June is National Annuity Awareness Month
While most people think of June as the end of the traditional school year, this month also marks the start of National Annuity Awareness Month! Throughout June, Annuity Alliance will post content to help our consumer visitors learn more about the benefits of annuities, types of annuity products, and how annuities can become a part of your retirement strategy.
The Coalition for Annuity Awareness declared June as National Annuity Awareness Month starting in 2015 with 20 states support their efforts by signing proclamations to support June as Annuity Awareness Month. These powerful products aren’t what they used to be; rather, annuities are becoming a staple in retirement plans for young and old alike.
According to recent industry numbers, annuity sales picked up by 9% during the first quarter 2021 with most consumers choosing to purchase fixed-rate deferred and registered index-linked annuities. Some of the causes are tied to low interest rates, market fluctuation, and the COVID-19 pandemic environment’s impact on the economy.
Annuities can play a critical role in helping individuals successfully prepare for their golden years. In fact, according to a recent report from the LIMRA Secure Retirement Institute, 73% of annuity owners are confident about their retirement readiness compared to just 64% of those who don’t own an annuity.
In 2020, consumers decided to place their retirements in the following annuity products.
- Fixed-annuity sales: $120.2 billion
- Fixed Indexed annuity Sales: $55.7 billion
- Fixed-rate deferred annuity sales: $51.7 billion
- Variable annuity sales: $98.9 billion
- Deferred income annuity (DIA) sales: $1.7 billion
- Immediate income annuity sales: $6.3 billion
In the first quarter 2021, total annuity sales were $60.9 billion, a 9% increase from first quarter 2020, according to preliminary results from the Secure Retirement Institute U.S. Individual Annuity Sales Survey.
Are you looking to purchase an annuity to add guaranteed lifetime income to your retirement strategy? Contact Annuity Alliance today and we will connect you with a licensed professional to discuss your potential options.