July 26, 2021
by Karen Hube
There are many ways in which 2021 feels like the complete opposite of 2020, and the annuities business is no different. After one of the most challenging years on record–during which annuity providers raised fees, scaled back benefits, and saw sales drop more than 9%–it’s as if a switch were flipped. Investors are pouring money into these insurance contracts as the fallout from the pandemic, the recession, and political turnover makes retirement-income planning more daunting than ever.
Consider the myriad looming threats, each of which alone could be the bane of any retirement plan: potential tax increase, inflation, an overstretched stock market, and bond yields so low they’re useless for income and no longer serve as ballast during a stock market tumble. It’s no wonder that investors in or nearing retirement are seeking alternative to the traditional stock-and-bond portfolio.