Annuity Facts

Demystifying the world of annuities — what they are and how they work — remains an ongoing challenge for our industry if the findings of the Employee Benefit Research Group’s 2007 Retirement Confidence Survey (RCS) are anything to go by. According to the RCS, just 11 percent of workers said they are very likely to purchase a financial product or select a retirement plan option that will pay them guaranteed income for life when they retire, while another 39 percent said they will be somewhat likely to do so. However, if the word “annuity† is included in the question the likelihood of purchase drops to 7 percent and  32 percent respectively. As the RCS notes, the likelihood of purchase appears to be lower when the word “annuity† is included in the question, as opposed to the phrase “income each month for the rest of your life† – which is exactly what an income annuity provides. Check out the I.I.I.’s annuities information and other annuity-related facts & stats.  Ã‚  


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  1. The appreciation among consumers of the benefits annuities offer- especially annuities designed for income-generation- will not reach critical mass until the delivery of value-based messages around these products is transformed. You may find what Sun Life Financial introduced only yesterday to be of interest. They have taken a bold step to provide needs-based education combined with web-delivery of engaging content. Visit

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