Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

LIMRA Study Finds Annuities Provide Sense of Security


For one reason or another, annuities have been given a bad rap, most likely because of the complex nature of these financial tools. But regardless of whether you love them or hate them, according to a recent LIMRA study, retirees who own them feel more secure than those who do not.

The study, discussed in a recent article from 401(k) Specialist magazine, found that 75% of retirees who own an annuity believe they will be able to live the lifestyle they want in retirement, compared to just 64% of retirees who don’t. Similarly, almost 70% of retirees who own an annuity claimed to be confident that their savings and investments will not run out if they live to age 90. Only 57% of retirees who don’t own an annuity agreed.

The report, The Differences They Make: An Advisor, an Annuity or a Formal Plan in a Retiree’s Life, also found that more than half of retirees who own an annuity actually own more than one. Nearly ⅓ own two annuities and 20% own three or more.

“Institute research shows financial advisors play an important role to ensure people have done the needed planning to ensure they have a secure retirement,” LIMRA wrote in the report. “Twice as many retirees who work with an advisor own an annuity, compared with retiree who don’t work with an advisor.”

LIMRA also stated that its research consistently shows that having a formal retirement plan leads to better outcomes. In fact, retirees and pre-retirees with a formal plan are three times as likely to feel very prepared for retirement. They’re also twice as likely to have estimated how long their assets will last and have a specific plan for generating income from their savings. A formal retirement plan typically includes determining income, assets and expenses, as well as identifying and mitigating any potential risks.

An annuity can be an important tool, providing a lifetime guaranteed income stream for their clients,” the institute concluded. They also found that annuity ownership rate is almost 70% higher among households that have completed a formal plan than households without.

Written by Rachel Summit

Follow Rachel, aka Finance Mama, on Twitter and Google+

For more information about the product mentioned in this article contact us here:

Newest Blog Posts

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help. For the fastest response, please select 'Phone' as your Contact Preference.

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of AFYI Holdings Group, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. AFYI Holdings Group, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).