Insurers pared back variable annuity benefits at an increased pace in May by raising fees, decreasing payout provisions and streamlining benefits on some products.
In conjunction with the pullback, designed to correct over-promising by many companies, variable annuities are being redesigned to appeal to a broader audience.
The changes mean purchasers of annuities will pay more for less. If there is any consolation, it may be that the guarantees are more likely to be truly sustainable by the insurer, and annuities could also become easier to understand...
WSJ: Insurers Pare Back Annuity Benefits In May