Women and persons with household incomes under $100,000 tend to gravitate to non-qualified annuities, according to a Gallup survey released today.
The survey of 1,003 annuity owners nationwide found that 80% have annual household incomes below $100,000 and only 4% have annual incomes greater than $200,000. Most non-qualified annuity owners are female (58%) with the average owner being a retired 70-year-old woman. Overall, most owners (69%) are retired, which is up from 58% in 2005. Owners' average age also increased from 66 to 70 between 2005 and 2009.
Almost 8 in 10 (79%) think that annuities are an important source of retirement security and make them feel more comfortable in times of financial uncertainty, according survey takers Gallup and Mathew Greenwald and Associates. More than 8 in 10 (83%) intend to use their annuities to provide a financial cushion in case they or their spouses live well beyond their life expectancy.
Retired annuity owners are more likely than working annuity owners to cite Social Security (58% vs. 39%) and money their employers put into a retirement plan for them (48% vs. 40%) as major sources of income in retirement. In contrast, working owners are more likely than retired owners to consider money they put into a retirement plan at work (38% vs. 25%) or other personal savings (37% vs. 26%) as major sources of retirement income.