The FIDx Five: The Fate of In-Plan Annuities

Retirement, Annuity, & Fintech Insights 

As regulatory landscapes shift and nearly half of retirement plan sponsors mull over in-plan annuities, next year presents a critical juncture. Discover more about that and four other stories in this edition of “The FIDX Five.”

In-Plan Annuities Eye Major Growth
With 49% of private-sector retirement plan sponsors considering in-plan annuities and regulatory changes reducing fiduciary barriers, the next 12 months are crucial for the adoption of these guaranteed income solutions in retirement planning.

Source: 401(k) Specialist, “Next 12 Months Could be Tipping Point for In-Plan Annuities,” 11/28/23 

A Reality Check in Annuity Illustrations
Consumer advocates call for stricter regulations to combat unrealistic annuity performance illustrations, urging state regulators to reveal the true potential of annuity products through standard scenario tables.

Source: Think Advisor, “Consumer Reps Ask States to Change Annuities' Faces,” 11/30/23

Rising Rates Revive Annuities
As annuities gain popularity amidst increasing interest rates, the industry faces a pivotal moment: the potential for higher returns is shadowed by risks of aggressive strategies and systemic instabilities, prompting a critical examination by investors and regulators.

Source: Financial Advisor, “Annuities Are Back In Fashion, But Are They Safe?,” 11/28/23 

RILAs Drive Record-Breaking Quarter
LIMRA reports a robust growth in annuity sales with RILAs leading the charge, setting new records with a 19% increase year-over-year, and with projections indicating a continuing upward trend into 2024 despite fluctuating interest rates.

Source: Insurance NewsNet, “RILAs fuel strong third-quarter annuity sales, LIMRA reports,” 11/30/23

Firm Secures Full Ownership of Global Atlantic 
KKR consolidates its hold on the insurance sector by acquiring the remaining shares of Global Atlantic, aiming to leverage the insurer's growth trajectory.

Source: Life Annuity Specialist, “KKR’s $2.7B buyout of Global Atlantic to Speed Growth, ‘Unlock’ Value, Execs Say,” 12/1/23

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