A study by the Employee Benefit Research Institute found that low-income households with income from pensions or annuities were less likely to have a household budget deficit than those who didn't have that kind of regular income. The study also showed high medical expenses increased the likelihood of retirees running a budget deficit.
Financial advisors say younger clients need to understand that lengthening life spans can have consequences for them, not just for the elderly. These include a tight job market and the possibility that they'll be caring for children and elderly parents at the same time.
Securian Financial is hiring regional vice presidents to oversee the sale of individual annuities through the bank distribution channel. The company will offer existing annuities through the bank channel, as well as develop annuities for it.
Salesforce has introduced an artificial intelligence platform called Einstein Analytics that is designed for financial-services professionals. The company says the platform's predictive algorithms can identify the likelihood clients are unhappy and will take their business elsewhere.
The House Financial Services Committee has unanimously passed a bill to protect whistleblowers from retaliation by employers. The measure would redefine "whistleblower" to make a worker who reports misconduct to an employer but not to the Securities and Exchange Commission protected by an anti-retaliation provision of the Dodd-Frank Act.
The Financial Industry Regulatory Authority has released guidance on what broker-dealers must do to comply with anti-money-laundering requirements. The regulatory notice gives examples of red flags that require financial professionals to file suspicious-activity reports.
Financial firms' compliance budgets are being cut at a time when some companies already aren't allocating sufficient resources to compliance, says Pete Driscoll, director of the Securities and Exchange Commission's Office of Compliance Inspections and Examinations. "We cannot underscore enough a firm's continued need to assess whether its compliance program has adequate resources to support its compliance function," he says.
Over half of middle-income Americans aged 75 and older will not be able to afford out-of-pocket medical fees and rent for assisted living 10 years from now, according to a study by the National Investment Center for Seniors Housing and Care at the University of Chicago. The study estimates assisted living and medical expenses will cost $62,000 a year.
A Pensions & Investments editorial calls for an exploration of ways to deal with retirees' longevity risks. The publication notes that two recent proposals by prominent economists have some shortcomings, "but there might be ways to improve them."
Retirement anxiety is growing among baby boomers, many of whom have little to no retirement savings, forcing more boomers to postpone retirement. IRI's annual survey of boomers found that 45% have zero savings for their golden years, and even those with savings are lacking in a number of retirement preparedness factors. Read the report.
Leading off this edition of IRI Insight is an article examining how to best assist women with their unique retirement-planning challenges, such as earnings lag, time pressures and a fundamentally different approach to decision-making. Also in this issue: helping clients understand options to preserve their savings; casting a new light on the value of annuities through the lens of retirement realities; and examining the effect of sequence-of-returns risk on retirement savings. The issue also includes a snapshot of government retirement plan contribution and benefit limits and Medicare income-based premiums for 2019. Get your copy here.