Some advisors appear to expect a change in the mix of annuities they use with their clients over the near term. Though advisors report that their overall use of annuities has remained steady over the past two years, they expect their use of fixed index annuities to grow over the next five years. Half of advisors expect their use to increase somewhat, while nearly a quarter (24%), say they expect their use to increase by 10% or more.
Just over half of advisors expect to increase the number of all types of annuities they use in the next two years, but this expectation does not necessarily reflect an increase in the popularity of annuities overall. Among advisors who believe their overall use of annuities will remain flat over the next two years, 70% expect to increase their use of fixed index annuities over the next five years. These results suggest advisors either see a shift in the mix of annuities they use, slow adoption of fixed index annuities over the next two years, or a mix of the two.
