By: Ben Judge 14/08/2019 The flexibility of pensions drawdown doesn’t always trump the secure income provided by annuities. When George Osborne, the then-chancellor of the exchequer, announced that pension savers would no longer have to use their funds to buy an annuity on retirement, many people in the pensions industry thought that annuity sales would dry up. Most savers would jump at the chance to draw an income directly from their pension funds, or simply to cash the whole thing in, advisers reasoned. A product requiring savers to lock into a fixed rate of income for life at the time of their retirement could hardly compete.But while annuity sales slumped during 2016 and 2017, the market showed signs of recovery last year. And in 2019, providers such as Legal & General have reported increased sales. That’s partly because of pension schemes buying annuity contracts in bulk, but demand from individuals has risen as well – and not only from … [Read more...] about Pension annuities are back in favour
This article is part of the series The Boomer View all By Casey Dowd Published May 24, 2019 The Boomer FOXBusiness Facebook Twitter Comments Print video The trend of Baby Boomers postponing retirement Barron's Associate Publisher Jack Otter on the economic impact from Baby Boomers working longer. Many Americans worry about running out of money in retirement -- or not having enough savings to maintain the lifestyle they have planned. In addition to Social Security benefits and pensions, annuities are one of the few retirement options that can provide guaranteed income for your lifetime. Continue Reading Below “It can serve as longevity insurance—a hedge against the financial risk of living to a very old age,” says annuity expert Ken Nuss, CEO of AnnuityAdvantage. MORE FROM FOXBUSINESS.COM... HOUSE APPROVES RETIREMENT REFORM BILL THAT AMENDS 401(K), IRA RULES ARETHA FRANKLIN'S HANDWRITTEN WILLS FOUND: … [Read more...] about Annuities a good fit for your retirement plan?
Retirement plans focus on boosting the number of participating workers and the percentage of pay being saved, but few prioritize how employees will actually fare financially once in retirement, a new study shows. The Plan Sponsor Council of America survey of 605 retirement plans found just 31 percent of plans benchmark their success based on income-replacement ratios, which are projections of a worker's retirement income as a percentage of final pay using estimates of future investment returns. More than 90 percent use participation rates. With guaranteed pensions largely gone, it's up to savers to figure out how much they can safely withdraw from their nest eggs each year without risking running out of money. Annuities aim to offload some of that risk, but it's important to bring a critical eye to any financial product geared toward the elderly. As traditional long-term care insurance premiums jumped significantly in the last decade, sales of new stand-alone policies have fallen … [Read more...] about Medically underwritten annuities can boost income for those who qualify
Sections SEARCH Skip to content Skip to site index Your Money Subscribe Log In Log In Today’s Paper Your Money | Meet the People Trying to Put a Friendlier Face on Annuities Supported by Your Money There is a boomlet in kinder, gentler annuity providers, and they want you to devote some of your savings to guaranteeing more retirement income for yourself. ByRon Lieber Dec. 21, 2018 Saving for retirement requires a strange sort of oddsmaking. On one hand, we’re somehow supposed to know what returns to expect from investments in our retirement accounts over the next 25 or 50 years. And on the other, we must apply our prediction skills to related questions about how long we’ll want to work, how long we’ll be able to work, how long anyone will be willing to pay us to work and how long we’ll live. It’s absurd to think that you can do this with any degree of accuracy. And so we return … [Read more...] about Meet the People Trying to Put a Friendlier Face on Annuities
Sections SEARCH Skip to content Skip to site index Your Money Subscribe Log In Subscribe Log In Today’s Paper Your Money | The Simplest Annuity Explainer We Could Write Supported by Your Money We define immediate annuities, fixed annuities, variable annuities and index annuities, plus give you questions to ask salespeople. ByRon Lieber Dec. 14, 2018 Annuities can be complicated. This column will not be. After I wrote two weeks ago about getting tossed out of the office of an annuity salesman, there was a surprising clamor for more information about this room-clearing topic. One group of readers just wanted a basic explainer on how annuities work. For that, read on. Another group of readers worried that those hearing of my experience might assume that all annuities are bad, and that all people who sell them use subterfuge to do so. Neither of those is true: Next week, I’ll introduce you to some … [Read more...] about The Simplest Annuity Explainer We Could Write