Fixed Annuity News

The fixed annuity industry is constantly changing. From product evolution and distribution consolidation to pending regulation and legislation, NAFA works diligently to keep up with every aspect of the marketplace and provide you with its most pertinent news in a timely manner. Utilize the information below to read about recent media coverage in our Monday Media Reports, access monthly advocacy updates via The Call, visit our Press Room for the association’s most current news releases or to catch up on our Twitter feed.

Industry News

If it’s a rollover, it’s fiduciary
7 MAY – Emile Hallez – Investment News

“The Department of Labor issued the final version of its investment advice rule last week, a sweeping change that makes one-time IRA rollover recommendations a clear fiduciary act.

It has enormous implications for brokers – including insurance agents who sell annuities via rollovers – who before may not have had to comply with the Employee Retirement Income Security Act, or ERISA.”

Annuity.org Finds Retirees’ Top Financial Concerns Include Health Care, Inflation
8 MAY – Jennifer Schell & Stephen Kates – Annuity.org

“Annuity.org’s most recent study highlighted the biggest financial concerns of Americans who are nearing or in retirement. The survey asked respondents to choose their top three financial concerns in retirement. The most common response, selected by 56.20% of respondents, was health care expenses.”

Fee Savings From DOL Fiduciary Rule Could Top $55B: Morningstar
8 MAY – John Manganaro – Think Advisor

“The Labor Department released the much-anticipated final version of its new fiduciary regulations for investment advisors in April. As expected, publication of the Retirement Security Rule quickly sparked a wave of comments and analysis from a variety of advisory industry stakeholders.

Much of the commentary has so far centered on the potential business effects of the final regulations on wealth managers, brokers, insurance agents and other financial services professionals working with retirement assets, but a new report published by Morningstar researchers Spencer Look and Lia Mitchell asks a different question. Namely, what might be the long-term impact on the fees and expenses paid by the average investor?”

A look at fiduciary rule and rollovers
10 MAY – Quad-City Times – Insurance News Net

Have you noticed how much your 401(k) plan has grown over the years? There’s now nearly $11 trillion in these retirement plans — boosted by years of continuous investing in a bull market and by employer matching contributions.

And now as baby boomers retire, more than $1 trillion every year is “up for grabs” as 401(k) plan participants decide to roll over that money to continue to grow tax-deferred.

DOL’s new fiduciary rule: Already under fire from life insurance & annuity industry groups
13 MAY – Samuel E. Cohen & Ryan P. Friel – Benefits Pro

“The investment landscape has changed over time, and the Department of Labor (DOL) is intent on changing its regulatory scheme along with it. According to the IRS, in 2020 about 5.7 million Americans rolled a total of $618 billion from retirement plans such as 401(k)s into IRAs. That was approximately double the $300 billion rolled over a decade earlier. Two years later, Americans rolled over about $779 billion into IRAs.”

Annuities Drastically Can Shift Retirement Income
14 MAY – D. Korth – Nasdaq

“TIAA, a provider of lifetime financial solutions, has unveiled a new gauge aimed at showcasing the potential income augmentation for recent retirees who integrate an annuity strategy into their financial plans, in contrast to solely adhering to the 4% rule. The TIAA Annuity Paycheck Advantage gives retirees an idea of how their retirement package might differ with annuities rather than the strict 4% rule.”

Annuity Issuer CEO Names DOL Fiduciary Rule Winners and Losers
13 MAY – Allison Bell – Think Advisor

“The new U.S. Labor Department fiduciary standards for retirement rollover advice could help stronger independent marketing organizations crowd out competitors, according to the leader of a top annuity issuer.

Chris Blunt, the chief executive officer of F&G Annuities & Life, talked about the impact of the department’s new Retirement Security Rule regulation effort last week, during a conference call with securities analysts. The Labor Department itself suggested that IMOs could help agents and brokers compare a wide range of annuities, along with other investment options, and keep compensation differences from influencing their recommendations.”

How prohibited transaction exemptions will change under DOL’s fiduciary rule
14 MAY – Tobias Salinger – Financial Planning

“Labor’s new rule came six years after another industry lawsuit resulted in an appeals court decision that vacated the rule and four years after another attempt at codifying prohibited transaction exemptions encountered legal challenges that have left it in flux as well. The new regulation expands the fiduciary duty to retirement advice from financial advisors or other industry professionals to 401(k) savers on rollovers and certain insurance sales. Proponents argue the rule will remove conflicts of interest and close loopholes that hurt retirement savers.”

New annualized life insurance premium dips in Q1, LIMRA reports
14 MAY – Limra – Insurance News Net

“Total individual life insurance new annualized premium slipped 1% year over year to $3.76 billion in the first quarter, according to LIMRA’s preliminary U.S. Life Insurance Sales Survey.

The total number of policies sold also dropped 1% in the first quarter. The decline doesn’t mean a lack of positive news within the numbers, said John Carroll senior vice president, head of Life & Annuities, LIMRA and LOMA.”

Final Fiduciary Rule – Part 1: New Definition of Investment Advice Fiduciary
15 MAY – Warner Norcross + Judd – JD Supra

“The U.S. Department of Labor (DOL) released its final “investment advice rule” on April 23, 2024 — set to become effective in September — after several failed attempts, years of deliberations and multiple lawsuits. If not delayed or overturned by new litigation, the DOL may have finally succeeded in replacing its long-standing “five‑part test,” first adopted in 1975 regulations, for determining when a person is providing “fiduciary” investment advice to an investor in a retirement plan or IRA.”

BlackRock And The Surging Popularity Of Retirement Annuities
16 MAY – Carrie McCabe – Forbes

“A new challenge is emerging in the U.S. retirement landscape. While many people now understand the importance of saving for retirement, there is limited guidance on transitioning from saving during working years to spending in retirement years. According to a recent McKinsey retirement report, only 19% of pre-retirees are likely to be fully financially secure, highlighting the magnitude of this challenge.”

Monday Media Report

Monday Media Report

The NAFA Media Report features a summary of the previous week’s fixed annuity media coverage. NAFA welcomes your contributions and suggested additions.

Access the most current report »

The Call

The Call

The Call features timely and seasonal regulatory and legislative updates to help NAFA members stay on top of issues impacting their businesses. Both federal and state editions are distributed to keep you informed.

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