Insured Retirement Institute (IRI) recently surveyed retirees between the ages of 50-66 and found 53% who own annuities are extremely or very confident their retirement income will be enough and will stay secure throughout their retirements. Interestingly of those who do not own annuities only 31% are confident about their retirement income.
Posted on September 4, 2012 by IALC
And not only are these consumers more confident, they are also satisfied with their annuity purchases. A recent LIMRA study found that 83% of fixed indexed annuity buyers reported being satisfied with their annuities and five in six would recommend annuities to others.
So what’s driving people to buy fixed annuities, in particular? Certainly the 2008 crash taught consumers that their foundations are not as sturdy as they once thought. So in order to regain a sense of stability they are looking for sources that provide some minimum guaranteed income. In fact, when asked about the intended uses for indexed annuities in another recent LIMRA survey, respondents’ top three responses involved retirement planning, including supplementing Social Security or pension income, accumulating assets for retirement, and receiving guaranteed lifetime income.
Note the annuities being discussed are fixed annuities which guarantee principal, interest and income. A variable annuity fluctuates with the equities in which it is invested and as a result provides no guarantees. A variable annuity should not be confused with a fixed annuity.