There are not many reports these days that paint consumers confident about their retirement preparedness. In fact, most articles on this and other news sites claim just the opposite; retirees and pre-retirees don’t have enough money for a traditional retirement.
Annuity owners, on the other hand, seem to be pretty sure about their finances in their golden years. According to a recent report from the LIMRA Secure Retirement Institute, nine out of 10 annuity owners are confident about their retirement readiness. Most confident are the households labeled as mass-affluent, or those with investable assets of $100,000 to 499,000, and affluent, or those with investable assets of $500,000 to $999,000.
LIMRA reports that 33 percent of mass-affluent households own an annuity and 38 percent of affluent households own an annuity.
“Our findings challenge the adage that annuities are ‘sold not bought,’” said Iqbal. “We found that investors know about annuity features and go into the process with a positive attitude, which directly influences the purchase decision.”
The positive trend is also reflected among households with more than $1 million in assets, as 44 percent of annuity owners in that category say they are “very confident” of a secure retirement compared to 35 percent of non-annuity owners.
The survey was conducted among 2,000 consumers age 50 and older with at least $100,000 in investible assets.