Annuities Part of Obama’s State of the Union Address
President Obama will be talking about annuities in today’s State of the Union Address, according to the National Underwriter‘s article “Obama To Highlight Annuities” by Trevor Thomas. Obama’s administration will be releasing proposals aimed at helping middle-class people who are financially stressed. Using annuities to help generate lifetime retirement income is a large part of those proposals. The administration believes that highlighting the benefits of annuities to help avoid outliving one’s savings or losing that savings through inflation or investment losses is important. As Obama prepares for his State of the Union address tonight, the White House released a fact sheet of items he will discuss, including these proposals.
The American Council of Life Insurers is excited to work with President Obama to help spread the use of annuities used in retirement. They are praising Obama’s initiative and recognition of the difficulty retirees have making their savings last over their lifetime. There were a number of other initiatives released from the White House as well. A cap on student loan payments, an expansion of child care funding for parents who work, and increasing the number of people who receive federal aid being caretakers are a few of the plans. In regards to retirement, the administration plans to require better clarity in the fees that 401k plan administrators charge and press them to provide impartial advice to workers. As transfers to 401k annuities become more popular, it is crucial that workers nearing retirement have the best advice for making their lifetime savings last.
