Future of Annuities
It is expected that the aging of the Baby boomer generation in the US will increase the demand for this type of instrument and how it might be optimized for the annuitant; this growing market will drive improvements necessitating more research and development of instruments plus increase insight into the mechanics (including dynamics in more than the sense of the dynamical system) involved on the part of the buying public. An example of increased scrutiny and discussion is that related to privatization of part of the U.S. Social Security Trust Fund.
In late 2010, discussions, related to cutting Federal taxes, raised anew the following concern: how much would an annuity cost a retiree if he or she had to replace their Social Security income? Assuming that the average benefit from Social Security is $14,000 per year, the replacement cost would be about $250,000 for the individual. The figures are based upon the individual receiving an inflation-adjusted stream that would pay for life and be insured.
Read more about this topic: Life Annuity
Famous quotes containing the word future:
“The danger of the past was that men became slaves. The danger of the future is that men may become robots. True enough, robots do not rebel. But given man’s nature, robots cannot live and remain sane, they become “Golems,” they will destroy their world and themselves because they cannot stand any longer the boredom of a meaningless life.”
—Erich Fromm (1900–1980)