Investor Interest In Annuities Soars, Claims Survey
Annuities are now the most requested financial products by consumers, as they glance for a stable investment decision to enable fund their retirement, in accordance to an advisor survey by Cerulli Associates.
Rated as the sixth requested investment decision products in 2012, investor desire for annuities improved 15 % very last year to set it at the major of the checklist, in accordance to Cerulli’s Annuities and Insurance policy 2012: Assessing Growth Capability, Flows and Item Developments, unveiled Tuesday.
Amid advisors queried, 60.8 % indicated that they have had a number of consumers this year make unsolicited requests for information about annuities. The next-most requests were for information on Roth IRAs. A year previously, annuities rated sixth on the checklist, in accordance to Cerulli.
“Annuity requests are way up,” reported Donnie Ethier, senior analyst at Boston-dependent Cerulli. “We have found a remarkable year-above-year boost in the variety of moments financial advisors acquire requests from their consumers for annuities.”
The sudden strong interest in annuities, reported Ethier, is currently being fueled by a rising variety of newborn boomers wanting for stable investments for their retirement. In accordance to marketplace estimates, 10,000 newborn boomers will flip 65 several years previous each individual day for the next 19 several years.
“Investors are wanting for assures,” Ethier reported. “The fact that [interest in annuities] has absent up in just a year from variety 6 to variety one particular speaks to that. People today are wanting for security they are wanting for guaranteed profits.”
Whilst annuity recognition is rising, an approximated one particular-third of U.S. households are nevertheless unaware of annuities, in accordance to Cerulli.
“The two the constructive and the negative consideration annuities have obtained in the media above the past four several years has led to an over-all rising recognition,” Ethier reported. “This provides a one of a kind opportunity for insurers and advisors.”