Most owners of nonvariable annuities like them, according to new survey results.
The National Association for Fixed Annuities hired Greenwald Research, an independent polling firm, to conduct the survey. The sample included 404 U.S. residents ages 50 and older who own a traditional fixed rate annuity or a nonvariable indexed annuity.
The percentage of participants who said they were glad or very glad they owned their contracts was 80% for traditional fixed annuities and 76% for nonvariable indexed annuities. The percentage who said they were sorry or very sorry was just 2% for fixed annuities and 3% for indexed annuities.
More than 85% of the annuity owners said their financial professionals had explained the products well or very well.
What it means: The U.S. Department of Labor annuity sales standards effort may give the impression that typical annuity owners hate their annuities. The NAFA survey results suggest that owner satisfaction levels could be high.
NAFA: NAFA is a Washington-based group for annuity issuers, distributors and other individuals and companies with an interest in non-variable annuities.
The survey: Greenwald conducted the survey in December 2023.
The participants all bought individual annuities with help from financial professionals. They either had or once had at least $100,000 in investable assets.
