The FIDx Five: A Mixed Bag for Annuity Sales
Retirement, Annuity, & Fintech Insights
In this week's "The FIDx Five," we focus on the top news items that stood out to us since our last edition.
A Mixed Bag for Annuity Sales
While indexed and multiyear guaranteed annuities saw notable gains last quarter, other annuity sales slumped. In fact, variable annuity sales fell more than 37.8% compared with the same period as last year.
Source: Insurance Newsnet, "Indexed products headline strong 3Q annuity sales, Wink reports, 11/23/22
Retirement May Soon Cost This Much
A recent analysis of how much future retirees will need to live comfortably found that younger Millennials will need $3.6 million in savings. However, older Millennials, those approaching 40, will only need $2.8 to retire comfortably.
Source: Seeking Alpha, "Why Millennials Should Aim For $4 Million For Retirement," 11/26/22
The Cost-of-Living Crisis
Inflation is playing havoc with those preparing for and those currently in retirement. Many pre-retirees say they’re pulling back on their savings, while nearly 25% of retirees say they’re spending more they can afford.
Source: 401(k) Specialist, "Protecting Retirement Portfolios in a Bear Market," 11/21/22
DC or Not DC?
Despite growing annuity sales, a recent study shows that the increase hasn’t hit retirement plan. According to the research, despite 48% of retirement plan advisers finding “at least some value” in an in-plan annuity, the demand and adoption of annuity products in DC plans isn’t significant.
Source: Planadviser, "Current Annuities Boom Still Likely Faint for DC-Plan Advisers," 11/17/22
The Future of Financial Services?
Is it a fad or will the metaverse be the next frontier to reach consumers? With virtual world spending expected to hit $5 trillion by 2030, now’s the time to get familiar with how finances will work in this digital environment.
Source: Forbes, "Banking in The Metaverse – The Next Frontier For Financial Services," 11/16/22
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