Life Insurance Quotes

More retirees turn to annuities, study shows

09/19/11

According to a LIMRA study cited by Insurance and Financial Adviser, more than one out of every three of American retirees receive payments from an annuity, an indication that many citizens are moving toward a reliance on personal savings rather than social security or a pension.

The study noted that the liklihood of receiving payment from an annuity increased with age, as only 19 percent of retirees under the age of 65 receive payment from an annuity, but 49 percent of retirees between the ages of 75 and 79 receive annuities payments.

"All of our research has revealed that consumers are attracted to guarantees with their financial products – especially when the economy is performing poorly," said Jafor Iqbal, associate managing director of LIMRA Retirement Research. "This holds true for retirees as well. Our study found that 40 percent of retirees receiving income from annuities say their annuity income is guaranteed for life."

According to the Insurance Information Institute, the sale of individual fixed rate annuities declined in the United States by 27 percent in 2010, while the sale of variable rate annuities increased by 10 percent.

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