A Method to the Annuity Awareness Madness
For many years, consumers and the media have thought of annuities as an expensive product that locks away money, only to pay you little or nothing in return as you age. This couldn’t be further from the truth! Throughout the past 30 years, annuity products, features and benefits have dramatically evolved. In addition to being the only financial product that promises to pay you income for life, annuities are now extremely beneficial for addressing other retirement challenges like long-term care, inflation and legacy planning.
According to a study by The Phoenix Companies, nearly three-quarters (71 percent) of Americans would consider using annuities to establish predictable income in retirement, as a vehicle to protect inheritances, or as way to protect money for health and chronic care expenses. Yet the survey also indicated that 53 percent are “not familiar with annuities.”
To help bridge the gap in annuity awareness and understanding, the Coalition for Annuity Awareness was formed. Today, the Coalition is pleased to bring you AnnuRetirement, home to a variety of resources and educational material for elected officials, industry professionals and consumers alike.
About the Coalition for Annuity Awareness
The Coalition for Annuity Awareness is comprised of industry associations who serve consumers by helping them understand annuity products. As today’s challenging economic environment continues to evolve, a growing number of individuals and families are turning to annuities to help provide security for their retirement. Specifically, many consumers are using annuities as a vital risk management tool to protect themselves against the possibility of outliving their financial resources. Annuities are unique among financial products in the marketplace because they can provide retirees with a guaranteed lifetime income stream.
Currently, there is approximately $430 billion of in-force premium serving roughly 4.2 million Americans. More than nine in 10 consumers believe guaranteed lifetime income is an appealing characteristic of annuities and 72 percent of retirees receiving income from an annuity were satisfied with their investment. In 2017, life insurance companies paid $82 billion in annuity benefit payments providing crucial retirement security to contract holders. In addition, more than 90 million Americans rely on annuities and other insurance products for financial and retirement security, and nearly 16 percent of Americans’ long-term savings is in life insurance and annuities.
 It’s All About Income: Inaugural Study on the American Retirement Experience, Insured Retirement Institute, 2016
 The Language of Retirement: Advisor and Consumer Attitudes Toward Income in Retirement, Insured Retirement Institute and Jackson, 2017
 Life Insurers and Your State, The American Council of Life Insurers (ACLI), 2018