Last year saw record sales for annuity products as a whole, at $241.7 billion, with Fixed Indexed Annuities selling well in the first part of the year. And an industry lobbying group predicts the annuity market may expand in short order: low interest rates that hindered sales of fixed annuities will rise, and demand for guaranteed-income products will continue to grow as the vast number of Baby Boomers head into retirement, according to the Insured Retirement Institute. About 10,000 Boomers turn 65 every day, a pace that will continue until about 2033. The passage of the SECURE Act also bodes well for sales long term, IRI noted, citing the legislation’s fiduciary protections for plan sponsors. Favorable conditions for those products would give FIA sales a big boost, as would increased sales through broker-dealers, according to Cerulli Associates, who says FIA sales will soon outpace variable annuities.

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