Long-term care insurance (LTC) and longevity insurance
can mitigate serious retirement risks.
They've seen the variability of the economy through the financial crisis and they see the need for protection, some kind of longevity insurance
A new report, De-risking journeys of large pension schemes, which surveyed over 40 of the UK s largest private sector pension schemes, each with over Au1billion in pension fund assets, shows that: Nearly two-thirds, (64%) are looking to arrange some form of insurance de-risking solution to cover their liabilities, rather than retain and manage the risk themselves; Nearly half, (47%) of interested schemes said that they were looking to arrange buy-ins or buyouts in the next 5 years; and Over two thirds, (67%) of schemes interested in longevity insurance
, were looking to implement a solution in the next 5 years.
Tools like guaranteed income annuities, longevity insurance
, long-term care insurance, hybrid policies, revocable living trusts and RMD withdrawal strategies are too often ignored in favor of accumulation-focused methods that are much more comfortable to advisors.
is a type of annuity that can address that challenge.
Global Banking News-July 2, 2014--New US tax rules to allow workers to purchase longevity insurance
Pension buy-in transactions have just arrived and longevity insurance
will follow, but demand will likely be modest until there is greater awareness of pension longevity risk in the United States.
Many people have heard the term, but few have seen the power of longevity insurance
For example, they even provide a longevity insurance
, which would be typically purchased at or before retirement, but would not commence payments until 20 years after retirement.
Indeed, none other than the Obama administration has started touting these annuity-like vehicles, which are designed as longevity insurance
"wrappers" around defined contribution plans, as a potential solution to the looming retirement income shortfall.
Various Social Security reform proposals include options intended to address concerns about benefit adequacy for vulnerable groups: (1) Guaranteeing a Minimum Benefit; (2) Reducing Work Requirements for Eligibility; (3) Supplementing Benefits for Low-income Single Workers; (4) Adopting Earnings Sharing; (5) Reducing the Marriage Duration Required for Spousal Benefits; (6) Providing Caregiver Credits; (7) Increasing Survivor Benefits; and (8) Providing Longevity Insurance
The strong levels of competition in the longevity insurance
market are also a factor in opening up this market.