The number of investors who say that annuities are a critical part of a retirement strategy increased significantly this year over last, according to a new report.
Cogent Research, Cambridge, Mass., published this finding in a summary of results from a new survey, “The Evolution of the Annuity Industry.” Produced in partnership with the Insured Retirement Institute, Washington, D.C., the study examines the opinions and preferences of annuity producers and investors, explores factors driving annuity adoption and details what carriers can do to capitalize on the growing interest in annuity ownership.
The survey was administered to investors who are responsible for making household decisions and are at least 25 years old.
Nearly three-quarters of the annuity owners surveyed (73 percent) say they are more likely than not to agree that annuities are a critical part of a retirement strategy in 2012. This compares with a much smaller majority of annuity owners (55 percent) who viewed the products as a critical component last year.
Similarly, 17 percent of non-annuity owners say the products are critical to retirement this year, as compared to just 8 percent last year.
A solid majority (63 percent) of the investors surveyed “somewhat” or “strongly” agree that volatility in the financial markets makes them more likely than not to consider buying an annuity. A smaller majority of the respondents (53 percent) also say they would like to know more about the features and benefits of their annuity-based investments.