Investors are pouring billions of dollars into annuities, as worries about stagflation and a U.S. recession whipsaw the stock and bond markets.
These complex financial tools, a mix of insurance and investment, come in a variety of product types and are sold as a way to safeguard retirement assets until they can be tapped for a stream of income.
Limra, a research firm funded by the insurance industry, reported that annuity sales have hit the highest levels since 2008. Last year, $255 billion of annuities were sold in the U.S., up 16% from 2020. In the first quarter of 2022, U.S. annuity sales totaled nearly $64 billion, a 4% increase over the year-earlier period.
“Annuities fill the void for people who are more risk-averse in today’s marketplace,” says
Derek Delaney,
a registered investment adviser and certified financial planner in…
