The variable annuity industry should help workers prepare for retirement by changing the way it promotes variable annuities.[@@]
Charles Haldeman Jr. delivered that message here at the annual meeting of the National Association for Variable Annuities, Reston, Va.
Haldeman, president of Putnam Investments, Boston, was one of several NAVA meeting speakers who talked about the need to do the right thing and put investors first.
“Too often,” Haldeman said, “we have put the interest of selling funds ahead of the obligation to make sure the investor is better for the long term.”
One way for the industry to improve is to stop advertising high rates of return in a short time range and in narrow asset classes, Haldeman said.
Instead, Haldeman said, the VA industry must adopt strategies that will encourage investors who are saving for retirement to buy and hold diverse portfolios of investments.