There is a transformation of sorts occurring in the annuity market. Some of the large sellers of annuities to baby boomers and retirees are introducing new annuity products that are simplified and/or that offer new features. Let’s look briefly at a couple of these new types of annuities. Read more
Baby boomers are understandably fearful of another market meltdown. They continue their search for investments that will provide retirement income security with preservation of capital. That’s hard to achieve in a single package. Read more
Annuities of all kinds are popular with baby boomers who have turned gun-shy about the stock market. Annuity products make a lot of money in fees and commissions for the insurance companies that sell them. This means that there are a lot of marketing and advertising resources devoted to attracting baby boomers who are eager to put their dwindling retirement funds into something perceived as safe. Read more
I read a report this week that sales of fixed annuities in 2008 were up 60% in 2008 over 2007. In the last quarter of 2008 alone, fixed annuity sales were $34.1 billion, up 90% from a year earlier, according to data from the Beacon Research Publications Inc.
Meanwhile, indexed annuities increased 12% to $7.2 billion, and immediate annuities sales were $2.4 billion, up 22% from 2007.
This tells me that baby boomers are increasingly turning away from the ups and downs of the stock market. Instead they are looking at ways to use their retirement funds to purchase a secure income for life. Read more