The Top Reasons People Choose Annuities
A study of annuity owners finds the top two reasons they buy annuities are to supplement Social Security and or pension income and to receive guaranteed income payments for life.
LIMRA leaders say consumers are worried about running out of money in retirement, and as more Americans face retirement without pensions, an annuity can provide peace of mind.
The LIMRA study found the primary source of income for retirees is expected to change. Today, Social Security and pensions make up the primary sources of income for 70 percent of retirees. But, less than half of pre-retirees and under a third of younger workers say they will rely on Social Security and pensions as their primary source of income.