Annuity sales in 2012 declined overall compared with 2011, but were stable compared to 2010 levels, according to a report from The Insured Retirement Institute (IRI), based on data from Morningstar Inc. and Beacon Research. Income annuities, however, continued to post record sales in Q4 2012, as consumers look to generate guaranteed lifetime incomes.
“The continued growth in income annuity sales reflects two trends that we are seeing in the market—demand and innovation,” said Cathy Weatherford, IRI President and CEO. “To ensure that they have guaranteed retirement income for the remainder of their lives, many consumers are turning to income annuities as a type of longevity insurance. To meet this demand, more and more companies continue to innovate and develop new products. We are seeing this now with the growth of deferred income annuity (DIA) product offerings. We anticipate that this growth will lead DIAs to be the fastest growing product on a percentage basis in 2013 and will contribute to strong income annuity sales during the next year.”
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