With thousands of baby boomers turning 65 every day, and the number of defined-benefit pension plans available to support them continuing to decline, the pool of prime prospects for annuities offering lifetime income options should theoretically be deepening.
Yet despite seemingly optimal growth conditions, individual annuity sales last year were actually 11% lower than their peak in 2008, according to estimates by the LIMRA Secure Retirement Institute.
This counterintuitive trend can be partially explained by the fact that some annuities carriers have scaled back in recent years to de-risk their portfolios, with persistently low interest rates making it problematic to generate the returns necessary to maintain profitability targets on certain products.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
