As of the second quarter, annuity sales as a whole have reached their highest level in three years. Meanwhile, fixed annuities have hit sales numbers not seen in five years, according to data released by the Insured Retirement Institute. This surge is a result of several factors, not the least of which is healthy interest rates when compared to other guaranteed, principal protected alternatives.
Right now, every kind of fixed annuity is seeing an increase in sales. Not surprisingly, baby boomers are the major force behind these trends. Today’s near retirees have been smart with their money and are now looking for equally smart ways to turn their accumulated funds into lifetime income security and a worry-free retirement.
The economic numbers tell a powerful story: Sales of all annuities for the second quarter totaled almost $60 billion, which was up 6.8 percent from the previous quarter and 9.9 percent over the same quarter in 2013. Fixed annuities accounted for $24.3 billion in sales, a year-over-year growth of 41.6 percent.