Editorial Board
Annuities Should Be Boring, Not a Systemic Threat
Life insurers increasingly look like banks — but without the backstops and safeguards. Regulators should step in.
Keep it simple.
Photo: Getty ImagesEvery year, millions of Americans send their hard-earned money to life insurance companies, in return for a promise that it will grow and provide them with regular income in old age. These fixed annuities make up a large part of the nation’s retirement savings — at last count, more than $3 trillion.
They could also become a nexus of the next financial crisis, if regulators don’t act to mitigate mounting risks.