Source: LIMRA's Guaranteed Income Annuities
Report, IRI's 2010 Annuity Distribution Survey
The Treasury Department just changed the tax rules so people can now invest IRA money in deferred income annuities
without worrying about required minimum distributions.
ERISA plans can't discriminate on sex; income annuities
use gender-specific mortality tables.
American General Life is shining its spotlight on income annuities
as part of a back-to-basics strategy, said John Rafferty, vice president of annuity marketing.
BOSTON -- Fidelity Investments([R]) today announced it is expanding its retirement income product offering to include deferred income annuities
, which enable pre-retirees to turn a portion of their savings into a guaranteed, pension-like stream of lifetime income in the future.
In an effort to show how annuities can help to manage longevity risk in retirement, Northwestern Mutual recently partnered with academics Michael Finke, Professor and Director of Retirement Planning and Living, Texas Tech University and Wade Pfau, Professor of Retirement Income, American College to demonstrate the role of deferred income annuities
(DIA) in retirement portfolios.
When payout rates for income annuities
are released with the new mortality tables, you will see the payout rates drop because of an adjustment in longevity credits.
New York Life leads the $10 billion income annuity market with 33 percent market share for immediate income annuities
and 40 percent market share for deferred income annuities
, according to an industry source.
Indexed and income annuities
were down 15 percent and 7 percent, respectively.
If your clients, or even you, are focused on other types of retirement savings vehicles, they could be missing out on the benefits of income annuities
Assets in these income annuities
grow at a fixed rate for a period of time, after which the contract-holder can begin taking payments or opt to postpone them further.
Academics, policymakers and AARP have all cited the need among boomer retirees for income annuities