Income Annuity Buyers Shift Toward Deferred Products: Cannex

What the Numbers Mean

Typical consumers buying immediate annuities in the second quarter were 69 and paying an average of $342,582 in premiums. Typical consumers buying deferred income annuities were 59 and paying $214,041.

The shift toward deferred income annuities and single-life annuities may be a sign of COVID-19 pandemic-related layoffs, low interest rates, annuity menu changes and other forms of economic pressure pushing involuntary retirees to do their best to convert 401(k) and IRA assets into adequate post-retirement income.

Survey Basics

Cannex put those figures in its Cannex Survey Experience reports for the U.S. income annuity market for the second quarter of 2021 An income annuity is a contract that converts one large premium payment, or "lump sum," into a regular stream of income payments.

Cannex creates many streams of data on products, prices and transactions in the financial services markets in Canada and the United States.

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