Fixed annuity sales in the third quarter were buoyed by the strongest sales quarter ever for income annuities and steady indexed annuity sales, according to Beacon Research. And, based on data reported by Morningstar Inc. and Beacon, income annuity sales increased to nearly $2.4 billion in the third quarter, up 3.8 percent from about $2.3 billion in the second quarter and up 6.7 percent year-over-year from $2.2 billion.
The consumer demand for income annuities has grown steadily during the past two years as consumers seek to generate a guaranteed stream of retirement income, said Cathy Weatherford, IRI president and CEO. The renewed attention to income annuities stems in part from a report issued last year by the U.S. Government Accountability Office, concluding that annuity ownership offers predictable income that can reduce the uncertainty that comes along with managing investments and drawing down assets. I believe this quest for certainty is helping to keep industry-wide sales relatively steady, despite the current low interest rate environment.
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