Annuity Producers, Listen Up

There are amendments proposed to the Employee Retirement Income Security Act of 1974. These would require 401(k) plan sponsors to disclose on one pension benefit statement per year how the value of retirement accounts translates into guaranteed monthly payments, instead of showing only lump sum values. While plan participants wouldn't be forced into annuities, the hope is that seeing their money in terms of regular payments would help build an awareness of the value of annuities – which, by definition, provide guaranteed monthly payments.

And other Obama-backed proposals could spell more great news for producers. On Jan. 25, he revealed several planned proposals – one of which was expanding tax credits already in place for retirement savings.

There are some who are skeptical about the administration's specific promotion of annuities, and what will come to pass for that. So far, the president has leaned heavily on the need to save for retirement, but has largely steered away from the "A" word. But an emphasis on retirement means an awareness among consumers of the need to look at things like 401(k)s, IRAs – and annuities.

And with less noise in the marketplace… well, that can only be good. Right?

Christina Pellett is the editor of the Agent's Sales Journal.