U.S. income annuity buyers seem to be waiting longer for their income streams to start.
Cannex Final Exchanges Ltd., a financial product pricing information firm, has put data on income annuity benefits start dates in an analysis of the transactions processed through its own quote system.
(Related: Most Lifetime Income Product Owners Like the Products: Cannex)
Cannex included only quote requests submitted by advisors and annuity support desks that pay to use Cannex services.
About 67% of the quotes run in the second quarter were for income annuities with benefits streams starting in fewer than 13 months.
That was down from 74% in the second quarter of 2019, and down from 73% in the second quarter of 2018.
The percentage of queries involving annuities with benefits streams starting at least 13 months in the future increased to 33%, from 26% in the year-earlier quarter, and 27% in the second quarter of 2018.