What should we, or could we, do to make annuities a more attractive substitute for employer pensions? Published by Jane the Actuary View all posts by Jane the Actuary
3 thoughts on “Forbes post, “Three Problems With Annuities – And How To Fix Them””
I completely agree and think most retirees need to convert a portion of assets to an immediate annuity. Medical underwriting seems like step one
I sell annuities but I have never sold one where a client paid one cent in expenses. I’m also invested in annuities. One of my annuities just came up for renewal. It was a 10 year guarantee fixed annuity earning 6 percent guaranteed for 10 years. Not one penny was deducted for expenses while the money compounded tax-deferred. So, please explain why you deliberately fail to mention fixed annuities. Maybe it’s because you don’t know the difference between fixed and variable annuities?
I administer $100m 401k plan and while I agree annuities from the plan are a great idea, the mobility of employment is not considered. Employee turnover is increasing and most move the 401k asset to an IRA. even those that retire move the funds.
Even if the annuity is sufficient to keep the assets, now the itinerate employee has a multitude of small annuities to manage.