New U.K. Annuity Reforms Are a Step Too Far

After nearly a decade where the United Kingdom has been the gold standard for retirement savings policy, it is about to take a step that it may regret. The U.K. has a retirement savings system that will enable virtually all of its workers to supplement their state-paid pension with retirement savings. When it is fully phased in, they will have access to a low-cost, diversified savings platform that uses automatic enrollment to encourage participation. However, starting in April, the requirement …

Are Longevity Annuities in Your Future?

I’ve been pretty critical of many annuities in the past, but there is one out there that might be worth a serious look. It’s called a Qualified Longevity Annuity Contract (QLAC) — yes, that’s a mouthful. Recent technical changes to this annuity OK’d by the U.S. Treasury offer a partial solution to the not-outliving-your-money challenge. Unlike many other annuities, this one is fairly straightforward and easy to understand. It also has some tax advantages. In fact, in five years, says Stan Haithcock, aka …

The Takeaway: Insurance Agent Jailed for Selling Annuity to 83-Year-Old With Dementia

In California, independent insurance agent Glenn Neasham was sentenced to 90 days in jail for selling a complicated annuity plan to an 83-year-old woman who shows signs of dementia. It’s a case that has elder abuse advocates cheering, but which sends “shivers down the spines” of American insurance agents.

2012 Changes May Hurt Older Americans Who Support Charities

If you give to charitable organizations, you definitely want to read this post. There are some important changes being made to how some charitable contributions are treated that can potentially affect you. Two main areas to be aware of relate to IRAs and Charitable Gift Annuities. IRAs It is unclear right now if the IRA charitable rollover law will remain in place in 2012. What this means is that unless Congress intervenes people over the age of 70½ who are …

How to Safely Build Your Retirement Income

The Washington Post has a good piece giving folks tools to help them begin to build their retirement income; fewer folks are retiring with pensions and Social Security just doesn’t cut the majority of a person’s living expenses. The piece goes into depth about annuities — how they differ and which may (or may not) be the right fit for you. Here’s a snippet: An immediate annuity is based on a simple concept: You give an insurance company a lump …