Skip to content

Creating Guaranteed Lifetime Income: Income Annuity Buyer Study (2016)

Judy Zaiken, CLU, ChFC; Joseph E. Montminy, ASA, MAAA; Teodor (Teddy) Panaitisor 12/13/2016

LIMRA Retirement Research

Download Your Reports

No part of any report may be reproduced or translated without written permission from LIMRA. Please contact Customer Service for further information.

Industry Issues

Fueled by demographic, regulatory, technological, and economic trends, the demand for guaranteed lifetime income is growing. In particular, there is an increasing market appeal for Single Premium Immediate Annuities (SPIA) and its more recent manifestation, the Deferred Income Annuity (DIA). While headwinds persist, market dynamics are converging to bolster the category.

Key Findings

  • Income Annuities are increasingly purchased with tax-qualified money. While DIA funding is predominantly tax-qualified retirement savings (74%), SPIAs are still more often funded with non-tax-qualified savings (52%).
  • SPIAs are more often sold to women.  Almost 62% of single life SPIAs and 57% of single life DIAs are sold to women. 
  • Joint-life sales are most commonly owned by a male, at 74% for SPIA and 73 % for DIA, yet most commonly cover mixed-gender spouses.
  • At 72 years, the average SPIA purchase age has dropped slightly to meet head on with the age of leading edge Boomers.
  • At just 59 years, the average DIA purchase age has brought the income annuity market opportunity down to include much younger age consumers.

Related Resources

Related Research

Through the Advisor Lens: Alternative Investments in Defined Contribution Plan Executive Summary (partial infographic)

The inclusion of “alternative” asset classes in DC plan menus may soon be facilitated by an Executive Order and subsequent DOL action. Find out how DC Gatekeepers – advisors – feel about this potential; explore their opinions about how alts fit into DC strategies and where they feel this development is going.

U.S. Individual Annuity Market

Access your one-stop shop for U.S. annuity sales data — benchmark sales and analysis for a range of annuity products, reported by distribution channels and market types. New Q1 2025 Product Reports.

DC Advisor Views: PEPs Update

Since 2021, a new construct has been available to employers who want to sponsor a workplace retirement savings program but may be reluctant to take on the role of an active plan sponsor: the Pooled Employer Plan (PEP).This research explores advisor assessment – and actions – relative to PEP plans and opportunities.

The Growing Influence of Health Risks on Retirement Security

NEW research by Chris Heye, Fellow at the LIMRA Retirement Income Institute reveals that identifying and managing health-related financial risks is central to retirement planning. Audience: Financial Professionals, External

For more information, please contact tpanaitisor@limra.com.

Did you accomplish the goal of your visit to our site?

Yes No