Latest news with #annuity
Yahoo
22-07-2025
- Business
- Yahoo
Milliman analysis: Competitive pension risk transfer costs continue to fall, slip to 100.2% during June
Competitive bidding process saves about 3.7% of buyout costs as of June 30 SEATTLE, July 22, 2025--(BUSINESS WIRE)--Milliman, Inc., a premier global consulting and actuarial firm, today announced the latest results of its Milliman Pension Buyout Index (MPBI). During June, the estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process dropped from 100.8% to 100.2% of a plan's accounting liabilities (accumulated benefit obligation, or ABO). That means the estimated retiree pension risk transfer (PRT) cost is now 100.2% of a plan's ABO. During the same time period, the average annuity purchase cost across all insurers in our index fell from 104.4% to 103.9%. The competitive bidding process is estimated to save plan sponsors about 3.7% of PRT costs as of June 30, 2025. "The competitive annuity index showed additional improvement in June, getting even closer to break-even at 100.2%, as accounting rates fell even more than insurer annuity purchase rates," said Jake Pringle, Milliman principal and co-author of the MPBI. "This has been encouraging for plan sponsors, as deals seemed to heat up in the second quarter and many have PRT projects set to complete by the end of the year." The MPBI compares the FTSE Above Median AA Curve to the annuity purchase composite interest rates from nine insurers to estimate the competitive and average costs of a PRT annuity de-risking strategy. Individual plan annuity buyouts can vary based on plan size, complexity, and competitive landscape. View the complete Milliman Pension Buyout Index. To receive regular updates with Milliman's pension buyout analysis, contact us at pensionbuyout@ About Milliman Milliman leverages deep expertise, actuarial rigor, and advanced technology to develop solutions for a world at risk. We help clients in the public and private sectors navigate urgent, complex challenges—from extreme weather and market volatility to financial insecurity and rising health costs—so they can meet their business, financial, and social objectives. Our solutions encompass insurance, financial services, healthcare, life sciences, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. Visit us at View source version on Contacts Jake PringleMilliman, +1 713 202 Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
CBS News
22-07-2025
- Business
- CBS News
Are annuity rates good right now? Here's what experts think.
Annuity rates are competitive now amid an overall elevated rate climate. Some providers are currently offering immediate annuity rates above 7% for a 65-year-old, compared to the 4% to 5% range when rates were near historic lows. But recent Federal Reserve policy changes and inconsistent inflation data have started to create uncertainty about future rate direction. This makes it harder to tell whether the current earnings potential is as good as it'll get or if we'll see better opportunities in the future. If you're retired or approaching retirement, timing matters because annuities often lock you into yields for years. So, when should you act? Below, fixed-income experts share their insights on whether now is the right time to buy an annuity and why (or if) waiting might serve you better. Start by seeing how high of an annuity rate you'd be eligible to lock in here. "The [annuity] rates and income percentages are some of the best that I've ever seen," says Mary Kay Sloan, a financial advisor with Prudential Advisors. Several factors are driving today's attractive rates, experts say: Elle Switzer, director of annuity product management at financial services company TruStage, notes that "for the first time in history, annuities reached $100 billion of sales [every quarter] in 2024 … suggesting that advisors and their clients see the appeal of the current market." However, Sloan warns that when interest rates decline, future annuity rates will likely follow. "Annuities will still make sense in a changed market [but] they might not be as generous as they are now," she says. Get started with an annuity while rates are still high here today. "There's a perfect storm working in favor of [annuity buyers]," Sloan says, with both equity markets and annuity rates elevated. This rare combination allows seniors to lock in high account values from their investments and secure enhanced lifetime guaranteed income. Demographics and economic realities add to the appeal. "People are living longer," Paz Rulli, vice president of annuities at Northwestern Mutual, notes. "Add in the uncertainty of fluctuating interest rates, market volatility and other macro uncertainties, and it's easy to see why now is an excellent time to consider an annuity — a product that mitigates risk." Switzer believes that buying now and investing long-term is generally prudent. "Get money off the sidelines and put it to work [rather than] staying invested in cash where you're likely losing money when you factor in inflation," she suggests. If you decide to buy, there's flexibility in how long to commit. For example, with a simple fixed annuity, you can lock in current yields for three to 10 years, depending on where you think rates might head. Despite today's favorable rates, annuities aren't suitable for everyone. "I wouldn't recommend an annuity if there's a chance [you'd] need liquidity," says Sloan. Switzer agrees and adds that your overall financial plan should drive the decision. If an annuity doesn't solve a need (e.g., protection or lifetime income), even compelling rates may not justify the commitment. Experts suggest holding off or passing in these scenarios: Annuity rates may be impressive right now, but that doesn't mean you should rush to buy one. Before deciding, Switzer recommends asking yourself one key question: "Will the annuity make me feel more confident about my financial situation?" If the answer is yes, that peace of mind may be worth more than trying to time the market perfectly. If you're considering an annuity, speak with a financial advisor who can present you options from several carriers. Remember that your choice isn't just about the rate — an insurance company's financial strength matters when you're making a long-term commitment. The right advisor will help you determine whether today's window of opportunity aligns with your retirement goals.
