August 8, 2012 (PLANSPONSOR.com) – A LIMRA study of annuity buyers found that the top reason consumers gave for buying their annuity is to supplement their Social Security or pension income.
The second most popular reason is to accumulate assets for retirement; this is especially true for individuals younger than age 60. Receiving guaranteed lifetime income is also a concern, especially for buyers ages 60 and older.
Annuity buyers’ single most important financial objective is to have enough money to last their and/or their spouse’s lifetime. Only about one in four annuity buyers are very confident that their assets will last throughout their retirement. “Knowing they will have sufficient assets and income in retirement continues to concern consumers,” said Joseph Montminy, LIMRA assistant vice president, annuity research. “But the recent economic crisis and continued market volatility has made guaranteed income more valuable to consumers.”