Are your clients fully prepared to provide for their golden years?
Have they figured out reliable ways to make their nest egg last for at least 30 years post retirement?
Maybe they are wondering whether annuities make a lucrative financial product to meet future needs.
Annuity investments are not only tax-efficient but also ensure that investors receive a steady source of income as long as they live, no matter what the market goes through. There are many other factors that explain why annuity sales are still going strong. Here are 3 major ones:
No. 1: Baby boomers are an ideal age to invest in annuities.
People typically purchase annuities in their mid-50s or early 60s and baby boomers are now in this prime age bracket. This group of aging Americans is growing significantly in number and will continue to increase in the coming decades. This will open up new avenues for insurance companies that sell annuities. Greying trends will see a significant rise from 42.5 million Americans to 64 million by 2025 and this risk-averse group of Americans will stick to annuities because they avoid risk and offer financial security. So, even if the market breaks record heights, baby boomers who are not willing to risk it will continue to make annuities popular as an investment option.