Morrone concurred that Nationwide’s communications have also increased with advisors. He added that the firm has been emphasizing the added benefits of the products in the current interest rate environment.
That increased conversation has led to greater inflows for the annuities in general as those who manage and sell the offerings have seen generally positive numbers coming in for them.
“The annuity industry has seen growth and I expect that growth to continue,” Morrone said. “Both consumers and advisors are seeing how annuities can play an important role in securing financial futures.”
Looking ahead, the Fed is expected by many analysts to raise interest rates again by another 75 basis points this month with speculation that additional, yet more modest increases, will follow. That will continue to mean increased opportunities for those looking to invest in annuities.
Sward said with increased rates it will allow for greater flexibility with the investments to provide higher caps for those annuities tied to a particular index.
Chuck DiVencenzo, the executive director and CEO of the Washington, D.C-based National Association of Fixed Annuities, said that annuities will continue to be an attractive investment option. Despite the interest rate change that target audience will continue to be a proper investment for those looking for annual payments, he said.