New research from the Insured Retirement Institute (IRI) and Cogent Research shows that annuities are gaining greater acceptance among investors. In a recent poll, 73% of annuity owners and 17% of non-owners said that annuities are an important part of a retirement plan. That’s represents an increase from 55% and 8%, respectively, from 2011.
The survey also polled financial advisors, with 71% saying they have had a client seek an annuity purchase in the past 12 months. Among annuity producers, 84% said they are having more discussions with clients about retirement income planning today than five years earlier. Almost three-fourths said market volatility made it easier for them to sell annuities.
For the second consecutive year, guaranteed income topped the list of reasons why annuity buyers made their purchase, with 35% putting it number one, virtually unchanged from the previous year. Next up was an advisor recommendation, followed by tax-deferral features, principal protection and a guard against inflation. Tax deferral dipped a bit in importance, slipping from 23% in 2011 to 19% in 2012, while inflation protection grew in importance, rising from 1% of respondents last year to 6% in 2012.