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January 19, 2021 at 11:32 AM
Cannex Financial Exchanges Ltd. received 27% fewer requests for quotes for U.S. income annuities in 2020 than in 2019.
The company provided 669,574 quotes for single-premium immediate annuity (SPIA) contracts and deferred income annuity (DIA) annuity contracts last year, down from 913,870 SPIA and DIA quotes in the previous year.
(Related: Income Annuity Buyers May Be Getting More Patient)
The average age of an annuitant, or individual expected to receive a contract’s income, held steady at 68.4 years.
The average premium in a SPIA quote request increased 8.9%, to $317,911, and the average monthly income requested inched up to $36,426, from $36,391.
The average income level associated with the SPIA quotes fell to 11.5% of the premium amounts in the 2020 quote requests, down from 12.5% of the premium amounts in the 2019 SPIA quote requests.
Cannex put those figures in its Cannex Survey Experience reports for the U.S. income annuity market for 2019 and 2020.
Income Annuity Data Basics
An income annuity is a contract that converts one large premium payment, or “lump sum,” into a regular stream of income payments.
A SPIA contract begins providing income within about a year after the contract is purchased.
