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:
“It is marvelous indeed to watch on television the rings of Saturn close; and to speculate on what we may yet find at galaxy’s edge. But in the process, we have lost the human element; not to mention the high hope of those quaint days when flight would create “one world.” Instead of one world, we have “star wars,” and a future in which dumb dented human toys will drift mindlessly about the cosmos long after our small planet’s dead.”
—Gore Vidal (b. 1925)