The National Association for Fixed Annuities (NAFA) recently conducted a survey of fixed annuity owners, revealing important insights into the reasons why individuals choose to invest in fixed rate and fixed indexed annuities. The survey found that 92% of fixed rate annuity owners and 100% of fixed indexed annuity owners value the fact that their annuity cannot lose value for as long as they own the product. Safety was cited as the top reason for purchase by both groups of annuity owners.
The study also highlighted the importance of thorough product education for consumers, with nearly nine in 10 fixed annuity owners stating that their annuity professional explained their product well and had their best interests in mind when recommending the product. More than three-quarters of fixed annuity owners reported being satisfied with their purchase.
Despite misconceptions about fixed annuities from various stakeholders, including the Department of Labor and The White House, everyday consumers are turning to these products to secure their financial future. Fixed annuities can help individuals protect against longevity, sequence of returns risk, and market risk while diversifying their portfolios.
Annuities are becoming a popular solution for retirement income concerns, as they offer a predictable stream of lifetime income that individuals cannot outlive. With access to pensions decreasing and Social Security facing uncertainty, fixed annuities provide a way to bridge potential income gaps in retirement.
The survey revealed that a majority of fixed annuities are valued at less than $200,000 and make up approximately one-third of owners’ investable assets. Financial professionals are encouraged to continue educating Americans on the benefits of incorporating fixed annuities into their retirement savings plans.
The survey was conducted by Greenwald Research on behalf of NAFA, gathering insights from 404 Americans age 50 or older who work with financial professionals, have at least $100,000 in investable assets, and own a fixed rate or fixed indexed annuity. Greenwald Research is a leading custom research firm serving the health and wealth industries.
NAFA, the premier trade association dedicated to fixed annuities, aims to promote awareness and understanding of these products. Founded in 1998, NAFA represents all aspects of the fixed annuity marketplace, including independent agents, advisors, and brokers. For more information, visit http://www.nafa.com.
In conclusion, fixed annuities offer a valuable solution for individuals seeking to secure their financial future in retirement. With a focus on safety, education, and income predictability, fixed annuities can play a crucial role in helping Americans achieve a more secure retirement savings plan.
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