Annuities in the Post-DOL World
June 1, 2016 by Steven Morelli
LIMRA’s recent Retirement Industry Conference, speculation abounded on how the fiduciary rule would restrict access to the very products that can help Americans best prepare for retirement: annuities.
Frustration mounted as session after session included survey and study data predicting the negative impact on annuity sales. From manufacturers to distributors to agents on the ground, all face a difficult adjustment period.
And it will get ugly before it gets better, said Joseph Montminy, assistant vice president of the LIMRA Secure Retirement Institute.
This year, variable annuity sales are expected to decline 15 to 20 percent, he said, but that will be offset by a similar increase in the sale of fixed annuities. But next year will be another story.
The majority of the fiduciary rule goes into effect in April.
