U.S. Senator Elizabeth Warren, a consumer advocate and prominent critic of Wall Street, has taken aim at a new target: the biggest sellers of annuities and the cruises, international travel, iPads, cash and stock options she says they're using to entice brokers to sell their annuity products. She is particularly worried about near retirees and baby boomers who are especially vulnerable to poor investment decisions.
Warren is planning to send letters today to the 15 largest annuity providers which include Allianz SE's U.S. life division, Security Benefit Life Insurance, Jackson Life, AIG, New York Life Insurance, Prudential Financial, Aegon NV's Transamerica, Axa, Metlife, Nationwide Mutual Insurance and Pacific Life Insurance. She wants to know whether perks they provide encourage brokers to put personal interests ahead of the retirement goals of clients.
