January 2018 – Fixed Immediate Annuity Product Positioning

Fixed immediate annuities, otherwise known as income annuities or single premium immediate annuities (SPIAs), are the most straightforward annuity type, providing a guaranteed income stream for life after an initial premium payment. Despite the current uncertain regulatory environment and falling annuity sales numbers, fixed annuity products continue to sell at relatively steady rates and we have even seen new products, such as Fidelity’s IncomeSource SPIA with an increasing payout option, enter the space. Fixed immediate annuities are sold by 79% of coverage group firms, and this Annuity Monitor Report assesses how firms position fixed immediate products on their public websites, with a focus on findability, contract details and educational resources.

We distributed a wide range of grades in this report, from some disappointing D’s all the way up to some impressive A’s. Ideally, all firms should provide detailed product pages supported by helpful resources, such as product videos, product brochures, case studies, comparison charts, educational articles, calculators, FAQs and glossaries. Leading firms make annuities prominent on and accessible from their homepages, provide dedicated product pages in well-organized annuity sections, and supplement core offerings with comprehensive educational resources, calculators and tools.

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