The results of a new survey contain details agents may want to discuss with their insurance customers concerning the benefits of purchasing an annuity.
According to a poll conducted by the Institute for Social Research at the University of Michigan, approximately 40 percent of older Americans put off their retirement in 2008 and 2009, the time period in which most economists say the recession occurred.
Brooke Helppie McFall, an economist at ISR, noted how average household income took a significant hit in these years.
"The typical household lost about 5 percent of its total wealth between the summers of 2008 and 2009," said McFall. "The average person would need to work between 3.7 and 5 years longer than they planned in order to make up the money they lost."
As a result of this, McFall indicated that the people surveyed planned on working an average of 1.6 years more than they had initially planned, which he said isn't nearly long enough to make up for what they'd lost.
That's where annuities come in, as they serve as a fixed sum of money that policyholders can obtain each year for the rest of their life. This can help individuals offset their lost savings, enabling them to retire as they had planned.