What You Need to Know
- The typical immediate annuity buyer wanted $39,526 in annual income.
- The average premium was $354,158.
- The average annual income sought was up from $35,823 in the third quarter of 2020.
Cannex Financial Exchanges Ltd. says the clients shopping for immediate annuities in the third quarter spent more and wanted more income than the clients shopping for immediate annuities a year earlier.
Consumers use immediate annuities to generate streams of income that start within a year after the contracts were purchased.
The average consumer who sought quotes for an immediate annuity in the third quarter was 68.6 years old, wanted to generate $39,526 in annual income, and was on track to spend about $354,158 on premiums, according to Cannex.
In the third quarter of 2020, the typical immediate annuity shopper was 68.3 years old, wanted $35,823 in annual income, and was on track to spend $317,310 on premiums.
Cannex is a Toronto-based company that provides pricing information for annuity and bank products in North America. Cannex bases its quarterly income annuity market reports on the quote requests that retail annuity advisors and retail annuity support desks feed through paid Cannex information services.