Bohemia, NY (PRWEB) March 15, 2013
On March 12, developer of Savings2Income, Jerry Golden, comments on an article from Which? News outlining new regulations imposed on British insurers selling annuities.
According to the Which? News article “Change to Get a Better Retirement Income Boosted,” posted March 3rd, companies that are members of the Association of British Insurers (ABI) must provide more detailed information about buying annuities. The new rule took effect on March 1st, forcing insurers to educate retirees on purchasing annuities.
Jerry Golden, developer of retirement planning company Savings2Income says shopping for an annuity is like shopping for a house. “You want to make sure you get the best deal that will secure spendable income throughout your retirement,” he says. “When you buy a house, you don’t go for the first one you see. You look around and explore other neighborhoods and other mortgage rates. You have to do the same for annuities. There are different rates at different companies. Take a close look at the amount of commission advisors make off your purchase as well.”
Which? News reports that the new ABI rules promote consumer decisions and education, including:
- Insurance providers cannot sell retirees annuities automatically and are banned from sending forms promoting direct purchase.
- Firms are required to educate retirees on special types of annuities, including ‘enhanced annuities,’ and what might benefit their lifestyle.
- Information about protecting annuities from inflation must also be discussed with retirees.
Golden says this type of regulation would benefit retirees in the U.S. “Americans are extremely confused about annuities, so they generally don’t want to make a commitment to invest,” he says. “The team at Savings2Income recently released a series discussing the common misconceptions associated with annuities; however, a more rigorous regulatory system could be even better..”
An innovative retirement planning method called Savings2Income (S2I) created by Jerry Golden seeks to provide a clear path to retirement security for those saving for retirement, soon to retire, and recently retired. S2I incorporates Rollover IRA savings, personal retirement savings held outside an IRA or 401(k) plan and Social Security into an integrated solution.