Yahoo
19-07-2025
- Business
- Yahoo
Should My 80-Year-Old Dad and 65-Year-Old Mom Turn Their $687,000 Nest Egg Into an Annuity? 'I Don't Think They Realize How Much They're Spending'
A Reddit user posed a question that hits home for a lot of families trying to help their aging parents navigate retirement: Does it make sense to buy an annuity? The post laid it all out. Their dad is 80. Mom is 65. They've got around $687,000 in investments and roughly $69,000 in annual income from Social Security and a pension. The user considered letting them follow the variable percentage withdrawal method—basically taking around 5.1% from the portfolio each year. That would give them about $85,000 in income annually, which should cover their estimated $75,000 in yearly expenses. Don't Miss: —with up to 120% bonus shares—before this Uber-style disruption hits the public markets Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — Still, they weren't fully convinced. "I don't trust that she truly understands how much they spend," they said about their mom, who believed their retirement spending would naturally drop. So the user started looking into annuities. Fixed, guaranteed income for life? Fewer surprises? It seemed appealing, especially for parents with such a large age gap. And they were fine with the idea that it might use up most of the money. "Yes, they won't leave anything to us when they pass, but it would be split six ways anyway," they wrote. That kind of honesty sparked plenty of responses. Some suggested the VPW method could still work. Others were quick to bring up annuity rates, which in mid-2025 have climbed significantly. Several said that fixed annuities were now paying over 5%, with joint lifetime annuities offering even more for older buyers. That's where the math starts to matter. The original post didn't specify exactly how much they'd consider converting, but let's say the parents decided to put $500,000 into a joint immediate annuity. Based on current market rates, that could generate around $2,350 to $2,500 per month, or roughly $28,000 to $30,000 per year. Add that to their existing $69,000 in Social Security and pension income, and their total annual income could land around $97,000 to $99,000. Trending: $100k+ in investable assets? – no cost, no obligation. But once they commit to an annuity, that money is locked in. It's not available for emergencies, unexpected medical costs, or any big one-time expenses. If they choose inflation protection, the monthly payouts drop at the start in exchange for gradual increases later. And unless they add specific riders, there's typically no money left over for heirs. For retirees focused on guaranteed income and less day-to-day decision-making, it might be worth the trade-off. But for others, the loss of flexibility—especially with a large chunk of savings—can feel like too big a sacrifice. In this case, the adult child wasn't chasing returns—they just wanted to make sure their parents didn't run out of money. An annuity could help with that. But it's not the only answer. The right move depends on spending habits, health, priorities, and how much they value predictability over control. Read Next: This AI-Powered Trading Platform Has 5,000+ Users, 27 Pending Patents, and a $43.97M Valuation — Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Should My 80-Year-Old Dad and 65-Year-Old Mom Turn Their $687,000 Nest Egg Into an Annuity? 'I Don't Think They Realize How Much They're Spending' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
19-07-2025
- Business
- Yahoo
Should My 80-Year-Old Dad and 65-Year-Old Mom Turn Their $687,000 Nest Egg Into an Annuity? 'I Don't Think They Realize How Much They're Spending'
A Reddit user posed a question that hits home for a lot of families trying to help their aging parents navigate retirement: Does it make sense to buy an annuity? The post laid it all out. Their dad is 80. Mom is 65. They've got around $687,000 in investments and roughly $69,000 in annual income from Social Security and a pension. The user considered letting them follow the variable percentage withdrawal method—basically taking around 5.1% from the portfolio each year. That would give them about $85,000 in income annually, which should cover their estimated $75,000 in yearly expenses. Don't Miss: —with up to 120% bonus shares—before this Uber-style disruption hits the public markets Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — Still, they weren't fully convinced. "I don't trust that she truly understands how much they spend," they said about their mom, who believed their retirement spending would naturally drop. So the user started looking into annuities. Fixed, guaranteed income for life? Fewer surprises? It seemed appealing, especially for parents with such a large age gap. And they were fine with the idea that it might use up most of the money. "Yes, they won't leave anything to us when they pass, but it would be split six ways anyway," they wrote. That kind of honesty sparked plenty of responses. Some