Abstract
This report will provide a perspective on annuity sales and distribution channels; the competitive marketplace;and demographics and financial behavior of deferred and immediate annuity owners. It will also address consumer attitudes about annuities and offer some insights about future initiatives within the industry.
The annuity market may well be on the threshold of experiencing significant growth. In the past, annuities have taken a back seat to mutual funds in that the mass market has not similarly embraced them. However, the current and future climate for retirement savings is changing, and that change is almost certain to shine a more favorable light on annuities as a retirement planning vehicle.
Key findings in the reports include:
- The annuity industry has an opportunity to find a broadened marketplace by replacing or complementing Social Security and employer pensions.
- Top consumer concerns about annuities are the lack of flexibility and not having the capability for leaving money to their heirs.
- Approximately 75% of all variable annuity sales included a Guaranteed Minimum Withdrawal Benefit feature.
The industry has traditionally faced a number of challenges in marketing annuity products, but providers are confronting these challenges by creating new, innovative products, increasing choice and flexibility, and giving financial advisors more reasons to recommend them. As retirement planning issues become more significant for the growing number of aging Americans, the annuity industry has an exciting opportunity to capitalize and fulfill their income needs.
In this report, Mintel clearly identifies the principal external factors driving or curtailing growth. Exclusive consumer research reveals the attitudes, needs and behavior of consumers, with analysis broken down both by demographic characteristics, and by segment.
Six years of specific sales data provide a factual and impartial presentation of the market as a whole. Mintel also evaluates the performance of individual sectors in the market, and provides information about the major companies and brands. Using the SPSS forecasting package, Mintel creates a five-year forecast of U.S. retail sales, revealing potential opportunities for growth and product development.
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