Annuity Shift

Fixed indexed annuities are becoming more mainstream in retirement planning as consumers begin to realize and desire the benefits of income for life. Commissioner Jones' comments mark an important shift in how regulators view retirement savings strategies and the value annuities can have for consumers looking for financial piece of mind into their golden years.

Since financial needs vary across age, economic stability and retirement goals, Jones made sure to emphasize that annuities may not always be the best option. Jones recognized, like my own group, the Indexed Annuity Leadership Council, that an annuity isn't for everybody. The best first step is to be aware of the options and consider all of the financial vehicles that may play a role in creating a balanced portfolio.

By 2030, one in five Californians will be 65 or older. With the entire U.S. population aging, it's more important than ever for individuals to be informed and understand how much they will need to save. 

Annuities have been misunderstood in the past, but failing to encourage consumers who are saving for retirement to consider annuities denies them the opportunity to consider a product that could be an important component in their retirement portfolio. Not giving consumers the options they need to create the proper combination of risk and conservative choices could cripple the retirement dreams of many Americans.

— Read The Glory Days Are Over: 4 Tips for Investing in a Low-Return World on ThinkAdvisor.