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 all things NAFA via our NAFAwire, visit our Press Room for the association’s most current news releases or to catch up on our Twitter feed.

Industry News

In Uncertain Times, Do Annuities Make Sense?
1 June – Ben Mattlin – Financial Advisor

“With the backdrop of the Covid-19 pandemic, rising interest rates, high inflation and the looming war in Ukraine, 2021 annuity sales in the U.S. posted their highest numbers since the great recession of 2008. “There was significant pent-up demand for investment options that offered a balance of protection and growth,” says Todd Giesing, assistant vice president of SRI Annuity Research.”

5 reasons women should consider annuities for retirement
2 June – Lyle Boss – Insurance News Net

“If you’re a woman in or near retirement, let me ask you this: How do you plan to take what you’ve so diligently saved and turn it into a lifetime stream of dependable, predictable, tax-advantaged income?

If you’re like many of us, you probably don’t have a ready answer to this question. That’s because you’ve been busy doing “all the right things.” You’ve been working, saving, maximizing your 401(K), paying off debts, being a caregiver, running a household, etc. It’s likely you haven’t really had time to think about what to do when the time comes to stop working and live on what you’ve accumulated.”

Annuity Ownership Drives Retirement Savings Confidence, Athene Finds
6 June – Athene – Global Newswire

“While nearly half of American adults saving for retirement (49%) feel that they are on track to reach their retirement savings goals, annuity ownership can truly differentiate their outlook for the better, according to a recent study from Athene, a leading provider of retirement savings products. In fact, among those saving for retirement, 75% of annuity owners reported feeling on track toward the same goals, marking a 26% increase in confidence over the general population.”

Premier Industry Trade Organizations Increase Momentum Behind Annuity Awareness Month
7 June – NAFA – PR.Com

“Amid challenging economic circumstances, a pandemic recovery and growing consumer desire for solutions that can help deliver a more secure retirement future, NAFA, the National Association for Fixed Annuities, is leveraging relationships with fellow Coalition for Annuity Awareness members to elevate the profile of annuities in celebration of June as National Annuity Awareness Month.”

Annuity sales rise, buoyed by market fears and higher interest rates. What to know before you buy
9 June – Greg Iacurci – CNBC

“Annuities are on track for a banner year as consumers flee stock volatility and insurers offer more attractive rates.

Limra, an insurance industry group, forecasts annuity sales of $267 billion to $288 billion in 2022, eclipsing the record ($265 billion) set in 2008. Consumers pumped $255 billion into annuities last year — the third-highest annual total, according to Limra.”

Annuity Sales Rose 4% in Q1, Boosted By Fixed Annuity Products
9 June – Jacqueline Sergeant – Financial Advisor

“U.S. annuity sales had a modest sales increase in the first quarter, as both traditional variable annuities and registered index-linked annuities slumped after record sales last year, according to Limra.

The Limra U.S. Individual Annuity Sales Survey showed annuity sales increased 4% to $63.3 billion, driven by fixed-indexed annuity (FIA) and fixed-rate deferred annuity (FRD) sales growth.”

Annuity Industry Geared Up To Promote Products In June
9 June – Edward Hayes – Financial Advisor

“With the markets experiencing significant volatility over recent years and Americans growing ever more concerned about their retirement prospects, the National Association for Fixed Annuities (NAFA) is among several other organizations trying to raise awareness among investors and advisors about annuities during National Annuity Awareness Month this month.”

Wade Pfau On Learning Each Client’s ‘Retirement Style’
12 June – Karen Demasters – Financial Advisor

“Advisors can gain an advantage—and help clients more—if they can assess the client’s attitudes about retiring before making a financial plan, according to two retirement experts who participated in a recent webinar.

The two strategists said the job for an advisor is to figure out how the client feels about probability, or risk, versus safety, and optionality, or flexibility, versus commitment. The answer to those questions will tell the advisor what retirement approach will appeal to a client, they said.”

Millennials Hankering for Annuities: Survey
13 June – Alex Padalka – Financial Advisor IQ

“Millennials are more apt to buy insurance products such as annuities in the next five years in greater numbers than any period before, according to a report from a firm that sells such products.

Around 80% of millennials are “pursuing” products “that offer growth and protection,” according to results of a survey conducted earlier this year by Lincoln Financial Group.”

Five Annuity Myths Debunked
14 June – Ken Nuss – The Street

“Despite their diversity, annuities aren’t suitable for everyone. If you withdraw or receive earnings from an annuity before age 59½, you’ll be hit with a 10% IRS penalty along with regular income tax.”

Working With Your Clients To Solve The Annuity Puzzle
15 June – Eric Henderson – Financial Advisor

“As we mark National Annuity Awareness Month (NAAM) this June amid rising interest rates, increased market volatility and heightened interest in annuities, now is the time to talk to your clients about incorporating annuities into their financial plans. Below are some common investor misconceptions and ways you can address them with your clients to solve the annuity puzzle together.”

North Carolina Passes Annuity Best Interest Rule
15 June – Patrick Donachie – WealthManagement.com

“North Carolina adopted a new rule governing annuity sales and recommendations in the state based on the National Association of Insurance Commissioners’ (NAIC) model rule, becoming the 26th state to do so.”

Indexes must evolve with inflation, rising rates, says NAFA panel
17 June – John Hilton – Insurance News Net

“Many popular indexes supporting annuities and life insurance today might not work as well in a recessionary, high-inflation, and rising interest rate environment.

Those indexes underpin many big-selling products through a strong historical performance record. With the market on a strong 15-year growth run, most of the historical periods chosen for sales tools like illustrations show nothing but positive news.”

LIMRA Expects U.S. Individual Annuity Sales to Keep Growing
24 June – Allison Bell – Think Advisor

“The aging of the U.S. population should help keep U.S. individual annuity sales increasing at least through 2024, according to LIMRA.

The Windsor, Connecticut-based financial services research organization is predicting that sales will increase to at least $267 billion this year, up 4.7% from the 2021 total.”

Monday Media Report

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.

Access the most current report »

The Call

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.

Access the most current update »

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Huge thanks to our @NAFAUSA Kansas & Iowa Hill Walk participants for reinforcing the importance of National #AnnuityAwarenessMonth the last five years in their visits and to @JerryMoran & @ChuckGrassley for proving that our voices are being heard & improving #retirement for all!

Yesterday the @SenateFinance passed the EARN Act by a 28-0 vote! It's great to see bipartisan support for more commonsense #retirement #reform, like increasing the #RMD age & expanding contribution limits & amounts for QLACs, to help create #lifetimeincome & address longevity.

As the power of #taxdeferral, income #guarantees and other protection benefits are becoming better appreciated, are you prepared to leverage the 22 uses of #annuities in financial planning to help Main Street Americans meet their core #retirement needs? https://register.gotowebinar.com/register/6021387891149495819

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