Annuity Sales Are Predicted to Grow In These States

By |2017-10-23T02:11:55+00:00April 3rd, 2017|Annuities|

Nearly 3 million people are likely to purchase fixed index annuities (FIA) in 2017.

Three states lead this annuity buying increase: Texas, Florida and California with an estimated 720,000 households likely to purchase an annuity.

California makes up 325,000 of those, a stunning 16.5% growth-rate over three years.

Those three states make up 26% of households of likely buyers.

The top 10 states with households likely to purchase an annuity:

  • California
  • Texas
  • Florida
  • New York
  • Pennsylvania
  • Illinois
  • Ohio
  • New Jersey
  • Michigan
  • North Carolina

These states account for nearly 55% of households likely-to-purchase an annuity.

The question to ask is why?  Why are so many people deciding to trust their important retirement income money to annuities?

The answer is as basic as can be, annuities offer no market downside, only increases.  Annuities provide safety and security.  Annuities can provide lifetime income regardless of how long you live and spouses can be included!  Annuities are guaranteed by the issuer of the contract and are highly regulated by each state department of insurance.

This data was extrapolated from MacroMonitor data which tracks financial transactions, assets and credit scores.

The predictive annuity purchasing data also correlates to households likely to make digital purchases. Making digital purchases is a sign of ‘tuned-in-ness.’ In other words, those who have greater access to information trend to purchasing annuities in higher numbers.

The data shows awareness of annuity products is lower than other financial products such as Banks CDs, stocks, bonds, mutual funds and real estate investment trusts.

The study didn’t conclude exactly why market awareness for annuities is lower than other products, but James Thompson from Annuity Marketing Data Partners believes it’s due to poor comprehensive marketing by the insurance industry who sells annuities.

Thompson said: “Annuities are conservative investments and insurance companies believe the products speak for themselves. They don’t believe in spending resources on expensive marketing and having to pass those costs onto consumers, right or wrong.”

Publishing annuity information online lowers product awareness costs and likely translates to keeping annuities an affordable financial product for many people.

“The industry could do better to raise offline awareness of annuities,” Thompson added. “But they simply don’t have excess funds that the flashier financial products have.”

But that doesn’t change the fact that more and more people are considering buying annuities as people lose faith in public markets and move to more conservative financial products with built in guarantees.

When considering how your important retirement dollars are invested, consider the advantages of an annuity.

 

Al Martinez has been helping people in Colorado, Wyoming and New Mexico lower their tax bills and secure their safe money retirement funds for over 30 years.

America’s Financial Solutions Group INC.

1106 Lochmount Dr.

Loveland, C) 80537

afsg@retirevillage.com

al@afsgmartinez.com

888 418-3358

About the Author:

Al Martinez
For more than two decades, Al Martinez has been an advisor and general agent in the financial services industry, helping clients to make sound financial decisions in the areas of insurance and retirement planning. Host of the Al Martinez Retirement And Income Radio Show. Web Site: afsg.retirevillage.com