Annuity News

There is an increase in demand for financial planning services among employers. The planning services are paid for by the employer and are offered as a benefit to employees. Firms that offer the planning services such as Ernst and Young and PricewaterhouseCoopers have notices a significant uptick in their business. Business is up 20% from the previous year at E&Y and 25% at PWC. The financial crisis has likely been a catalyst for the increased demand as many employees are confused and...

The New York Times has recently run a series of articles that discuss various aspects of Social Security . One of the most prominent and frequently asked questions among readers involves when to start receiving Social Security benefits. There decision is complex and there are many trade-offs. The Times article referenced below is a great resource for anyone wrestling with decisions related to Social Security. Source: New York Times Full Story

MetLife recently announced the launch of a simple, low cost variable annuity called Simple Solutions. The Simple Solutions variable annuity will be sold through banks and is intended to address retirees and near-retirees in the range of 60-80 years of age. Features and highlights include: A guaranteed lifetime withdrawal benefit of up to 6% of the initial investment if withdrawals begin after age 76, 5% between 65 and 75, and 4% if before age 65. Automatic annual increases of the GLWB if the...

Writing in the Huffington Post, CBS MoneyWatch Editor in Chief Eric Schurenberg says he thinks it is time to consider major changes for 401k plans. His criticisms include: 401k plans randomly create winners and losers. 401k plans leave people poor. 401k plans expose people to longevity risk . Comments on longevity risk include: The shame of this is, longevity risk can be insured away by averaging out the risk over an entire population. Every annuity does this. Why not the national retirement...