Displaying items by tag: BHF

(New York)

They do not get a great deal of attention, but annuities are having a real moment this year. Total annuities sales jumped 4% in Q1 versus the prior year. That is a pretty nice job for a product many would not think of as “fresh”. Variable annuities drove the gains, with a 7.5% quarterly jump.

FINSUM: Annuities have several tailwinds right now. The giant mass of baby Boomers entering retirement is one, Generation X liking annuities more than older generations is another, as are increasingly accommodative regulatory policies for annuities, such as their inclusion in retirement plans.

(New York)

Something very interesting is happening in the annuities market: a new generation is taking the lead. While for many advisors, getting Baby Boomers into annuities as they near retirement has been the focus, a new generation—Gen X—has been turning to the product because of a lack of pensions. According to a new industry study “investors under 55 are considerably more interested in annuities than Baby Boomers; 58% embrace the product as an alternative to pensions”. According to Jean Statler, CEO of the Alliance for Lifetime Income, “The high level of interest in annuities and protection among younger investors is extraordinary … Unfortunately, there’s still a large gap between what investors say is important to them and what financial professionals think is important”.

FINSUM: This makes a lot of sense. The generations younger than Boomers have experienced more income insecurity and retirement uncertainty and are more focused on their ability to control their own retirement income.