More than a third (35 percent) of retirees receive income from an annuity, a recent LIMRA study has documented. That percentage, however, could increase as fewer Americans retire with a pension.
Jafor Iqbal, associate managing director, LIMRA Retirement Research, noted in a release detailing the results of the study that the majority of current retirees rely primarily on pensions and Social Security to fund daily living expenses, with annuities accounting for only 4 percent of their income. “But in the coming years,” he said, “we expect to see fewer Americans retiring with pensions and more relying on their personal savings to fund their retirement. Annuities will provide a reliable way to convert that savings into a guaranteed income stream.”
The online survey was conducted in October of last year and polled qualified respondents age 55 to 79 who had been retired for at least one year and had household incomes starting at $35,000.