US EditionTerry Savage: Index-linked annuities aren't the bargain they seem
HOUSTON COUNTY, ALABAMA, JUN 26 – Index-linked annuity sales rose 38% to $65.6 billion in 2024 as these products are increasingly included in 401(k) plans despite high commissions and complex terms.
- In 2024, index-linked annuities achieved record-breaking sales of $65.6 billion, continuing a decade-long trend of annual growth for these products.
- The SECURE Act simplified the process for employers to incorporate annuity products into their 401 plans, though these complex financial products are still primarily marketed through life insurance representatives.
- Less than one in ten retirement plans include annuities, largely because most financial professionals lack the specialized knowledge needed to assess these complex products for plan inclusion.
- Life insurance agents earn commissions between 5% and 8% of the initial premium, while caps and rule changes can reduce returns and affect payouts.
- Plan sponsors seeking unbiased advice should rely on independent annuity consultants, as investment advisers need time to become qualified annuity evaluators.
24 Articles
24 Articles
Terry Savage: Index-linked annuities aren't the bargain they seem - Tribune Content Agency
The promises are enticing: stock market upside with no risk on the downside. Or market “participation” with downside “protection.” File this under too good to be true. As with all sales pitches, the devil is in the details. Index-linked annuity sales reached $65.6 billion in 2024, marking a 38% increase from the previous year, the […]
Helena Independent Record
Terry Savage: Index-linked annuities aren't the bargain they seem
The promises are enticing: stock market upside with no risk on the downside. Or market“ participation” with downside“ protection.” File this under too good to be true. As with all sales pitches, the devil is in the details.
How to Gain Traction in the Hard-to-Crack 401(k) Market
Editor’s note: Jeff Briskin is a columnist for Rethinking65. Read more of his articles here. One of the toughest markets for investment advisers to crack are 401(k) plans. This may seem counterintuitive, because retirement plan sponsors are required by ERISA to apply a predetermined set of fiduciary requirements when evaluating and selecting investment options to include in the plan. Most plan sponsors don’t have the knowledge to do this themsel…
Coverage Details
Bias Distribution
- 95% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
