This year marks the 20th anniversary of fixed indexed annuities (FIAs), initially introduced to consumers as a key product that would help to provide a reliable and secure source of income through their retirement years. FIA sales have grown exponentially since then. In the past two decades, millions of consumers have purchased FIAs as part of their retirement portfolio, Jack Marrion, president of research and consulting firm Advantage Compendium Ltd., said in a NAFA Annuity Outlook article. What’s more, FIA sales are continuing to grow. In just the first quarter of this year, FIA sales totaled $11.6 billion, according to the LIMRA LOMA Secure Retirement Institute.
The Indexed Annuity Leadership Council (IALC) predicts demand for FIAs will increase in the future. “Customers who may have never heard of a Fixed Indexed Annuity in the past will progressively consider them at younger ages and companies will continue to develop new products that reach wider audiences and satisfy the widespread desire for a secure and comfortable retirement,” the IALC said.
But what else does the future hold for FIAs? The IALC forecasts the following changes, based on past and current trends: