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Study: Annuities could become larger income stream for retirees

Posted On Wed, September 28, 2011

A recent study from LIMRA found that 35 percent of all retirees earns money from annuities, and this could increase in the near future.

Nearly 20 percent of consumers under 65 earn money from an annuities program, but for those between the ages of 75 and 79, the figure is close to 50 percent, the study noted. The higher someone's assets, the more likely they would use annuities as income. Nearly half of those who were worth between $250,000 and $499,000 had annuity payments.

"The majority of current retirees relies primarily on pensions and social security to meet their daily expenses, with annuities making up only four percent of their income," said Jafor Iqbal, associate managing director for LIMRA Retirement Research. “But in the coming years, we expect to see fewer Americans retiring with pensions and more relying on their personal savings to fund their retirement."

Consumers who plan to use annuity income as a significant part of their retirement setup may want to look at annuity insurance rates, as choosing the right plan could make a noticeable difference.

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