MILWAUKEE--(BUSINESS WIRE)-- A study released by LIMRA, a leading insurance industry ‘think tank’ and international learning center, indicates very high satisfaction levels among buyers of fixed annuities. The survey results reveal that 83 percent of indexed annuity buyers and 86 percent of traditional fixed annuity buyers are satisfied with their deferred annuity purchase. Fixed annuities are financial products provided through insurance companies.
Last fall, LIMRA surveyed 1,200 consumers, age 40 or over, who purchased a retail deferred annuity within the past three years. Survey results found the top reason consumers gave for buying their annuity is to supplement their Social Security or pension income.
Receiving guaranteed lifetime income is also a concern, especially for buyers aged 60 and older. Annuity buyers' single most important financial objective is to have enough money to last their and/or their spouse's lifetime. This is not surprising given that only about one in four annuity buyers are very confident that their assets will last throughout their retirement.
Along with these positive viewpoints by fixed annuity owners, the sales of fixed annuities continue to climb. A study by AnnuitySpecs.com indicates 2nd Quarter 2012 sales of indexed annuities were up more than 6% when compared with the same period one year ago. Guaranteed Lifetime Withdrawal Benefits on many fixed indexed annuities provide an especially attractive benefit to consumers looking for guaranteed retirement savings options.
“The National Association for Fixed Annuities (NAFA) is very pleased to see the LIMRA study results which continue to confirm the very high satisfaction levels among consumers who own a fixed annuity," stated NAFA President & CEO Kim O’Brien. "In today's challenging economy the guarantees and features of fixed annuities are becoming increasingly popular among consumers to save for retirement and provide income throughout retirement."
It is important for consumers to discern if a fixed annuity is suitable for their financial needs. Free educational resources about fixed annuities can be located online at www.FixedAnnuityFacts.org.
NAFA, the National Association for Fixed Annuities, is a national trade association exclusively dedicated to promoting the awareness and understanding of fixed annuities – including income, declared rate, market value adjusted and indexed. NAFA is the only association whose sole purpose is advocating for the fixed annuity product and educating regulators, legislators, consumers, members of the media, industry personnel, and distributors about fixed annuities and their benefits to retirees and those planning retirement. Learn more at www.nafa.com.
LIMRA Study - August 2012
AnnuitySpecs.com - August 22, 2012
W. Scott Hinds, Education & Training Director, 414-332-9306, ext.2
Source: National Association for Fixed Annuities (NAFA)