December 24, 2012 (PLANSPONSOR.com) - Interest in annuities is growing as consumers demand guaranteed lifetime income in the face of challenging economic conditions, according to a report.
The Insured Retirement Institute’s “State of the Insured Retirement Industry” said 2012 marked the first year of any significant sales in the industry—an estimated $1 billion in sales for deferred income annuities (DIAs). And, in 2013, annuity assets are expected to reach an all-time high.
Variable annuities continue to be the dominant product sold today, but anticipation is that DIAs will be the fastest growing product in 2013, at least on a percentage basis.
Annuities are now the most unsolicited products requested by clients, and nearly three in four financial professionals had clients who requested to purchase an annuity over the past year, according to a survey of financial advisers.
The fear of outliving one’s assets is one of the top financial fears of many Americans, and insurance companies are the only legal entities that can insure retirement income for a person’s lifetime.