BMS wrote:
- quote -

Since the probability of death is fairly low for people in their 60's
and early 70's, it would make sense postponing the purchase of
annuities until one is in their 70's in order to receive a higher
premium. Another factor depressing annuity payments is the current low
interest rate, so it might pay postponing the purchase of annuities
until long-term interest rates get to 7%.

--
Ron

"BMS" <mcfarland[at]yahoo.com> wrote in message
news:IYidnc30lKk--JbfRVn-1g[at]comcast.com...
- quote -

I agree with Beliavsky, they are UNDERutilized.

The reason we're seeing more annuitization is that many financial planners
are finally learning stuff that old line life insurance agents knew 80 years
ago (as did Roman soldiers two millenia ago).

The relatively recent "good ol' days" of talking about inflation and taxes
doesn't cut it with sophisticated seasoned citizens anymore, and it's never
cut it with the better financial advisors (who are responsible for what few
annuitizations there actually are). The best have been creating "defined
benefits" from defined contribution savings for their clients for a long,
long time.

Brent D. Gardner, ChFC
Chartered Financial Consultant
http://www.brentdgardner.com/
http://www.gardnerfinancialgroup.com/
http://www.topgunproducers.com/
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Si vis pacem para bellum!

"Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
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nuclear subs & ships

The Chartered Life Underwriter (CLU) and Chartered Financial Consultant
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BMS wrote:
- quote -

I think annuities ought to be used more. Most fixed immediate annuities
pay a constant nomimal amount of money per year and thus guarantee a
lower real income over time, because of inflation. Inflation-indexed
annuities, or annuities that increase payments at a 2-3% annual rate,
make more sense to me, although the initial dollar payment would be
lower than for a non-indexed annuity. I wonder how widely available
inflation-indexed and "increasing" (what's the technical term?)
annuities are.

BMS wrote:
- quote -

More and more people are living longer

- quote -

Most Annuity Owners wind up either dying prior to Annuitization,
or surrendering the contract for it's cash value.


- quote -

You are discussing three seperate concepts here.
a) Principal protection is provided through Insurance, regardless
of what they actually call it. It is a form of Term Insurance, that
provides XXX amount at death prior to YYY date.
b) High water marks are only involved in Variable Annuities.
c) The P R I M A R Y purpose and GUARRANTEED promise
of any Life Insurance Company issued ANNUITY is to be
able to provide an INCOME FOR LIFE.

Cal Lester CLU

Recently I have been reading the number of annuity contracts that will
actually get annuitized will rise sharply.

Currently only about 3% of contracts get annuitized, most current retirees
have a defined benefit plan, most of the upcoming retirees won't have
anything like that to fall back on.

Given one of a retiree's main fear is running out of money, does anybody see
a significant rise in annuitization and in turn a rise in the number of
annuity contracts that will over features such as principal protection,
contract high water marks and simply the promise of not out living your
savings?