Annuity News

Life Expectancy in the United States Reaches Record High of 77.9 Years

The Centers for Disease Control and Prevention (CDC) reports that life expectancy in the United States reach almost 78 years. Over the past decade, life expectancy has increased 1.4 years from 76.5 to 77.9 years of age. Cancer and heart disease were the leading causes of death, contributing to 48.5% of all deaths. Source: CDC Full Story

Glossary:

Life Expectancy

Key Phrases:

Cancer

Read more about Life Expectancy in the United States Reaches Record High of 77.9 Years
Log in to post comments

Key Phrases:

Glossary:

Life Expectancy

Key Phrases:

Cancer

Pension Plans Suffering from Poor Private Equity Returns

Some of the world's largest investors are suffering as a result of poor returns from private equity investments made over the past decade. Pension funds representing public sector employees in California, Oregon and Washington have invested $53.8 billion in various private equity funds since 2000. However, these large investors have recouped just $22.1 billion of that original investment. In contrast, the managers of some of the larger private equity funds have fared well over the past several...

Glossary:

Pension

Read more about Pension Plans Suffering from Poor Private Equity Returns
Log in to post comments

Key Phrases:

Glossary:

Pension

Inflation Could Potentially Devastate Fixed Annuities

Rockingham Retirement, a British retirement income specialist, suggests that inflation could wipe out the spending power of UK pensioners who are receiving fixed income from standard annuities. The Financial Times Adviser article indicates that a 5 percent rate of inflation could erode 40% of the value of an 80,000 pound pension fund within 10 years. In 1975, following the early 70s recession, inflation shot up from 6.3 per cent at the start of the decade to 24.2 per cent. Five years later, in...

Glossary:

Key Phrases:

Read more about Inflation Could Potentially Devastate Fixed Annuities
Log in to post comments

Key Phrases:

Glossary:

Key Phrases:

Longevity Drugs Begin Clinical Trials

A group of drugs that focus on reversing the effects of aging and age-related disease are in the beginning stages of clinical trials. Many of the drugs are intended to tap into the human body's own resources to resist disease and old age. For example, sirtuin activators attempt to mimick the effects of caloric restriction which has been shown to have a correlation with longevity in experiments with mice. Resveratrol is an example of a sirtuin-related drug that is in clinical trial. Source: New...

Glossary:

Longevity

Resveratrol

Sirtuin

Read more about Longevity Drugs Begin Clinical Trials
Log in to post comments

Key Phrases:

Glossary:

Longevity

Resveratrol

Sirtuin

Reverse Mortgages Need to be Viewed with More Objectivity

Reverse mortgages and annuities share some key similarities: Both financial vehicles have the potential to provide stable sources of income to retirees. Reverse mortgages and annuities both suffer from relentlessley negative coverage in popular financial media. As a result, reverse mortgages and annuities are largely misunderstood. Objective information and commentary are hard to come by. Even public officials who have responsibility for issues related to reverse mortgages struggle with the...

Glossary:

Key Phrases:

Read more about Reverse Mortgages Need to be Viewed with More Objectivity
Log in to post comments

Key Phrases:

Glossary:

Key Phrases:

Hedging Regulatory and Tax Risk through a Roth IRA Conversion

Income limits on Roth IRA conversions are set to go away in 2010. This opens-up an opportunity for many to benefit from the tax advantages associated with the Roth IRA. Conversion may also make sense as a hedge against the distinct possibility of tax increases and higher tax brackets for future retirees. That said, the Roth IRA also happens to be an enormously efficient vehicle if there is a bequest motive or desire to pass assets to heirs: "if you want to leave a legacy to your heirs, a Roth...

Glossary:

Read more about Hedging Regulatory and Tax Risk through a Roth IRA Conversion
Log in to post comments

Key Phrases:

Glossary:

In-Plan Annuities Show Promise Despite Obstacles

An " in-plan annuity " refers to an annuity option that exists within a 401k plan. The notion of an annuity-based retirement income option within a 401k plan is a relatively new concept. Advocates of in-plan annuities--which include key members of the Treasury Department and Congress--believe that partial annuitization is important for the retirement security of the millions of Americans whose access to stable sources of pension income is largely limited to Social Security . There are, however...

Glossary:

Key Phrases:

Read more about In-Plan Annuities Show Promise Despite Obstacles
Log in to post comments

Key Phrases:

Glossary:

Key Phrases:

Record Sales in Fixed Indexed Annuity Market

Total sales of fixed indexed annuities reached $8.3 billion during the second quarter of 2009. This represents an increase of 18.3% from the previous quarter and an increase of 21.2% from the same period a year ago. The sales momentum comes despite industry headwinds which include fewer insurance companies and fewer product offerings. Aviva was the top insurance company in the space with a 20% market share while the top selling indexed annuity product was the MasterDex X from Allianz . Source:...

Companies:

Key Phrases:

Glossary:

Fixed Indexed Annuity

Read more about Record Sales in Fixed Indexed Annuity Market
Log in to post comments

Key Phrases:

Glossary:

Fixed Indexed Annuity

Key Phrases:

Insurance Companies

Companies:

Allianz

Aviva

Bulk Purchase Annuity Market Booming as Pension Deficits Swell

The UK pension market is in tough shape post financial crisis. According to a Bloomberg article, "about 87 percent of the U.K.’s 7,400 final salary pension plans are in deficit following the financial crisis." This crisis offers an unprecendented opportunity for companies that insure the pension liabilities of private corporations through bulk purchase annuities. “The bulk-purchase annuity market is going to continue to be a good market because companies want to get their pension...

Glossary:

Bulk Purchase Annuity

Volatility

Key Phrases:

Financial Crisis

Read more about Bulk Purchase Annuity Market Booming as Pension Deficits Swell
Log in to post comments

Key Phrases:

Glossary:

Bulk Purchase Annuity

Volatility

Key Phrases:

Financial Crisis

Study Highlights Need for Bonds in Retirement Portfolios

The Center for Retirement Research at Boston College has released a study that highlights the need for a greater focus on the use of bonds in retirement. The study indicates that 86 percent of households approaching retirement hold a bank account, while only 33 percent own stocks directly and only 7 percent own bonds directly. The author suggests that the focus on safe, highly liquid accounts that provide a guaranteed return of capital is short-sighted and often risky. The notion of a return on...

Glossary:

Key Phrases: