Annuity sales reached $240.3 billion in 2011, an 8 percent increase compared to 2010, according to a report by LIMRA, which represents data from 94 percent of the market (See Table 1.1). Total VA sales sustained 13 percent growth in 2011, growing to $159.3 billion which exceeded total VA sales from 2008. Total fixed annuity sales slipped 1 percent to reach $81.0 billion (includes structured settlements of $5.1 billion).
However, with many of the 77 million baby-boomers facing retirement income shortfalls, annuities will be well positioned because it is the only long-term tax-deferred savings vehicle that can be used to both accumulate and distribute assets to guarantee a lifetime of income one cannot outlive.
Total U. S. Individual Annuity Sales and Assets
Source: Morningstar Inc. and LIMRA International, Windsor, Conn