics. The company provides its services to a broad range of insurers, reinsurers, consultants and capital markets participants who are active in the property and casualty insurance industry.

More recently, the company has developed resources that focus on life and health risks. Though initially focused on...

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Regenerative Medicine

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5 Reasons to Question the Recent Indexed Annuity Article in Bloomberg

An article on indexed annuities appeared in Bloomberg yesterday (click here to read).

The article is substantive and comes from a credible source. It is provides a good explanation of why surrender fees need to be a front-and-center consideration for any consumer considering the purchase of an annuity.

Upon further reflection, though, I realized that much of the article is essentially a more polished version of the same old saw on annuities, and here are 5 reasons why:

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