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Investor Economics

Insurance Advisory Service December 2012

Payout Annuities Await Their Moment in the Sun

The re-tooling of the guaranteed withdrawal benefit (GWB) shelf and the growing demand for simplicity in retirement income solutions may help shine a favourable light on payout annuities.

The provision of guaranteed income in retirement came to the fore of retirement planning with the introduction of GWB products in late 2006. Since then, the product category has grown to over $30 billion and the discussion of income strategies has become a staple with advisors. However, shifting regulatory and economic environments have prompted most life insurers to pull back features and, in some instances, suspend or leave the GWB space altogether.

This issue of the Insurance Advisory Service leverages our growing payout annuity database—the result of our newly re-designed survey of payout annuity providers—to size the market, define the playing field in terms of sponsors and distributors, and assess the challenges and opportunities facing the product segment.

 

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  • Tags: annuities, insurance, Insurance distribution channels, MGAs, segregated funds

  • Date Posted: January 23, 2013