Insights | 09.02.20
Annuity Sales Slump During Pandemic
According to the Secure Retirement Institute (SRI), total annuity sales fell in the second quarter by 24 percent from the corresponding period a year ago, to just under $49 billion. Both of the two main types of annuities saw steep declines: Variable annuity sales dropped 20 percent after four consecutive quarters of growth, and fixed-annuity sales slumped 26 percent. “Traditionally, during periods of low interest rates, individuals are more likely to seek variable annuities,” says Teodor Panaitisor, an SRI senior research analyst. “However, in recent months we have seen fixed products … gain more traction than other annuity products. This is due to the high volatility and uncertainty we’ve seen in the equity market."
Read the full article on Financial Advisor.