Annuities Surge in Popularity Amid Market Changes

Annuities have seen a significant increase in demand across the United States due to a combination of factors including rising equity markets, higher interest rates, and a growing aging population. Starting in March 2022, the U.S. Federal Reserve raised interest rates as a measure to tackle escalating inflation, which has further impacted the financial landscape. Mike Downing, an executive at Athene Holding Ltd., mentioned that there has been a notable trend of surrenders in annuities, indicating shifting market dynamics and consumer behavior.

Investors are looking for stable income options as traditional savings instruments yield lower returns. The situation also reflects broader trends related to aging investors seeking reliable income streams during retirement. As interest rates rise, the market for annuities evolves, showing resilience despite economic challenges.