Retirement security has been an elusive goal for many Americans. The economic slowdown prompted by COVID-19 hasn’t made things any easier.
Fortunately, there is support for Americans on the horizon. And it’s emerging from states like Delaware.
This week, Delaware Insurance Commissioner Trinidad Navarro proposed a rule that would ensure that American savers retain access to, and information in plain English about, annuities. Annuities are the only financial product in the marketplace that can provide guaranteed income for life.
Guaranteed income from annuities is an especially valuable source of retirement security these days, given market volatility during the coronavirus pandemic. The U.S. Congress reaffirmed the importance of annuities last year when it passed the SECURE Act, which makes it easier for employers to include annuities in retirement plans.
With the SECURE Act, more Americans should be able to obtain the financial security that comes from guaranteed lifetime income. And with insightful measures like Delaware’s proposal, more Americans will be able trust the recommendations they receive from their financial professional. With all that’s happened in 2020, access to these opportunities for financial certainty is more important than ever for lower- and middle-income families.
Delaware is following the lead of Iowa, Arizona and Rhode Island, which already have similar measures on the books. These states mirrored their rules to those of the National Association of Insurance Commissioners (NAIC), which updated its model regulation on annuity transactions earlier this year.
These measures also align with the Securities and Exchange Commission’s Regulation Best Interest, which took effect in June. Thanks to these state and federal initiatives, all those working to save for retirement will continue to have access to and information about guaranteed lifetime income from annuities. And they can rest assured that the recommendations they receive from financial professionals will be in their best interest.
More states are expected to propose rules like Delaware. As additional states adopt the NAIC model, more consumers, regardless of where they live, will benefit from a harmonized standard of care.
And more Americans will be able to achieve their goal of retirement security.
Vince Ryan is Regional Vice President, State Relations at the American Council of Life Insurers (ACLI). He is responsible for state legislative and regulatory affairs in Delaware, New Jersey, Iowa, South Dakota and Wyoming. He joined the ACLI in 2019 from the Delaware Insurance Department.
