Retirees who own annuities may be better off in many ways than retirees with no annuities.
Analysts at LIMRA, an insurance industry market research consortium, have published data supporting that possibility in a new look at results from a survey conducted in late 2016.
(Related: Michael Doughty to Lead LIMRA’s Parent)
All of the survey results included were from 2,025 U.S. retirees ages 55 to 79 who had been retired for at least one year; had not worked for pay within the past year; and had at least $35,000 in household income.
A copy of the analysis is available here.
The analysts found that:
1. Annuity owners had more live-human support.
About 56% reported having a financial advisor, compared with just 28% of the non-annuity owners.
2. Annuity owners were more likely to have a formal retirement plan.
About 59% of the annuity owners had a formal plan, compared 35% of the non-owners.
3. Annuity owners expressed more confidence about their ability to maintain their current standard of living.
About 73% of the annuity owners said they were confident about their ability to live the lifestyle they want. Only 64% of the non-owners said they could maintain the lifestyle they want.
The results do not necessarily prove that owning annuities made the annuity owners better off.
The LIMRA analysts have not tried to adjust for income, for example. It’s possible that higher-income retirees are more likely to own annuities, and are better off in many other ways, than lower-income retirees.
But the new analysis does raise the possibility that owning annuities could increase annuity owners’ sense of financial security.
— Read Middle-Class Consumers Dread Serious Illness on ThinkAdvisor.