Annuities can be a great choice for retirees hoping for a safe stream of income during retirement. Among such consumers, nine annuity plans stand at the front of the pack, a new J.D. Power survey says.
Consumers say American Equity Investment Life Insurance does the best job with annuities, followed by Fidelity & Guaranty Life.
Out of a possible score of 1,000, the top nine companies finished as follows:
- American Equity Investment Life Insurance: 838
- Fidelity & Guaranty Life: 829
- Nationwide: 822
- Prudential: 804
- AIG: 803
- Allianz: 801
- Pacific Life: 797
- New York Life: 794
- Lincoln Financial Group: 792
The industry average score was 789. Six companies scored below that benchmark, including last-place Transamerica (AEGON) at 723.
J.D. Power based its rankings on a survey of more than 3,152 consumers who have annuities. Customer satisfaction rankings were based on performance in five factors:
- Product offerings
It is worth noting that TIAA earned a score of 813. However, J.D. Power excluded TIAA from its ranking because it “does not meet study award criteria.” (The company specifically serves people in academic, government, medical, cultural and other nonprofit fields.)
Overall, the annuity industry has struggled a bit during the past 12 months. J.D. Power notes that customer satisfaction with individual annuities has dipped 13 points. The three factors driving the lower scores are declines in:
- Price satisfaction
- Product offerings
If you have been considering purchasing an annuity, now might be a good time to do so. For more, check out “Considering an Annuity? Now’s the Time to Act.”
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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