Americans Are Interested in Annuities

Seventy-one percent of Americans would consider buying an annuity to meet a variety of needs, including having predictable monthly income, being able to provide an inheritance, meeting chronic care expenses, and achieving asset accumulation. However, 53% are not familiar with annuities, and only 20% plan to use an annuity to convert their retirement savings into an income stream, according to a survey by the Phoenix Companies. “The majority of Americans don’t have a deep understanding of today’s annuities. They don’t necessarily understand the basic income protection traditionally offered on all annuities; and they are not aware of the range of benefits available on newer products, such as accumulation and chronic care features. At the same time, when these newer types of features are described, a lot of people say they would consider buying the product,” said Mark Fitzgerald, national sales manager for Saybrus Partners, Phoenix’s distribution subsidiary. Consumers would purchase an annuity to get these benefits:
• 49% having predictable monthly income in retirement.
• 41% being able leave money for a spouse or heirs.
• 36% having money for chronic healthcare expenses.
• 31% having asset accumulation opportunities.
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