Ralph Stewart's variable annuity business nearly there

The Reserve Bank has issued an industry-wide solvency standard for variable annuities.

This is a consequence of the work Ralph Stewart kicked off over two years ago and means any licenced insurer in New Zealand who complies with the new standard to the satisfaction of the Reserve, could issue modern variable annuities in New Zealand.

Stewart is pleased with the standards produced by the Reserve Bank and that they will enable companies to provide products which allow New Zealanders to purchase guaranteed retirement income products that are flexible, tax-effective and offer minimum income levels based on returns from growth and income assets.”

“New Zealand is experiencing a significant change in the structure of its population. The number of people aged 65 and over has doubled since 1980 and may double again by 2036. The fastest growth will occur between 2011 and 2036, as the baby boomers move into the 65-plus age group.”