suggested the VPW method could still work. Others were quick to bring up annuity rates, which in mid-2025 have climbed significantly. Several said that fixed annuities were now paying over 5%, with joint lifetime annuities offering even more for older buyers. That's where the math starts to matter. The original post didn't specify exactly how much they'd consider converting, but let's say the parents decided to put $500,000 into a joint immediate annuity. Based on current market rates, that could generate around $2,350 to $2,500 per month, or roughly $28,000 to $30,000 per year. Add that to their existing $69,000 in Social Security and pension income, and their total annual income could land around $97,000 to $99,000. Trending: $100k+ in investable assets? – no cost, no obligation. But once they commit to an annuity, that money is locked in. It's not available for emergencies, unexpected medical costs, or any big one-time expenses. If they choose inflation protection, the monthly payouts drop at the start in exchange for gradual increases later. And unless they add specific riders, there's typically no money left over for heirs. For retirees focused on guaranteed income and less day-to-day decision-making, it might be worth the trade-off. But for others, the loss of flexibility—especially with a large chunk of savings—can feel like too big a sacrifice. In this case, the adult child wasn't chasing returns—they just wanted to make sure their parents didn't run out of money. An annuity could help with that. But it's not the only answer. The right move depends on spending habits, health, priorities, and how much they value predictability over control. Read Next: This AI-Powered Trading Platform Has 5,000+ Users, 27 Pending Patents, and a $43.97M Valuation — Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Should My 80-Year-Old Dad and 65-Year-Old Mom Turn Their $687,000 Nest Egg Into an Annuity? 'I Don't Think They Realize How Much They're Spending' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
16-07-2025
- Business
- Yahoo
Update: Jackson to Report Second Quarter 2025 Financial Results on August 5
LANSING, Mich., July 16, 2025--(BUSINESS WIRE)--Jackson Financial Inc.1 (NYSE: JXN) (Jackson®) today announced that it will release second quarter 2025 financial results after market close Tuesday, August 5, 2025. Jackson's press release and supplemental financial materials will be available at Jackson will host a conference call and webcast to discuss the results at 11 a.m. ET Wednesday, August 6, 2025. The live webcast is open to the public and can be accessed at A replay will be available following the call. To register for the webcast, please click here. ABOUT JACKSON Jackson® (NYSE: JXN) is committed to helping clarify the complexity of retirement planning—for financial professionals and their clients. Through our range of annuity products, financial know-how, history of award-winning service* and streamlined experiences, we strive to reduce the confusion that complicates retirement planning. We take a balanced, long-term approach to responsibly serving all our stakeholders, including customers, shareholders, distribution partners, employees, regulators and community partners. We believe by providing clarity for all today, we can help drive better outcomes for tomorrow. For more information, visit *SQM (Service Quality Measurement Group) Call Center Awards Program for 2004 and 2006-2024. (Criteria used for Call Center World Class FCR Certification is 80% or higher of customers getting their contact resolved on the first call to the call center (FCR) for 3 consecutive months or more.) Jackson® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York). WEBSITE INFORMATION Visit to view information regarding Jackson Financial Inc. We routinely use our investor relations website as a primary channel for disclosing key information to our investors. We may use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations. Accordingly, investors should monitor our investor relations website, in addition to following our press releases, filings with the SEC, public conference calls, presentations, and webcasts. We and certain of our senior executives may also use social media channels to communicate with our investors and the public about our Company and other matters, and those communications could be deemed to be material information. The information contained on, or that may be accessed through, our website, or our executives' social media channels, is not incorporated by reference into and is not part of this press release. 1Jackson Financial Inc. is a U.S. holding company and the direct parent of Jackson Holdings LLC (JHLLC). The wholly-owned direct and indirect subsidiaries of JHLLC include Jackson National Life Insurance Company, Brooke Life Insurance Company, PPM America, Inc. and Jackson National Asset Management, LLC. View source version on Contacts Media Contact:Patrick Investor Relations Contact:Andrew Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
