Annuities common among retirees 75 and older

Posted on: Tuesday, September 20, 2011

A new study was recently released that may provide agents with some context for what products they should be promoting as they pursue life insurance leads.

According to the LIMRA, 35 percent of older Americans receive money from an annuity in retirement.

Jafor Iqbal, associate managing director of LIMRA, said that while this may not seem like a lot now, the percentage is bound to grow.

"The majority of current retirees relies primarily on pensions and social security to meet their daily expenses, with annuities making up only 4 percent of their income," said Iqbal. "But in the coming years, we expect to see fewer Americans retiring with pensions and more relying on their personal savings to fund their retirement."

He added that annuities help retirees convert savings into a source of revenue.

The study also looked into what age groups are most likely to get income from an annuity among older Americans. Nineteen percent of retirees receive income from an annuity if they are under age 65, but that number jumps to 49 percent among retired men and women between 75 and 79.

These findings may help agents decide whether annuity sales are worth pursuing based on who they're interacting with.

Posted In: Insurance News, Life Insurance

Enjoy this post? Share it with others.
  • Share on Digg
  • Share on Facebook
  • Bookmark on Google
  • Share on LinkedIn
  • Share on Reddit
  • Share on Twitter