The United States’ annuity market has been drastically affected by the economic downturn. Consumers have been less inclined to purchase fixed annuities given their lower rates and insurers have backed away from guaranteed variable annuities given their associated risks. Fortunately, fixed indexed annuities have taken up the slack given that they have guarantees similar to straight fixed products while also having upside potential dependent upon an index of some kind similar to variable annuities.
In a new report, North American Annuities, 2012: Market Trends and Technology Considerations, predictions for the annuities market through 2014 were provided. These estimates bring the total annuity sales up to $368 billion by 2014, which equates to a compounded annual growth rate of 4%. The newer indexed annuity products were highlighted as playing a significant role in this overall growth.
For those seeking annuity products, please be sure to seek the advice of a licensed retirement planning specialist in order to ensure that you make the best possible choice for your particular needs.