How is the rise in life expectancy impacting financial needs in retirement? Which annuities nabbed the lion’s share of product sales last year? And why are the wealthy—particularly the most affluent among them—buying annuities, given their other substantial assets?
Answers to these questions, among many others, are forthcoming in the Insured Retirement Institute’s “IRI Fact Book 2014.” The 198-page report, an all-encompassing guide to information, trends and data in the retirement income space, explores the state of the industry, annuity product innovations, and solutions for generating immediate and future income needs.
Fact 1: Americans are living longer amid rising healthcare costs.
Fact 2: Deferred and variable annuities accounted for most annuity sales in 2013
Fact 3: Sales of fixed immediate income annuities have more than doubled since 2003 and were up 20 percent in 2013 alone
Fact 4: In 2013, 72 percent of variable annuity sales were in products offering a guaranteed minimum withdrawal benefit (GMWB) or guaranteed minimum income benefit (GMIB)
Fact 5: More than one in three (36 percent) investors have an annuity within their investment portfolio.
Fact 6: Familiarity with annuities and their benefits increases with wealth, as does the belief that annuities can diversity and protect assets.
Fact 7: Nearly half of households (43 percent) cite guaranteed monthly benefits as the primary reason for purchasing an annuity.