Several changes to the retirement product market are in the works and anyone considering the use of guarantees for future income needs to be aware of all options.
Robert Powell of Market Watch writes about several of these changes and what it means for consumers in this article.
Some companies are leaving certain markets entirely while others are reducing current benefits or raising rates. This is sure to have an impact on guaranteed income and long-term care products.
Really what the article calls for is the need for consumers to do more due diligence when choosing products and to seek quality advice as a means to properly manage guarantees within a well rounded retirement income plan.
A specific example of this comes with the reduction to the most popular variable annuity, marketed under the banner of Retirement Red Zone by Prudential. A press release that explains the changes in guaranteed income benefits can be found here.
A more general assessment of an industry-wide change to variable annuities is highlighted in this Investment News article. Simply put, these reductions mean that it will take more capital to produce the same level of guarantee. Don't tell me that won't have some impact.
Recent changes to the GLWB Report from Annuity Straight Talk outline the fundamental differences between guaranteed income features of fixed index and variable annuities. It is important to understand these differences so you'll be able to decide where to find the best value for your investment dollars.
What you should take away from this news is the fact that changes to the features of guaranteed products don't mean those options are off the table but that you need help from someone who stays on top of these changes.
Annuity Straight Talk is the resource for quality information and unbiased advice. Please browse the site for information on how these products work and how they can take the complication out of retirement planning.
As the new report has not been published to the site yet, call or email to have one sent directly to you. All members will be updated when the finishing touches are complete.
Feel free to call with further questions about specific products or strategies, or simply visit the appointment page to schedule a meeting.
Bryan J. Anderson
800.438.5121 [email protected]