Mr. Mackey s letter to the editor is reprinted below. We, of course, support Mark Mackey s comments. The article contains inaccurate statements concerning variable annuities and creates a misleading impression regarding their use in qualified plans. The article cites class action lawyers who criticize the use of variable annuities in qualified plans because investors are charged higher fees for annuities in part because of the purported tax advantages, which already exist in qualified plans. We strongly disagree with this statement.
Variable annuities enjoy tax deferral as a matter of law.
Investors do not pay for tax deferral in a variable annuity. The article acknowledges these benefits, but then cites annuity critics who dismiss them. Again, we strongly disagree. Lifetime Income Annuitization helps retirees retire on their terms by guaranteeing them payments, which will continue for the rest of their life, no matter how long that is. With people living longer and longer, this is an important benefit that only annuities provide.