Most annuity buyers are satisfied with their annuity purchases and would recommend annuities to their families and friends, according to a new study from LIMRA, an insurance industry group.
Seventy-five percent of variable annuity buyers, 83% of indexed annuity buyers and 86% of traditional fixed annuity buyers reported being satisfied with their annuities. Five in six would recommend annuities to others.
Annuity holders cited supplementing Social Security or pension income as the top reason for buying annuities. Other reasons included accumulating assets for retirement and receiving guaranteed lifetime income.
The study found that the financial strength of the insurer matters to most annuity buyers. Seventy-one percent of variable annuity buyers and 68% of indexed and traditional fixed annuity buyers said the financial strength of the insurance company was very important when purchasing an annuity.
The study, which was conducted in the third quarter of 2011, surveyed 1,200 consumers, age 40 or over, who purchased a retail deferred annuity within the past three years.