Pensions and Annuities

[darnardo]

pensions are just annuities that are partially funded by an employer correct?

Are pensions and annuities grouped together? Are they listed as life insurance?

I notice that some research lists annuities as life insurance and others list them seperately.

I read on one article "pension annuities" so...that's just a "pension" correct?

Damn this terminoligy is killing me

 

[VolAgent]

To be a market analyst for a life insurer, you certainly ask some of the most basic questions. Come clean, what is the real story?

 

[darnardo]

To be a market analyst for a life insurer, you certainly ask some of the most basic questions. Come clean, what is the real story?

The real story? You seem more interested in me than the contents of my queiry.

The real story is I am an associate market researcher for a major insurer. In the business world associate means new employee. I give a fresh perspective and present new ideas to the company as well as comment on the viability of ongoing projects. Hope that satisfies your curiosity.

Since my question is so basic you care to give an answer?

 

[Franz Kafka]

pensions are just annuities that are partially funded by an employer correct?

Are pensions and annuities grouped together? Are they listed as life insurance?

I notice that some research lists annuities as life insurance and others list them seperately.

I read on one article "pension annuities" so...that's just a "pension" correct?

Damn this terminoligy is killing me

Under a broad definition a pension plan can be any employer sponsored third party administered retirement plan.

Under a narrow definition it usually refers to a defined retirement income benefit plan (as opposed to a defined contribution plan) - i.e. retirement income benefit is defined and you as an employee know at any given time exactly how much income you'll receive upon retirement. Employer doesn't have to use an annuity but an annuity is by design an effective way to guarantee a retirement income stream. As an added benefit, it can also include death benefit and disability income (depending on what the employer wants to provide). So in short, there are no set rules as far as how a pension plan can be designed. There are various carriers that offer different pension packages. You might want to check them out as a reference.

 

[darnardo]

Thanks Franz...

In the US when we look at national annuity statistics does that include pensions or are they listed seperately?

In most Asian countries there are very little individual private pension plans because companies must pay nation pension anyway even if they offer private pensios to their employees; employees cannot opt out of the national pension scheme.

In the UK they group life insurance and annuities in one category and private pensions in another.