Fixed Annuity News
The fixed annuity industry is constantly changing. From product evolution and distribution consolidation to pending regulation and legislation, NAFA works diligently to keep up with every aspect of the marketplace and provide you with its most pertinent news in a timely manner. Utilize the information below to read about recent media coverage in our Monday Media Reports, access monthly advocacy updates via The Call, visit our Press Room for the association’s most current news releases or to catch up on our Twitter feed.
Industry News
‘Silver Wave’ Isn’t the Only Factor Boosting Annuities
08 AUG – John Manganaro – Think Advisor
“The record “silver wave” of people turning 65 this year has created a significant tailwind for annuities, according to Principal’s Sri Reddy, but that’s not the only factor driving annuity sales figures higher.
Individual investors have shown record interest in annuities since the start of 2022, according to Reddy, who serves as a senior vice president for retirement and income solutions at Principal. The outlook for annuity sales remains vibrant thanks to increasingly widespread interest in guaranteed retirement income.”
A look behind annuity numbers as sales explode
13 AUG – Doug Bailey – Insurance Newsnet
“Sales of annuities, the once largely disparaged investment instrument, have been off the charts for the last several years. Consumers, mostly retirees or those close to retiring, have turned to annuities in record numbers, fueled by the seemingly reassuring financial features but also by the insurance companies that heavily market them and are eager for the fees and commissions they carry.”
Life and Annuity Illustrations Confuse Clients, Advisor Tells Regulators
13 AUG – Allison Bell – Think Advisor
“State insurance regulators should put bad years into the performance illustration charts that show how life insurance policies and annuities might work.
Richard Weber, the principal at The Ethical Edge, a life insurance advisory firm in Pleasant Hill, California, is making that case to the National Association of Insurance Commissioners this week.”
Have Insurance Lobbyists Derailed The DOL’s Fiduciary Rule Again?
13 AUG – Tracey Longo – Financial Advisor
“Are the insurance industry and its Washington, D.C., lobbyists winning the war against the Biden administration’s fiduciary rule at the expense of investors?
Consumer groups and advocates who want a broader fiduciary standard argue the rule is imperative to protect investors from conflicted, costly advice and “financial advisers who recommend investments just because they pay higher commissions,” according to a Washington Post article this past weekend.”
Survey: Nearly a fifth of recent annuity buyers start new relationships with financial professionals to make annuity purchase
14 AUG – Staff – Nationwide
“Sophisticated retirement savers have for years been tapping into annuities to protect their assets and generate retirement income. Now, as annuities gain in popularity, savers just discovering the product are turning to financial professionals for advice.
A recent Nationwide Annuity survey found that 18% of recent annuity buyers surveyed intentionally sought out or started a new financial professional relationship in order to purchase an annuity. For financial professionals, the fact that roughly a fifth of recent annuity buyers are actively seeking help for the first time reveals not only the importance of an advisor’s role in the process, but a significant sales opportunity in this growing market, according to Rona Guymon, Senior Vice President of Nationwide Annuity Distribution.”
Best annuities for retirement in 2024
15 AUG – Joanne Cleaver, Paul Curcio & David Tony – CNN
“A solid financial foundation is essential for a secure retirement — and a point of universal worry.
A study sponsored by F&G Annuities & Life, released in summer 2024, found that despite a robust stock market to that point in 2024, 68% of pre-retirees figure that they’ll retire later than they originally planned.”
Investors Race to Lock in Firm Annuity Guarantees
29 AUG – Allison Bell – Think Advisor
“Investors poured cash into traditional fixed-rate deferred annuities in the first half of the year.
Sales of multi-year guaranteed annuities and other traditional fixed-rate deferred annuities increased to $83.7 billion in the first half, up 16% from the total for the first half of 2023, according to new issuer survey data from LIMRA.
Overall sales of U.S. individual annuities increased even more — by 20% — but the surge in fixed-rate deferred annuity sales had an especially broad impact on life insurers.”
The 12 Best Books on Annuities
30 AUG – John Rampton – Entrepreneur
“Often cloaked in jargon and misconceptions, annuities are a complex financial instrument with fees, surrender charges, and other complexities. Therefore, if you’re considering adding annuities to your retirement portfolio, you should arm yourself with knowledge.”
Annuities gain traction with middle-market consumers
01 SEPT – Susan Rupe – Insurance News Net
“Middle-income Americans will have a more difficult time managing their longevity risk in retirement now that fewer of them have defined benefit plans. Making matters more complicated is that many of these middle-market investors may have saved thousands of dollars throughout their careers in their employer-sponsored defined contribution plans but may not know how they can be certain their money lasts throughout the retirement.”
Parties seek stay of deadline for fiduciary rule appeal decision
03 SEPT – John Hilton – Insurance News Net
“The Office of the Solicitor General has not decided whether to appeal a stay freezing the Department of Labor’s latest attempt to expand fiduciary duty.
Texas Judge Jeremy D. Kernodle issued the stay on July 25 in a lawsuit brought by the Federation of Americans for Consumer Choice.
Attorneys for both plaintiffs and defendants jointly asked Kernodle to extend the stay to the government’s “deadline to answer or otherwise respond.” The parties agreed to file a status report on Sept. 27, according to a status report filed Friday.”
Monday Media Report
The NAFA Media Report features a summary of the previous week’s fixed annuity media coverage. NAFA welcomes your contributions and suggested additions.
The Call
The Call features timely and seasonal regulatory and legislative updates to help NAFA members stay on top of issues impacting their businesses. Both federal and state editions are distributed to keep you informed.