Deferred and variable annuities can be valuable for retirees facing long-term care costs, particularly women and those with higher levels of education and income, according to a National Bureau of Economic Research paper. "Given current regulatory and tax rules as well as empirical evidence on health transition rates and medical costs in old age, better-educated retirees would do well to annuitize part of their 401(k) assets as they can benefit from longevity protection and earn the survival credit," the paper notes.

Vanguard's "How America Retires" report highlights a notable increase in retirement income solutions within defined-contribution plans. As more retirees choose to keep their assets in-plan, plan sponsors are expanding advice offerings and exploring tools that provide clearer income guidance. The report also discusses the emergence of hybrid annuity target-date funds, which combine the traditional asset allocation glide path with an income-funding feature that prefunds an annuity purchase near retirement.

As 2025 ends, clients may want to consider a number of tax-management strategies, including contributing to spousal IRAs, optimizing charitable giving and maximizing retirement contributions, writes Susie McLane of Summit Place. "Donating appreciated securities, rather than cash, can allow clients to avoid capital gains taxes while receiving a deduction for their charitable gift," McLane notes.

Only 10% of Americans wait until age 70 to claim benefits, despite the significant financial advantages of delaying. Mary Kay Sloan emphasizes the importance of tailoring strategies to individual needs, considering factors such as cash flow, health and marital status, while Michael Finke and David Blanchett highlight the long-term benefits of delayed claiming, including increased guaranteed income and greater security.

The IRS has announced increased retirement contribution limits for 2026, allowing workers to contribute up to $24,500 to 401(k) plans and $7,500 to IRAs. Those aged 50 and older can contribute up to $32,500 to a 401(k) and $8,600 to an IRA. However, high earners will be required to direct catch-up contributions to Roth 401(k) accounts in 2026.

The Securities and Exchange Commission is reopening after a 42-day federal government shutdown ended, but financial advisors and firms might face delays as the agency manages a backlog of filings and examinations. The shutdown also halted new advisor registrations, with compliance experts noting that it is unclear whether the statutory 45-day clock for new registrants began upon filing or when the agency reopened.

Effective succession planning requires a comprehensive approach that incorporates "business strategy, financial planning insight, goal setting, marketing and administrative resources," writes Aaron Neidorf of IFC National Marketing. Establishing specific deadlines, understanding the current value of the business and communicating clearly about the transition are crucial steps, Neidorf writes.

As the holiday season approaches, wealth managers face the challenge of finding the perfect client gifts while adhering to Financial Industry Regulatory Authority rules. Merritt Carew of Amplius Wealth and Alex Landry of Cyndeo Wealth Partners recommend personalized, thoughtful gifts that reflect clients' interests, emphasizing that meaningful gestures do not have to be expensive.

The Insured Retirement Institute's State of the Industry report is a members-only publication that includes annuity market data, operations and technology, and regulatory and legislative trends in 2024, as well as notable themes emerging in 2025. Access it here.