Why? Something must have changed? Aren’t annuities still perceived as over-priced? Well, yes, their overall reputation may not change, unfortunately. But the benefits they provide are becoming increasingly important to a quickly aging population. As Baby Boom investors approach retirement age, they will look with a more favorable eye on what annuities have to offer.

A large majority of investors surveyed by Spectrem Group each month, both affluent households and 401(k) retirement participants, are looking for ways to solidify an income stream during their approaching retirement. Financial providers are scrambling to provide solutions that meet those growing needs. Some of these products, regardless of what they may be called, look and feel a lot like an annuity products.

In many cases, providers are beginning to offer these types of products within their plans. In other cases, individuals are looking for these products from their financial advisor. In our recent research on the IRA Rollover market, 8% of individuals are looking for a product that will provide an ongoing income stream. This is up 4% from 2001.

While many investors are concerned about large fees, they are also willing to compromise in order to find investments that meet their overall goal of a steady income stream. In fact, fees generally fall to fourth or fifth place when investors identify what is important to them.

As the goal of being financially secure throughout retirement becomes a pressing reality for many investors and plan participants, an advisor that embraces annuities or one of the newly named and cloned products will be brilliantly positioned to meet the needs of their clients.

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