ANNUITY WIRES

Annuity sales soar to new heights

Americans certainly loved annuities in 2022 — to the tune of $310.6 billion, a 22% increase from 2021 results and 17% higher than the record set in 2008, according to preliminary results from LIMRA’s U.S. Individual Annuity Sales Survey.

In the fourth quarter of 2022, total annuity sales were $87.2 billion, a 39% increase from the fourth quarter of 2021. It marked the third consecutive quarter in which annuity sales set a new record.

Fixed annuities led the way, as investors craved safety amid economic calamity.

Total fixed-rate deferred annuity sales were $37.5 billion in the fourth quarter, 241% higher than fourth quarter 2021 sales. It was the best sales quarter for fixed-rate deferred annuities ever documented. In 2022, fixed-rate deferred annuities totaled $112.1 billion, more than double (111%) the sales in 2021

Fixed indexed annuity sales also had a record quarter and year. In the fourth quarter, FIA sales were $21.9 billion, a 32% increase from the prior year. For the year, FIA sales were $79.4 billion, up 25% from 2021 and 8% higher than the record set in 2019.

LINCOLN SURVEY: AMERICANS CONCERNED ABOUT FINANCES

Many Americans are feeling a financial pinch after a difficult 2022. One in three Americans say they are struggling to get by or are in trouble financially, according to Lincoln Financial Group’s Consumer Sentiment Tracker.

The study also found that people aren’t necessarily seeing any relief in sight, with 76% believing factors like inflation, market volatility and debt will worsen. Bu the news is not all bad, however.

Those who had specific financial goals last year were two to three times more likely to say various aspects of their personal finances improved. They were also three times more likely to say they did a great job on their overall financial wellness last year and twice as likely to be optimistic about their finances in 2023. So where should consumers start in creating and reaching their own financial goals?

“Lincoln’s research underscores the importance of taking a definitive approach,” said Ed Walters, senior vice president, Lincoln Financial Network,