Annuities can be a great choice for retirees hoping for a safe stream of income during retirement. Among such consumers, eight annuity plans stand at the front of the pack, a recent J.D. Power survey says.
Consumers say F&G, formerly known as Fidelity & Guaranty Life, does the best job with annuities.
Out of a possible score of 1,000, the top eight companies finished as follows:
- Fidelity & Guaranty Life: 843
- MassMutual: 827
- Nationwide: 826
- Pacific Life: 824
- New York Life: 822
- RiverSource: 820
- Lincoln Financial Group: 812
- AIG: 808
The industry average score was 800. One company, American Equity Investment Life Insurance, scored 800. Seven companies scored below that benchmark, including last-place Midland National Life at 762.
J.D. Power based its rankings on a survey of more than 3,579 consumers who have annuities. Customer satisfaction rankings were based on performance in five factors:
- Communication
- Interaction
- Price
- Product offerings
- Statements
It is worth noting that TIAA earned a score of 807. However, J.D. Power excluded TIAA from its ranking. (The company specifically serves people in academic, government, medical, cultural and other nonprofit fields.)
Overall, customer satisfaction with the annuity industry is climbing. The average customer satisfaction score of 800 reflects an 11-point increase from 2022 to 2023. J.D. Power notes that consumer satisfaction levels are highest among those who purchase annuities via provider websites.
Looking for alternatives to a traditional annuity? One might be right under your nose, as we note in “The Annuity Everyone Needs — and Anybody Can Get.”
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