Positive economic news for fixed annuities

Within the fixed annuities marketplace, fixed indexed annuities have seen the most dramatic jump in total sales, setting new records in four of the last five quarters. According to Beacon Research, the most recent quarter saw a cool $12.9 billion in sales of fixed indexed annuities. Fixed indexed annuities let policyholders capitalize on bull markets by tying interest rates to an index; the possible return is usually capped, but is typically higher than one would see from a standard fixed annuity. Naturally, fixed indexed annuities still offer the protection and guarantees that conservative investors have come to expect from other fixed annuity products.

All retirement income vehicles have experienced moderate or strong growth in recent years, but fixed annuities clearly lead the field. Economic conditions have been especially conducive to the success of this stable and trustworthy retirement funding option. Fixed annuities offer a little of everything – great upside potential, protection from market downturns and guaranteed lifetime income. With several types from which to choose and a slate of add-ons, such as survivor benefits and income riders, the lure of fixed annuities is compelling.

Consumers are increasingly aware of the need for lifetime income sources; people are living longer than ever before, and the threat of running out of money is not one to take lightly. Fixed annuities provide exactly the kind of insurance necessary to avoid that threat. Today’s robust markets and reasonable interest rates are no doubt helping to fuel these fixed annuity sales increases.