Growth In Annuities Will Be Driven By Investors' Search For Guaranteed Income
Assets in both variable and fixed annuities hit record highs in 2010 and increased 10% over 2009.
Eight in 10 advisors who sell annuities are having more client discussions about retirement income planning than they did five years ago, according to a new report by the Insured Retirement Institute and Cogent Research.
“Increased market volatility, shrinking retirement savings and the disappearance of pensions have investors taking a long hard look at the value proposition associated with annuities,” said Marie Rice, custom research practice director at Cogent Research, in the report.
One in three investors now cite guaranteed income as their primary reason for buying an annuity, according to the report, The Evolution of the Annuity Industry. Two in three advisors said they have received at least one client request for an annuity in the past year.