| Retirement tax incentive bill introduced
Legislation that would provide tax incentives to encourage people to invest a portion of their retirement assets into individual annuities was introduced in the Senate today. The Retirement Security for Life Act of 2007, introduced by Sens. Kent Conrad, D-S.D., and Gordon Smith, R-Ore., Introduced would allow retirees to receive up to $20,000 annually tax-free from individual annuities. It would provide a 50% deduction on income up to $40,000 a year received from an annuity. For a typical American in the 25% tax bracket, that would provide an annual tax savings of up to $5,000, according to a release from the American Council of Life Insurers in Washington, which has called for passage of the bill. America is becoming more and more aware of the growing retirement income crisis facing the baby boom generation and the need for Americans to save for retirement, said ACLI president and chief executive Frank Keating in a press release.
Wolanski leads rear guard action for alternatively secured pensions
The pensions industry is almost certainly beating its head against the Treasury brick wall, but it is not giving up over alternatively secured pensions (ASPs), effectively killed off after the 2006 Budget with an 82% tax charge. Hyman Wolanski of Alliance Trust, one of the major Sipp providers, has written to Ed Balls, economic secretary to the Treasury making a last desperate plea for a more generous approach. Wolanski calls on the Treasury to reconsider the decision to introduce an effective 82% death duty on remaining ASP funds, fearing that this will have a most damaging impact on the simplified pension regime introduced less than a year ago. Wolanski also wants the government to keep the debate open around alternatives to annuities for retirement income and controlled heritability of pension funds, to help narrow the UK's long-term savings gap.
Americans not well-positioned for post-retirement years
A large percentage of American workers recognize the U.S. retirement system is undergoing major changes, but many are not adapting in ways that are likely to leave them well-positioned for a comfortable retirement, according to the 17th annual Retirement Confidence Survey (RCS), released on April 11. The survey is sponsored by the non-partisan Employee Benefit Research Institute (EBRI) and Mathew Greenwald & Associates, a survey research firm. Highlights include: The RCS finds pension-plan changes by employers have left nearly half of workers less confident about the benefits they will receive from a traditional pension plan, but that those experiencing a decline in retirement benefits often fail to react constructively. Among workers who have personally experienced reductions in the retirement benefits offered by their employer, nearly 2 in 5 indicate that they have done nothing in response to these reductions.
Reverse mortgages may hit the spot
Many of Hawaii's seniors are done paying off their home mortgages, but the home mortgage industry may not be done with them. The unparalleled rise in real estate values and the low-interest rate climate of the Hawaii's housing market combined with the state's aging population has led to a proliferation of senior-only mortgage loan products. Seniors, who the University of Hawaii forecasts will make up a quarter of Hawaii's population by 2030, are fast becoming one of the hottest demographics for residential loan officers. .
CryoLife chief's compensation tops $1 million
CryoLife Inc. awarded its Chairman, President and CEO Steven Anderson $1.7 million in total compensation in 2006, according to an April 2 proxy filing with the Securities and Exchange Commission. The Kennesaw, Ga.-based biomaterials and biosurgical device company (NYSE: CRY) said Anderson's total compensation includes a $600,000 salary, bonus of $54,006, $284,721 in stock awards, $75,351 in stock options, $299,780 in nonequity incentive plan compensation and a matching contribution of $4,100 to the CryoLife 401K plan. .
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