Americans are increasingly concerned about their finances – and with good reason. Every day seems to bring more grim news:
But not all the consumer finance headlines are bad. In fact, just in time for Annuity Awareness Month, comes this excellent news: life insurers are making annuities even more appealing for consumers.
Indeed, the recent rise in interest rates has enabled insurers to make certain annuities more affordable, while others have increased the credited interest rate paid to annuity holders.
Annuities are the only financial product in the marketplace that guarantees a person won’t outlive their savings. They also provide a hedge against stock market volatility. With traditional workplace pensions becoming extremely rare, more and more workers are responsible for making their savings last throughout retirement. Consequently, Americans are increasingly looking to annuities to create their own steady and safe income stream for after they leave the workplace.
Annuity sales jumped 16% last year and another 4% in the first quarter of 2022. And the momentum is growing as LIMRA is forecasting record annuity sales this year.
Federal lawmakers reaffirmed the importance of annuities in 2019 with the SECURE Act, which made it easier for employers to offer an annuity option in their retirement plans. Now Congress is considering new comprehensive retirement legislation that also supports annuities.
Annuity Awareness Month officially ends when the clock strikes midnight on June 30 and the calendar flips to July. But the importance and value of annuities for Americans seeking retirement security has no expiration date. That’s why we encourage Congress to pass retirement legislation and send it to the president.
To learn more about annuities, join ACLI’s Twitter chat on Wednesday, June 29 from 1-2 p.m. ET. #SecureRetirement2022.
Jim Szostek is Vice President & Deputy, Retirement Security at the American Council of Life Insurers (ACLI). He helps guide ACLI policy on legislation and regulations affecting the U.S. retirement system. Prior to joining ACLI in 2008, he held positions at CIGNA and The Hartford.
