Annuities have increased in popularity for retirement planning given their reliable income streams and ability to deliver protection and floors that combat market volatility.
Recent data from A.M. Best reveals that individual annuities accounted for $344 billion of life insurers' $1.5 trillion in direct written premiums in 2023.
Additionally, total annuity sales reaching a record-high of $385.4 billion, marking a 23% year-over-year increase.
BlackRock forecasts a growing significance of annuities in retirement planning, anticipating an increase in clients with retirement accounts featuring annuitization options.
Advisors and agents will play a crucial role in helping clients navigate in-plan annuitization options alongside conventional investments and alternatives.
Making Annuities Work
While annuities offer vital financial tools for retirees, the effective management of these investments relies heavily on annuity administrators who operate behind the scenes.
These professionals oversee the intricacies of annuity contracts, managing tasks such as payment processing, record maintenance, and customer inquiries.
Moreover, they serve as intermediaries between insurance companies and annuitants, ensuring compliance with regulations and contractual terms, thus safeguarding the interests of all parties involved.
Annuities, designed to preserve, grow, and protect retirement assets while guaranteeing a base level of income, offer a strategic approach to wealth accumulation.
Amidst market fluctuations and inherent complexities, the expertise of annuity administrators becomes indispensable, guiding firms to advocate and advise on this investment planning solution effectively.
Annuities have become an integral part of many investors' financial plans.
However, navigating the complexities of an ever-changing regulatory environment, licensing and contracting challenges and maintaining a firm grasp on new business applications requires knowledge and experience.
Arleen Romano is the annuity administrator at 
