Deferred Annuities: What Goes Into the Buying Decision?

Industry Issues

There are many conflicting messages about the value of annuities. Individuals can develop mixed ideas and preferences regarding these products. They may be confused about annuities’ value, suitability to their needs, or fit in a retirement portfolio — and they may be swayed by negative media attention.

Key Takeaways

This report examines investor attitudes, relationships with advisors, and feelings about the deferred annuity purchase process. Read it to learn about:

• The U.S. retirement climate: Review distribution of investible assets by generation, shifting retail annuity sales, and the opportunity for annuities with guaranteed lifetime income
• Today’s deferred annuity clientele: Explore buyer and non-buyer profiles that include the factors driving the purchase decision, household investable assets and debt, and the market opportunity with non-buyers.
• Advisor ratings: See how annuity buyers and non-buyers rate and value advisors, including advisors’ effectiveness at explaining the deferred annuity value proposition, financial needs analyses, best interest recommendations, and the importance of the advisor relationship to the deferred annuity sale.