Variable Annuities for Retirement Savers Go Back to Basics
After years of making variable annuities more complex and expensive, some insurers are offering products that have fewer bells and whistles, are easier to understand and have lower fees.
Variable annuities were originally introduced decades ago as a tax-deferred way to save for retirement in mutual-fund-like accounts. But as more people gained access to 401(k)s, IRAs and other tax-deferred investments, insurers started to focus on providing income guarantees rather than just tax deferral--which became particularly popular after the 2007-09 market downturn. These income guarantees became expensive and complicated, however, and a lot of people didn't know exactly what they were paying for.
A few companies have gone back to basics and
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