Annuity Owners Confident About RetirementBy Andrew Rickard | November 10 2014 07:02AM
According to a recent study by industry research organization LIMRA, nine out of ten annuity owners say they are confident about the sort of lifestyle they will lead during retirement.
LIMRA says that people in the mass-affluent (those with investable assets of $100,000 to $499,000) and affluent (assets of $500,000 to $999,000) demographics show particularly high confidence, and notes that these two groups account for 79% of the households surveyed. One third of the households in the former mass-affluent category own an annuity, while this percentage increases to 38% in the affluent category.
“These two groups have limited assets at their disposal that they will need to use in their retirement,” comments Jafor Iqbal, associate managing director at the LIMRA Secure Retirement Institute. “These consumers tell us that owning an annuity gives them confidence about their financial security in retirement.”
Annuities are also popular in households with more than $1 million in assets; 44% of annuity owners in this demographic say they are “very confident” of a secure retirement compared to 35% of non-annuity owners.