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Aging population fuels demand for annuities

Asset managers are expected to look for markets and products to offset the effect of fee compression, despite continued growth in global assets under management, according to a report from Cerulli Associates. In the US, an aging population is driving interest in products such as annuities, the report states. PlanAdviser…

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The rules for fixing a missed RMD

It can be easy for retirees to make mistakes with required minimum distributions, but the Internal Revenue Service may grant taxpayers a reprieve from the hefty 50% penalty they would normally face. Taxpayers must be sure to remedy the situation and file a Form 5329 for each year in which…

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Execs: Aging population needs what annuities provide

The CEOs of two major insurers say that retiring baby boomers need guaranteed-income benefits that are unique to annuities and that the industry needs to better explain annuities. “We have a moral responsibility to help people retire with grace and dignity,” Transamerica CEO Mark Mullin says. ThinkAdvisor

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Survey: Consumers’ knowledge of annuities comes up short

A Fidelity survey shows individuals know even less about annuities than they do about bank certificates of deposit. Among those responding, 60% didn’t know the current rate of return on CDs, while 76% didn’t know the current rate of return on deferred fixed annuities. ThinkAdvisor

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5 key issues to consider when recommending an FIA to a client

Annuities are the only financial products designed to generate lifetime income, and fixed indexed annuities have been garnering more attention, writes Ray Kathawa of M&O Marketing. He poses five questions for advisors to ask to help determine whether a specific FIA makes sense for a client. ThinkAdvisor

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Researcher: Longevity annuities improve retirement security

Olivia Mitchell, a Wharton professor of business economics and public policy, analyzed the financial consequences for two people aged 66, one with the option of buying deferred longevity income annuities and one without. “The bottom line is that people with the access to the deferred annuities are substantially better off,…

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Commentary: Sell annuities to grow a business

Given market volatility, recommending annuities to clients is a way to expand a business and to meet clients’ needs, writes Chris Conklin, vice president of individual annuities at The Standard. Stability, safety and ease of use are among annuity benefits Conklin cites. ThinkAdvisor

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Research: Low annuity demand a product of perceived unfairness

The lack of demand for lifetime annuities may be due in part to a sense that it is unfair for the insurer to keep excess funds if the annuity holder dies, according to an academic research paper. However, Shlomo Benartzi and Suzanne Shu of the University of California at Los…

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Expert: Investors can profit in the face of volatility with annuities

For risk-averse investors who still want to profit in a volatile market, financial industry veteran Craig Hawley suggests considering fixed annuities, fixed-indexed annuities or variable annuities with principal protection. He also notes that working with an advisor can help investors keep emotions in check during volatile market bouts. U.S. News…

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IRIC: Slow growth, volatility could boost interest in annuities

Market volatility and slowing economic growth are likely to make participants of defined-contribution plans interested in products that offer downside protection, according to the Institutional Retirement Income Council. These include deferred annuities, guaranteed-income benefits, stable-value contracts, alternative funds and real-asset funds, IRIC says. PlanAdviser online

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